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Home My WebLink AboutCity Council Resolution 14-069 -Update to Housing Element RESOLUTION NO. 14-069 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA APPLICATION NUMBERS: ZOA14-0004 AND GPA14-0006 APPROVAL OF THE 2015-2023 GENERAL PLAN HOUSING ELEMENT AND CONFORMING AMENDMENTS TO THE GENERAL PLAN LAND USE ELEMENT The City of Saratoga City Council finds and determines as follows with respect to the above-described application: WHEREAS, the Housing Element is a state-mandated General Plan element that addresses how the City of Saratoga will strive to achieve its share of regional housing needs within the assigned planning period. The State Department of Housing and Community Development (HCD) are responsible for providing the Association of Bay Area Governments (ABAG) with the region's share of the state-wide housing need. ABAG, in turn, through the Regional Housing Needs Assessment (RHNA), determines each jurisdiction's share of regional housing need. The housing need numbers are then incorporated into the Housing Element update and provide the basis for formulation for housing programs for the ensuing planning period; and WHEREAS, on December 4, 2013, the City Council authorized the City Manager to execute an agreement with Metropolitan Planning Group to prepare an update to the General Plan Housing Element for the 2015-2023 planning period;and WHEREAS, public participation opportunities were provided through several means including, two community workshops, three Planning Commission study sessions, Planning Commission and City Council public hearings and meetings, and the City of Saratoga Website; and WHEREAS, on July 23,2014,the Planning Commission held a duly noticed Public Hearing on the draft Housing Element at which time all interested parties were given a full opportunity to be heard and to present evidence and argument. The Planning Commission considered the draft Housing Element, the Staff Report, CEQA documentation, correspondence, presentations from the public, and all testimony and other evidence presented at the Public Hearing. The Planning Commission recommended that the City Council adopt the 2015-2023 General Plan Housing Element; and WHEREAS, on August 20, 2014, the City Council conceptually approved the draft 2015-2023 General Plan Housing Element and authorized staff to submit the draft Housing Element to the State Department of Housing and Community Development for review; and WHEREAS, on October 17, 2014, the State Department of Housing and Community Development accepted the draft 2015-2023 General Plan Housing Element as complete and that it was consistent with the statutory requirements of State Housing Law; and WHEREAS, on November 12, 2014, the Planning Commission held a duly noticed Public Hearing on the General Plan Housing Element Implementation Ordinance and Pagel of 3 conforming amendments to the General Plan Land Use Element at which time all interested parties were given a full opportunity to be heard and to present evidence and argument. The Planning Commission considered the Staff Report, correspondence, presentations from the public, and all testimony and other evidence presented at the Public Hearing. The Planning Commission recommended that the City Council adopt the General Plan Housing Element Implementation Ordinance and amendments to the General Plan Land Use Element; and WHEREAS, on November 19, 2014 the City Council held a duly noticed Public Hearing on the draft Housing Element at which time all interested parties were given a full opportunity to be heard and to present evidence and argument. The City Council considered the draft Housing Element, the General Plan Housing Element Implementation Ordinance, and conforming amendments to the General Plan Land Use Element, the Staff Report, CEQA documentation, correspondence, presentations from the public, and all testimony and other evidence presented at the Public Hearing; and WHEREAS, amendments to the General Plan Land Use Element are intended to ensure internal consistency between the General Plan Land Use Element and the 2015-2023 General Plan Housing Element; and WHEREAS, environmental review was completed in the form of an Initial Study and it was determined that the proposed adoption of the 2015-2023 General Plan Housing Element, the General Plan Housing Element Implementation Ordinance, amendments to the General Plan Land Use Element would not result in potential significant impacts on the environment and a Negative Declaration was prepared and has been adopted by the City Council; and WHEREAS, the City Council finds that the 2015-2023 General Plan Housing Element the General Plan Housing Element Implementation Ordinance, and the proposed amendments to the General Plan Land Use Element are consistent with the City of Saratoga General Plan as amended by this Resolution; and NOW, THEREFORE, the City Council of the City of Saratoga does hereby adopt the 2015-2023 General Plan Housing Element attached as Exhibit B and the related amendments to the General Plan Land Use Element attached as Exhibit A. Page 2 of 3 PASSED AND ADOPTED by the City of Saratoga City Council this 19th day of November 2014 by the following vote: AYES: Mayor Emily Lo, Vice Mayor Howard Miller, Council Member Manny Cappello, Chuck Page,Jill Hunter NOES: None ABSENT: None ABSTAIN: None Emily Lo, Mayor ATTEST: n...,� DATE: ( < 20 "C6gq Bothelio, City Clerk Page 3 of 3 I Proposed Conforming Amendments City of Saratoga General Plan Land Use Element The following amendments to the Land Use Element of the City of Saratoga General Plan dated June 6, 2007 and as amended thereafter) are intended to ensure internal consistency between the Land Use Element and the 2015-2023 Housing Element of the General Plan to be ted concurrently with these amendments. adopted Text to be added is indicated in bold double-underlined font(e.g.,bQd double-underfi to be deleted is indicated in strikeout e. medl and text ( g• �). Text in standard font remains unchanged. 1. The discussion of the"Commercial/Office"land use designations on page 12 of the General Plan is revised as shown below. CommerciallOffice Commercial land is broken into two general subcategories. Densities and intensities of uses permitted in these subcategories are as follows: • Commercial Retail (CR): There are five main commercial areas in the City with this designation. The main commercial areas include Downtown Big Basin Way(including Neale's Hollow),Argonaut Shopping Center,the Gateway,Quito Shopping Center and the Center at Prospect and Lawrence (including nearby Big Tree Center). These commercial areas serve the community and/or their immediate neighborhood. They are not regional in orientation and tend to be located in relatively small complexes. Maximum intensity of building coverage is 60%of net site area,except as regulated by an applicable specific plan. Commercial uses in the downtown Village Area are regulated by the Village Specific Plan (adopted in 1988 and as may be revised by City Council from time to time), including building coverage and height. Where a new commercial development is to be located adjacent to or across from an established single-family or multi-family residential use, appropriate landscape buffers shall be required that are at least equal to the setbacks of the adjacent residential district. No single tenant of said development shall exceed 15,000 square feet of floor area. The commercial area near Prospect and Lawrence is suitable for high density mixed use development with a minimum density of 24 LO—units per net acre for shelters, transitional housing, and supportive housing for homeless individuals families. als and 2. The discussion of the"Overall Height Limit)on page 14 of the General Plan is revised as shown wn Overall Height Limit No structures in Saratoga shall be over two stories in height except that threes I-10 ctur s are allowed in the commercial area near rrnane.�t Av ci111P anr�T �.�,..,.�..... Ex resswav to im lement the nolicies of the 2015 2023 Housin Element and the maximum height of_,men located within the Saratoga Village Area bounda as defined by the Saratoga Village Area Plan, adopted inl988), shall be regulated by he development standards of the Village Area Plan,as may be revised by City Council from f time to time. Public schools and community colleges may be exempt from this height restriction. On sites used for quasi-public uses, a three story structure will be allowed provided the slope underneath the three-story area is 10% or more and a stepped pad is used. 3. The existing text at the bottom of Table LU-1 e npage t of and the de sty of Mixed Use the Land Use Element which provides information on the City's Overall ght Lim Development is amended as set forth below. • Overall Height Limit—No structure permitted over two stories in height except for three stnry ctrtig —--,n the commercial area near Prospect and Lawrence to implement the nnlicec of the 2015 2023 Hod structures located within the Saratoga Village boundary (as defined by the Saratoga Village Area Plan, (1988) which shall be regulated by the"Village Plan")or for quasi-public uses,a three-story structure is allowed provided the slope underneath the three-story area is 10%or more and a stepped pad is used. • Mixed residential/commercial uses are permitted in all commercial lands, with a maximum of 20 dwelling units per acre except the commercial area neer Prosnect Avenue and Lawrence Expressway which allows mixed use development �t a minimum of 30 didu units per acre excluding density bonuses for very low-income, low-income, or senior housing.The residential portion shall not exceed 50%of the total floor area,(850 sq. ft.for a one-bedroom unit-1,250 sq.ft. for a two-bedroom unit),with an increase of 10%of the total floor area permitted for the site, for projects that provide below-market-rate housing. Total site coverage may also be increased by 10% for a project containing below market-rate housing. 2 c�ober 2014 2015 -2023 Housing Element CITY OF SARA is elementestablished goals, and implementa tion ;es to assist the City of �ga in planning for the housing eds of the community. Prepared for: City of Saratoga Planning Department 13777 Fruitvale Avenue Saratoga, California 95070 y f SAgq TO Cq[IFO0.NP Prepared by: Metropolitan Planning Group 579 Clyde Ave, Suite 340 Mountain View, CA 94043 CITY OF SAR.ATOGA HOUSING ELEMENT 2015-2023 SARA-[ A Table of Contents Chapter 1: Introduction........... 1-1. A. Introduction................................................................................................................. 1-1 B. Purpose And Content ......... 1-1 C. ....... ............................ Housing Element Update Process............................................................................. 1-1 D. State Law And Local Planning.................................................................................. 1-2 E. Housing Element Organization.................................................................................. 1-4 F. Citizen Participation ................................................................................................... 1-6 Chapter 2: Housing Needs Analysis ........................................... A. Introduction................................................................................................................. 2-1 B. Community Profile ................. .................................... 2-1 ................................................. 1. Population Trends And Characteristics................................................................ 2-1 2. Employment Trends................................................................................................ 2-5 3. Household Characteristics................................................................................... 2-10 4. Housing Inventory And Market Conditions........................................................ 2-15 B. Housing Needs............... ................................. 2-28 .......................................................... 1. Households Overpaying For Housing ................................................................. 2-28 2. Overcrowding....................................................................................................... 2-29 3. Units At-Risk Of Conversion.................................................................................. 2-29 4. 2014-2022 Regional Housing Needs Allocation................................................. 2-30 5. Special Needs Groups ......................................................................................... 2-30 Chapter 3: Housing Constraints And Resources ......................................................................... 3-1 A. Governmental Constraints And Resources ............................................................. 3-1 1. Land Use Controls................................................................................................... 3-1 2. Density Bonus Ordinance .................................................................................... 3-18 3. Institutional Facilities And Nursing Homes.......................................................... 3-18 4. Emergency Shelters, Transitional And Supportive Housing, And Single-Room OccupancyUnits...................................................................................................... 3-19 5. Adequate Sites For Emergency Shelters/Transitional/Supportive Housing .... 3-20 6. Second Dwelling Units.......................................................................................... 3-21 7. Housing For Persons With Disabilities................................................................... 3-22 8. Building Codes And Enforcement...................................................................... 3-23 October 2014 li S A KAT Awv 9. On And Off-Site Improvements........................................................................... 3-24 10. Development Fees............................................................................................. 3-25 11 . Local Processing And Permit Procedures........................................................ 3-31 12. Measure G........................................................................................................... 3-35 13. Environmental And Infrastructure Constraints................................................. 3-36 B. Non-Governmental Constraints.............................................................................. 3-41 1. Vacant And Underutilized Land ......................................................................... 3-41 2. Land Prices............................................................................................................ 3-41 3. Construction Costs ............................................................................................... 3-41 4. Mortgage And Rehabilitation Financing........................................................... 3-42 C. Resources .................................................................................................................. 3-44 1. Community Development Block Grant Program ............................................. 3-44 2. Community Services Grant ................................................................................. 3-45 3. Energy Conservation............................................................................................ 3-46 Chapter4: Policy Program ............................................................................................................ 4-1 A. Policy Action Areas...................................................................................................... 4-1 B. Policy Actions................................................................................................................ 4-1 Appendix A: Community Outreach .............................................................................................A-1 A. Introduction.................................................................................................................A-1 Appendix B: Residential Land Resources .................................................................................... B-1 A. Sites To Accommodate The 2014-2022 Rhna.......................................................... B-1 1. Projects In Process .................................................................................................. B-2 2. Sites Capacity To Meet Regional Share Goals ................................................... B-3 3. Sites Summary ....................................................................................................... B-12 B. Assisted Units "At-Risk" Of Conversion...................................................................... B-13 1. Inventory Of At-Risk Units ..................................................................................... B-13 2. Preservation And Replacement Costs............................................................... B-14 3. Resources For Preservation.................................................................................. B-16 AppendixC: Past Performance ....................................................................................................0-1 AppendixD: Glossary Of Terms ....................................................................................................D-1 October 2014 �� S A RAT A j ii(nd LC Coir C i Via,`U Table of Exhibits Table 1-1. State Housing Element Requirements .................................................................... 1-2 Table 2-1. Regional Population Trends 2000-2010...................................................................2-2 Table 2-2. Population Growth 1990-2010 .................................................................................2-2 Table 2-3. Age Distribution 2000, 2010, and 2012....................................................................2-4 Table 2-4. Racial and Ethnic Distribution 2000-2010 ...............................................................2-5 Table 2-5. Jobs in Saratoga by Industry 2007-2011 .................................................................2-6 Table 2-6. Major Employers in Saratoga, 2013 ........................................................................2-7 Table 2-7. Occupations of Residents by Industry 2000-2011 ..................................................2-8 Table 2-8. Labor Trends in Saratoga.........................................................................................2-9 Table2-9. Job Projections........................................................................................................2-10 Table 2- 10. Total Households..................................................................................................2-11 Table 2-11. Household Tenure in Saratoga............................................................................2-1 1 Table 2-12. Persons per Household.........................................................................................2-11 Table 2-13. Household Size Distribution ..................................................................................2-12 Table 2-14. Household Income Distribution ...........................................................................2-12 Table 2-15. Income Limits by Category..................................................................................2-13 Table 2-16. Household Income Level by Tenure...................................................................2-13 Table 2-17. Countywide Median Household Income in 2011 .............................................2-14 Table 2-18. Bay Area Wages for Select Occupations - 2013...............................................2-15 Table 2-19. Number of Housing Units in Saratoga and Santa Clara County.....................2-16 Table 2-20. RHNA Housing Achievements .............................................................................2-16 Table 2-21. Unit Size by Tenure ................................................................................................2-17 Table 2-22. Housing Inventory by Unit Type...........................................................................2-18 Table 2-23. Unit Type by Tenure ..............................................................................................2-18 Table 2-24. Occupied Units by Tenure ...................................................................................2-19 Table2-25. Vacancy Rates .....................................................................................................2-19 Table 2-26. Age of Housing Stock...........................................................................................2-20 Table 2-27. Units Lacking Complete Plumbing or Kitchen Facilities....................................2-21 Table 2-28. Median Housing Value.........................................................................................2-21 Table 2-29. Value of Owner-Occupied Housing Units..........................................................2-22 Table 2-30. Median Sales Price ...............................................................................................2-22 Table 2-31. Saratoga Home and Condominium Sales Price Jan.- Dec. 2013 .................2-23 Table 2-32. 2013 Maximum Affordable Housing Cost (Moderate Income), Santa Clara County.......................................................................................................................................2-24 Table 2-33. Saratoga 2014 Rental Survey...............................................................................2-25 Table 2- 34. Gross Rent as a Percentage of Household Income ........................................2-26 Table 2- 35. 2013 Maximum Affordable Rents, Santa Clara County..................................2-27 Table 2-36. Owner Household Overpayment by Household Income Level......................2-28 October 2014 SARAT At Table 2-37. Renter Household Overpayment by Household Income Level ......................2-29 Table 2-38. Overcrowded Households...................................................................................2-29 Table 2-39. Regional Housing Needs Allocation...................................................................2-30 Table 2-40. Senior Households by Age Group and Tenure..................................................2-31 Table 2-41. Senior Income Distribution (Householder Over 65) ...........................................2-31 Table 2-42. Poverty Rates among Senior Age Groups .........................................................2-32 Table 2-43. Residents 65 and Over with at Least One Disability..........................................2-33 Table 2-44. Large Households by Tenure ...............................................................................2-34 Table 2-45. Units by Number of Bedrooms.............................................................................2-35 Table 2-46. Female-Headed Households...............................................................................2-35 Table 2-47. Female Headed Households below Poverty Level...........................................2-36 Table 2-48. Persons with at Least One Disability....................................................................2-37 Table 2-49. Persons Ages 18-64 with Disabilities by Type......................................................2-37 Table 2-50. Persons with Developmental Disabilities in Saratoga .......................................2-37 Table 2-51. Living Situation of Persons with a Developmental Disability in Santa Clara County ................2-38 ............................................................................................................... Table 2-52. Low Income Households......................................................................................2-40 Table 2-53. Renter Housing Problems by Income Level .......................................................2-41 Table 2- 54. Owner Housing Problems by Income Level......................................................2-42 Figure2- 1. Population Growth .................................................................................................2-3 Table 3-1. General Plan Residential Land Use Designations..................................................3-2 Table 3-2. Residential uses- Permitted & Conditionally Permitted.......................................3-6 Table 3-3. Summary of Residential Zoning Requirements ......................................................3-8 Table 3-4. Summary of Multiple Family Residential Zoning Requirements .........................3-14 Table 3-5. Summary of Mixed-Use Development Standards...............................................3-15 Table 3-6. Residential Parking Requirements.........................................................................3-16 Table 3-7. Homeless Facilities near Saratoga ........................................................................3-20 Table3-8. Street Widths............................................................................................................3-24 Table 3-9. Comparative Development Fee Summary 2013-2014.......................................3-26 Table 3-10. Typical Development Fees Comparison Single-Family and Multiple-Family .3-31 Table 3-11. Local Development Processing Time .................................................................3-32 Table 3-12. Typical Development Processing Timelines by Development Type ...............3-35 Table 3-13. Construction Cost Estimates................................................................................3-41 Table 3-14. Home Purchase and Improvement Loans - 2012..............................................3-42 Table 3-15. Santa Clara County CDBG and HOME Funded Programs..............................3-45 Figure3-1 . Mortgage Rates -2013...........................................................................................3-44 Table 4-1. Housing Element Quantified Objectives 2015-2023............................................4-13 October 2014 ! .; S A KAT A OF • Appendices Exhibits and Tables Exhibit B-1. Housing Opportunity Sites.......................................................................................B-6 TableB-1. Approved Units .........................................................................................................B-2 Table B-2. Approved Subdivisions.............................................................................................B-3 Table B-3. Vacant Land Inventory............................................................................................B-4 Table B-4. Prospect Road Candidate C-N(RHD) Sites............................................................B-5 Table B-5. Village Sites Inventory...............................................................................................B-8 Table B-6. Gateway Sites Inventory..........................................................................................B-9 Table B-7. Fellowship Plaza Retirement Community............................................................. B-11 TableB-8. Sites Summary.......................................................................................................... B-12 Table B-9. Publicly Assisted Rental Housing ........................................................................... B-14 Table B-10. Annual Rent Subsidies Required to Preserve At-risk units ................................. B-15 Table B-11. Replacement Costs of At-Risk Units .................................................................... B-16 Table C-1. Evaluation of 2007-2014 Housing Element Past Performance ........................... C-1 Table C-2. Progress in Achieving Housing Element Quantified Objectives 2007-2014.... C-12 October 2014 �-IIN OF* SARATTABLE OF CONTENTS ��ct SAggr L �9 CqI/fORN�P October 2014 M SARA Introduction Chapter 1 : Introduction A. Introduction The Housing Element of the General Plan identifies and analyzes existing and projected housing needs and contains the official policies for the preservation, conservation, rehabilitation, and production of housing in the city of Saratoga. This Housing Element covers the Planning Period from January 2015 through June 2023. B. Purpose and Content The Housing Element addresses housing ! U = opportunities for current and future Saratoga residents through 2023 and provides the primary Policy y guidance for local decision making related to housing. 1 The Housing Element is the only General Plan Element that requires review and certification by the State of California. The Housing Element provides a detailed analysis of the city's demographic, economic, and housing characteristics as required by State law. The Housing Element also evaluates the City's progress in implementing the 2007-2014 policy program and actions related to housing production, preservation, conservation, and rehabilitation. Based on community housing needs, available resources, housing constraints/opportunities, and analysis of past performance, the Housing Element identifies goals, objectives, and action programs that address existing and projected housing needs in Saratoga. C. Housing Element Update Process The California State legislature has identified the attainment of a decent home and suitable living environment for every Californian as a State-wide goal. Local planning programs play a critical part in achieving this goal. Therefore, the Legislature mandates that all cities and counties prepare a Housing Element as part of their comprehensive General Plans. October 2014 EIII I S A IAT Aintroduction D. State Law and Local Planning j 1 . Consistency with State Law The Housing Element is one of the seven Elements of the General Plan required by State law (Sections 65580 to 65589.89 of the California Government Code). Each jurisdiction's Housing Element must contain "identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, and scheduled program actions for the preservation, improvement, and development of housing." The Housing Element plans for the provision of housing for all segments of the city's population. Section 65583 of the Government Code sets forth specific requirements regarding the scope and content of each Housing Element. Table 1-1 summarizes these requirements and identifies the applicable sections of the Housing Element where these requirements are addressed. Table 1-1. State Housing Element Requirements Table 1-1 State Housing Element Requirements Required Housing Element Component Reference A. Housing Needs Assessment 1. Analysis of population trends in Saratoga in relation to Chapter 2 countywide trends 2. Analysis of employment trends in Saratoga in relation to Chapter 2 regional trends 3. Projections and quantification of Saratoga's existing and Chapter 2 projected housing needs for all income groups 4. Analysis and documentation of Saratoga's housing Chapter 2 characteristics, including: a. Overpayment Chapter 2 b. Overcrowding Chapter 2 C. Housing conditions Chapter 2 5. Analysis of land suitable for residential development Appendix B 6. Analysis of governmental constraints upon housing Chapter 3 7. Analysis of nongovernmental constraints upon housing Chapter 3 8. Analysis of special housing needs Chapter 2 9. Analysis of emergency shelters Chapter 3 October 2014 S ARAT A 10. Analysis of assisted housing developments that are eligible to Appendix B change from low-income housing during the next 10 years Table 1-1 State Housing Element Requirements Required Housing Element Component Reference B. Goals and Policies 11. Identification of Saratoga's goals, quantified objectives and Chapter 4 policies relative to the maintenance, improvement and development of housing C. Implementation Program 12. Identification of adequate sites which will be made Appendix B available through appropriate action to accommodate a variety of housing types for all income levels 13. Identification of programs to assist in the development of Chapter 4 adequate housing to meet the needs of low and moderate-income households 14. Identification of opportunities to remove governmental Chapter 4 constraints to the maintenance, improvement, and development of housing 15. Identification of opportunities to remove constraints and/or Chapter 4 provide reasonable accommodations for housing for persons with disabilities 16. Identification of opportunities to conserve and improve the Chapter 4 condition of the existing affordable housing stock 17. Identification of programs to promote housing opportunities Chapter 4 for all persons 18. Identification of programs to address the potential conversion Chapter 4 of assisted housing development to market-rate housing 2. General Plan Consistency The California Government Code (Section 65300.5) requires internal consistency among each Element of the General Plan. The General Plan Elements shall provide an integrated, internally consistent, and compatible statement of policy. The City of Saratoga continuously reviews the General Plan for internal consistency when updates or amendments occur. The City has reviewed the other Elements of the General Plan and determined that the Housing Element is internally consistent. 3. Relationship to Other Plans and Programs The Housing Element identifies goals, objectives, policies, and actions for the 2015-2023 October 2014 u n ur S A RAT !>`. .. . . Planning Period that directly addresses existing and future housing needs in Saratoga. City plans and programs work to implement the goals, objectives, and policies of the Housing Element. E. Housing Element Organization The City of Saratoga's Housing Element is organized into four parts: • Introduction: Explains the purpose, process and content of the Housing Element. • Housing Needs Analysis: Describes the demographic, economic and housing characteristics of Saratoga as well as existing and future housing needs. • Resources and Constraints Analysis: Analyzes the actual and potential governmental and non-governmental constraints to the maintenance, preservation, conservation and development of housing. • Housing Policy Program: Details specific policies and programs the City will carry out over the Planning Period to address Saratoga's housing goals. Supporting background material is included in the following appendices: • Appendix A: Community Outreach Summary • Appendix B: Residential Land Resources • Appendix C: Review of the 2007-2014 Housing Element Performance • Appendix D: Glossary of Housing Terms Acronyms used in this document include: ABAG: Association of Bay Area Governments ACS: American Community Survey ADA: Americans with Disability Act AMI: Area Median Income APN: Assessor's Parcel Number BMPs: Best Management Practices CaIFHA: California Housing Finance Agency CALTRANS: California Department of Transportation CC&Rs: Covenants, Conditions, and Restrictions CCRC: California Community Reinvestment Corporation CDBG: Community Development Block Grant CDD: Community Development Director CEQA: California Environmental Quality Act CHAS: Comprehensive Housing Affordability Strategy CIP: Capital Improvement Program DIF: Development Impact Fee DOF: Department of Finance for State of California DU/AC: Dwelling Unit per Acre October 2014 S A��R AT DU/ac: Dwelling units per acre DU: Dwelling Unit EDD: California Employment Development Department ELI: Extremely Low Income FAR: Floor Area Ratio FEMA: Federal Emergency Management Agency FHA: Fair Housing Act of 1998 GMI: Gross Monthly Income HCD: Department of Housing and Community Development HH: Household HMDA: Home Mortgage Disclosure Act HOA: Homeowners Association HUD: Federal Department of Housing and Urban Development LAFCO: Local Agency Formation Commission LIHTC: Low Income Housing Tax Credit MFI: Median Family Income MPO: Metropolitan Planning Organization NFIP: National Flood Insurance Program NPDES: National Pollutant Discharge Elimination System PG&E: Pacific Gas & Electric RHNA: Regional Housing Need Allocation RTP: Regional Transportation Plan SARC: San Andreas Regional Center SASCC: Saratoga Area Senior Coordinating Council SNF: Skilled Nursing Facility SPA: Sectional Planning Area SRO: Single Room Occupancy STF: Summary Tape File (U.S. Census) SVILC: Silicon Valley Independent Living Center TDM: Transportation Demand Management TOD: Transit-Oriented Development TSM: Transportation Systems Management WCP: Water Conservation Plan Zoning Acronyms Used A: Agricultural CFS: Community Facility C-H: Commercial Historic CH-l: Commercial Historic District 1 C-N(RHD): Commercial Neighborhood High Density Residential CN: Commercial Neighborhood CR: Commercial Retail October 2014 i y t � S A RAT... n�'rr„'°: C-V: Commercial Visitor M-10: Medium Density Residential M-12.5: Medium Density Residential M-15: Medium Density Residential OS-H: Hillside Open Space P-A: Professional and Administrative Office R-1: Single-Family Residential RLD: Low Density Residential R-M: Multi-Family Residential RVLD: Very Low Density Residential F. Citizen Participation The Housing Element was developed through the combined efforts of City staff and consultants, the Planning Commission, and the City Council. Citizen input was received through public workshops and public hearings conducted by consultants, the Planning Commission and the City Council. Notices for these workshops and hearings were published on the City's website and posted at City Hall and other public facilities. In addition, housing stakeholder-organizations involved in the development of housing or representing the interests of lower income and special needs households were contacted directly to participate in public workshops. 1 . Community Workshops and Public Study Sessions The following community workshops were advertised and open to the general public: • Study Session #1: January 21, 2014-Planning Commission • Workshop #1 : February 25, 2014, Joan Pisani Community & Senior Center • Workshop #2: March 11, 2014, Joan Pisani Community & Senior Center • Study Session #2: March 25- Planning Commission • Study Session #3: June 24, 2014- Planning Commission - Draft Housing Element Review During the community workshops, participants were provided with an overview of the Housing Element update process and content. Participants were then asked to identify and discuss challenges, opportunities and resources related to housing in Saratoga. Comments received through the outreach activities have been considered in the development of the Housing Policy Program provided in Chapter 4 of this document. A summary of the comments is provided in Appendix A of the Housing Element. October 2014 ' ' LII1 U1 S A RAT PUG �n„ . HOUSING NEEDS ANALYSIS Chapter 2: Housing Needs Analysis A. Introduction When preparing the Housing Element, jurisdictions must evaluate both existing and future housing needs for all segments of the population. This section analyzes demographic, economic and housing characteristics that influence the demand for and availability _ of housing. The analyses form a foundation a - for developing programs and policies that �� ' �► - a seek to address identified housing needs according to income, tenure and special needs groups. Single Family Residence Primary data sources utilized in this analysis include the 2000 and 2010 U.S. Census, the California Department of Finance (DOF), the Department of Housing and Urban Development (HUD) and the Association of Bay Area Governments (ABAG). These data sources are the most reliable for assessing existing conditions and provide a basis for consistent comparison with historical data and for making forecasts. B. Community Profile 1. Population Trends and Characteristics Housing needs are generally influenced by population and employment trends. This section provides a summary of the changes to the population size, age and racial composition of the city. a. Historical, Existing and Forecast Growth The city of Saratoga is one of 15 cities in the County of Santa Clara. The 2010 Census reports a population of 1,781,642 in Santa Clara County. Table 2-1 shows the population of other Bay Area counties relative to Santa Clara. Santa Clara County experienced a higher percent change in population growth compared to the cumulative regional population growth rate in the Bay Area. October 2014 S A RAT ,,,.��„AHOUSING NEEDS ANALYSIS ' _ _ ___. Table 2-1. Regional Population Trends 2000-2010 Numerical Percent Total Population Chane Change 2000 2010 2000 to 2010 2000 to 2010 Santa Clara County 1,682,585 1,781,642 99,057 6% Alameda County 1,443,741 1,510,271 66,530 5% Contra Costa County 948,816 1,049,025 100,209 11 Marin County 247,289 252,409 5,120 2% Napa County 124,279 136,484 12,205 10% City and County of San Francisco 776,733 805,235 28,502 4% San Mateo County 707,161 718,451 11,290 2% Solano County 394,542 413,344 18,802 5% Sonoma County 458,614 483,878 25,264 6% Bay Area Total 6,783,760 7,150,739 366,979 5% State of California 33,871,648 37,253,956 3,382,308 10% Source:Census 2000 and 2010,via ABAG Data for Bay Area Housing Elements According to the U.S. Census, Saratoga experienced a 7 percent population increase between 1990 and 2000, and less than 1 percent increase between 2000 and 2010. Table 2-2 compares Saratoga's population growth trends with those of the County. Despite a slower growth rate over the past decade, ABAG predicts that growth rates will increase and the city will have nearly 3,000 more residents in 2040. In 2013, The California Department of Finance estimated Saratoga's population to be 30,706. Figure 2-1 shows population growth projected by ABAG. Table 2-2. Population Growth 1990-2010 Total Population 1990-2000 Growth 2000-2010 Growth 1990 2000 2010 Number Percent Number Percent Chane Change Saratoga 28,061 29,843 29,926 1,782 6% 83 <1% Santa Clara 1,497,577 1,682,585 1,781,642 t 185,008 12% 99,057 6% County Total Source:Census 1990,via 2014-2009 Saratoga Housing Element;Census 2000 and 2010,via ABAG Data for Bay Area Housing Elements 'i October 2014 CITY or SARAT HOUSING NEEDS ANALYSIS Figure 2- 1. Population Growth 33,000 32,700 32,500 32,000 31,900 31,500 0 31,000 30,800 30,500 Q- 29,843 29,926 CO 30,000 29,500 29,000 28,500 28,000 2000 2010 2020 2030 2040 Source:ABAG b. Age Composition Between 2000 and 2010, Saratoga experienced a proportional decline in the younger and prime working age population groups and a proportional growth in older age groups. The number of residents of "Preschool" (0-4 years) and "School" (5-17 years) age decreased over the decade. The majority of Saratoga's working age population, "Prime Working" (25-54 years) age, experienced a decrease from 41 percent of the population in 2000 to 37 percent in 2010. Saratoga's "Retirement" (55-64 years) age and "Senior Citizen" (65+ years) age populations increased over the decade. In 2000 these age groups combined to make up 29 percent of the population. In 2010 they had grown to 35 percent of the population. The growing proportion of older residents and the decreasing proportion of younger residents was reflected in the higher median age in 2010 (47.8 years) compared with that of 2000 (43.2 years). October 2014 HOUSING NEEDS ANALYSIS Table 2-3. Age Distribution 2000, 2010, and 2012 2000 2010 2012 Number Percent Number Percent Number Percent Preschool 0-4 ears 1,597 5% 977 3% 927 35 School 5-17 years 5901 20% 5803 19% 1 5855 20% Young Adult 18-24 years 1454 5% 1783 6% 1636 5% Prime Working (25- 54 years) 12,337 41% 10,976 37% 11,308 38% Retirement 55-64 years 3,695 12% 4,300 14% 4,469 15% Senior Citizen (65+ Years) 4,859 16% 6,087 20% 1 5,864 20% Total 29,843 100% 29,926 100% 1 30,059 100% Source:ACS 2008-2012;Census 2000 and 2010,via ABAG Data for Bay Area Housing Elements C. Race and Ethnicity Saratoga residents who identified themselves as non-Hispanic White represented a majority in 2010. Their population had decreased since the 2000 Census while the Asian and Pacific Islander population had grown. White residents represented 52 percent of the population in 2010, down from 65 percent in 2000. The group experienced the largest population decrease among various groups in terms of absolute numbers, with 4,003 fewer White residents reported in 2010 than in 2000. In contrast, the Asian and Pacific Islander population experienced the largest growth in absolute numbers, gaining 3,668 during the same period. The Asian and Pacific Islander population increased from 29 percent of the population in 2000 to 41 percent in 2010. Table 2-4 shows the city's racial and ethnic distribution. October 2014 S ARAT HOUSING NEEDS ANALYSIS Table 2-4. Racial and Ethnic Distribution 2000-2010 2000 2010 2000-2010 Chan e Number Percent Number Percent Number Percent White 19,434 65% 15,431 52% -4,003 -21% Black American Indian & 110 <1% 91 <% -19 -17% Alaskan Native 34 <% 24 <1% -10 -29% Asian* & Pacific Islander 8,686 29% 12,354 <41% 3,668 42% Other 37 <% 56 <1% 19 51 Two or More Races 606 2% 936 3% 330 55% Hispanic 936 3% 1,034 4% 98 11% Total 29,843 1 9,926 100% Source:Census 2000 and 2010,via ABAG Data for Bay Area Housing Elements 83 <1 *Asian includes,but is not limited to:Indian,Chinese, Filipino,Japanese, Korean,and Vietnamese 2. Employment Trends Employment characteristics and trends can shed light on relationship between jobs and housing in the city. Census data since 2000 shows a decreasing number of employed residents, correlating to the increase in retired and senior residents. However, the number of jobs in the city remained steady between 2007 and 2011 and the 12,500 employed residents, shown in 2011 American Community Survey data, outnumbered the 7,609 job opportunities in the city. Saratoga has limited opportunities for extensive commercial and employment growth because there are few remaining vacant parcels in the city. In Saratoga, the top five industries have remained the same between 2007 and 2011 but their employment figures have changed. Educational services has remained the top industry over the 5 year period and had a 12 percent increase in employment opportunities. Health Care and Social Assistance, the second largest employer, experienced a 13 percent increase in the number of employment opportunities. Accommodation and Food Services grew by 42 percent to become the third largest employer in 2011. Professional, Scientific, and Technical Services (down 18%) and Other Services (down 14%) had fewer opportunities in 2011 than in 2007 but remained within the top five industries in the city. October 2014 — -- -- i i A S A l�AT' NEEDSHOUSING,°,r,,,... ---- -- Table 2-5. Jobs in Saratoga by Industry 2007-2011 - -�Numbe+r 'Pere Tlmr► Educational Services 2,493 34% 2,790 37% 297 12% Health Care and Social Assistance 1,125 15% 1,268 17% 143 13% Accommodation and Food Services 517 7% 734 10% 217 42% Other Services (excluding Public -133 -18% Administration) 726 10% 593 8% Professional, Scientific, -91 -14% and Technical Services 638 9% 547 7% Real Estate and Rental -20 -6% and Leasing 325 4% 305 4% Retail Trade 422 6% 303 4% -119 -28% Finance and Insurance 154 2% 191 3% 37 24% Construction 217 3% 184 2% -33 -15% Wholesale Trade 151 2% 183 2% 32 21% Administration & Support, Waste Management and 17 12% Remediation 137 2% 154 2% Arts, Entertainment, -23 -14% and Recreation 160 2% 137 % 5 5% 1 Public Administration 95 1% 100 1% Manufacturing91 1% 51 1% -40 -44% Information 89 1% 24 <1% -65 -73% Transportation and <1% 2 10% Warehousin 21 <1% 23 Agriculture, Forestry, <1% 14 700% Fishingand Hunting2 <1% 16 8 <1% b <1% -2 -25% Utilities Management of Companies and 0 0% -1 -100% Enterprises 1 0% Mining, Quarrying, and -1 -100% Oil and Gas Extraction 1 0% 0 0% Total 7,373 100% 7,609 100% 236 3% Source:U.S.Census OnTheMap 2007&2011 October 2014 uir ur S A RAT A HOUSING NEEDS ANALYSIS Several of the major employers were in the Education industry, which corresponds to data showing that it has been the industry with the largest employment in Saratoga. The City of Saratoga's Comprehensive Annual Financial Report FY2012-2013 listed the top 10 employers in 2013 shown in Table 2-6. The Education industry will likely continue to provide large number of employment opportunities in the city. Table 2-6. Major Employers in Sarato a, 2013 Employer Employees West Valley Community College 765 Saratoga Retirement Community 260 Saratoga High School 132 Sub-Acute Saratoga Hospital 120 Our Lady of Fatima 101 Prosped High School 100 Redwood Middle School 96 Gene's Fine Foods 80 Safeway 65 Villa Montalvo 60 Source:City of Saratoga,Comprehensive Annual Financial Report FY2012-2013 Overall employment among Saratoga residents had a slight decline between 2000 and 2011 but has grown since 2011. Saratoga had approximately 12,500 employed residents according to the 2007-2011 American Community Survey, eight hundred fewer than reported in 2000. More residents were employed in Manufacturing than any other industry between 2000 and 2011 . Nearly four hundred fewer residents held jobs in this industry in 2011 than in 2000 (down 9 percent). The industry that employed the second largest number of residents in 2000 - Professional, Scientific, Management, Administrative, and Waste Management services - experienced a 5 percent increase by 2011. Despite moderate increases in this industry and other industries such as Whole Sale Trade and Retail Trade, fewer residents were employed in other industries, which offset some of the increases. By 2011, fewer residents were employed in Construction (- 186); Finance, Insurance, Real Estate, and Rental and Leasing (-295); and Public Administration (-101). Table 2-7 shows the breakdown of occupational data by industry for Saratoga and Santa Clara County residents. The California Employment Development Department data, shown in Table 2-8, indicates that employment has grown in Saratoga since 2011, however occupational distribution is not shown. The Census and American Community Survey best convey the occupational trends, though not as current as the EDD data. .._..................... October 2014 S A"K T HOUSING NEEDS ANALYSIS ---- ----- --- Table 2-7. Occupations of Residents by Industry 2000-2011 2000 2011 2000-2011 Change Number Percent Number Percent Number Percent Agriculture, Forestry, Fishing and Hunting, and Mining 18 <1% 1 18 <1% 0 0% Construction 422 3% 236 2% -186 -44% Manufacturing 4,253 32% 3,882 31% -371 -9% Wholesale Trade 389 3% 478 4% 89 23% Retail Trade 1,019 8% 1,078 9% 59 6% Transportation and Warehousing, and Utilities 137 1% 140 1% 3 2% Information 713 5% 632 5% -81 -11% Finance, Insurance, Real Estate, and Rental and Leasing 941 7% 646 5% -295 -31% Professional, Scientific, Management, Administrative, and Waste Management Services 2,514 19% 2,642 21% 128 5% Educational, Health, and Social Services 1,992 15% 1,911 15% -81 -4% Arts, Entertainment, Recreation, Accommodation, and Food Services 369 3% 297 2% -72 -20% Other Services (except Public Administration) 249 2% 313 3% 64 26% Public Administration 328 3% 227 2% -101 -31% Total 13,344 100% 12,500 100% -844 Source:Census 2000 and American Community Survey 2007-2011,via ABAG Data for Bay Area Housing Elements As economic recovery brings improved job prospects to the Bay Area, employment among Saratoga residents will continue to increase. The California Employment Development Department reports that employment numbers were able to keep pace with growth in the labor force, causing the unemployment rate to drop every year since 2010. Table 2-8 shows labor trends between 2008 and 2013. October 2014 ARATS , A Table 2-8. Labor Trends in Sarato a Labor Force Employment Unem to ent Number Number Number Rate 2008 13,400 13,000 400 3.0% 2009 13,200 12,400 700 5.5% 2010 13,200 12,500 700 5.6% 2011 13,500 12,800 700 5.0% 2012 13,900 13,300 600 4.2% 2013 1 14,300 13,800 400 3.1% Source:California Employment Development Department Most Saratoga residents worked with in Santa Clara County. According to U.S. Census OnTheMap, only 5 percent of Saratoga residents worked in the city. About 63 percent worked elsewhere in the County, with San Jose as a major employment center for more than 23 percent of residents. Five percent of residents worked in San Mateo County. Four percent worked in San Francisco. Six percent worked in the East Bay. About 90 percent of Saratoga residents relied on automobile transportation for their commute. According to the 2007-2011 American Community Survey, 84 percent of residents drove alone and 6 percent carpooled. One percent of residents walked and less than one percent used public transportation or other means. Eight percent of residents worked from home. The average commute among all residents was 25.5 minutes. Since 95 percent of residents worked outside of the city, driving has been the predominant means of travel. The Association of Bay Area Governments forecast predicts that job opportunities in Saratoga will grow from 9,910 in 2000 to 11,640 in 2040, but a more conservative growth scenario should be expected. Table 2-9 shows the ABAG projections for job growth in Saratoga and Santa Clara County over the next 3 decades. The City believes that employment figures may be lower than those generated by ABAG. U.S. Census OnTheMap 2011 estimated an employment figure (7,373) that was lower than ABAG's 2010 projection number (9,910). As a result, projections using the larger 2010 number may be inflated. Further, the largely residential character of Saratoga does not provide significant land area for commercial and employment growth. Job growth is more likely to take place elsewhere in Santa Clara County, as illustrated by ABAG projections. October 2014 S A l�A TA HOUSING NEEDS ANALYSIS Table 2-9. Job Projections Projections 2010 2020 2030 2040 Saratoga 9,910 10,840 11,170 11,640 Santa Clara County 926,270 1,091,270 1,147,020 1,229,520 Numerical Change 2010-2020 2020-2030 2030-2040 Saratoga 930 330 470 Santa Clara Counfy 165,000 55,750 82,500 Percent Change 2010-2020 2020-2030 2030-2040 Saratoga 9% 3% 4% Santa Clara Count 18% 5% 7% Source:ABAG Projections 2013 3. Household Characteristics This section describes Saratoga's household characteristics. The U.S. Census Bureau defines a "household" as all persons living in a single housing unit, whether or not they are related. One person living alone is considered a household, as is a group of unrelated people living in a single housing unit. The U.S. Census Bureau defines "family" as related persons living within a single housing unit. a. Household Formation and Composition In 2013, the Department of Finance reported 10,778 households in Saratoga, which marked less than a 1 percent increase from 10,734 households in 2010. As a point of reference, the rate of growth over the previous decade (from 2000 to 2010) was 3 percent. In Santa Clara County, the total number of households increased 1 percent between 2010 and 2013. Between 2000 and 2010, the population increased 7 percent. The number of households corresponds to the number of occupied housing units. The increase in renter households contributed to Saratoga's overall household growth. Between 2000 and 2010, renter households grew 41 percent, from 1,044 to 1,476 households. During the some period, owner households decreased by 2 percent. Despite the growth in renter households, owner households still accounted for 86 percent of households in 2010. Table 2-10 shows household growth over the past decade, and Table 2-11 shows the change in owner and renter households. r October 2014 Uiii u ('"R S ARA' 3A Table 2- 10. Total Households 2000 2010 2013 2000-2010 Chane 2010-2013 Change Number Number Number Number Percent Number Percent Saratoga 10,450 10,734 10,778 284 3% 44 <1% Santa Clara County 1 565,863 1 604,204 611,426 38,341 7% 7,222 1% Source:Census 2000 and 2010,via ABAG Data for Bay Area Housing Elements Table 2-11. Household Tenure in Saratoga 2000 2010 2000-2010 Change Number Percent Number Percent Number Percent Owner 9,406 90% 9,258 86% -148 -2% Renter 1,044 10% 1,476 14% 432 41% Total 10,450 1 100.0% 10,734 100% 284 3% Source:Census 2000 and 2010,via ABAG Data for Bay Area Housing Elements The average number of persons per household in Saratoga was 2.8 in 2010. Household sizes remained about the same in the city and county between 2000 and 2010. As shown in Table 2-12, the average number of persons per household in Saratoga continued to be lower than the County average. Table 2-12. Persons per Household 2000 2010 -Saratoga 2.8 2.8 Santa Clara County 2.9 2.9 Source:Department of Finance E8 2000,Table 1 and 2;Department of Finance E5 2010,Table 1 and 2 Owner households comprised 86 percent of households in Saratoga, and total household size distributions in the city closely followed the owner household distribution. Two-person households made up 37 percent of owner households. Four-person households accounted for 22 percent of owner households, while three-person households accounted for 19 percent of owners. Total household distributions similarly followed this pattern because of the overwhelming number of owners compared to renters. For instance, more than one-third renters were single-person households. The small proportion of renters to owners did little to affect the total household distribution pattern. Table 2-13 shows household sizes by tenure. October 2014 SARAT „, A HOUSING NEEDS ANALYSIS Table 2-13. Household Size Distribution ;- Owner Renter Total Number Percent Number Percent Number Percent 1-Person 1,189 13% 551 37% 1,740 16% 2-Person 3,409 37% 351 24% 3,760 35% 3-Person 1,738 19% 193 13% 1,931 18% 4-Person 2,019 22% 251 17% 2,270 21% 5-Person 615 7% 96 7% 711 7% 6-Person 221 2% 28 2% 249 2% 7-Person or more 67 1% 6 <1% 73 1% Total 9258 100% 1,476 100% 10,734 100% Source:Census 2010,via ABAG Data for Bay Area Housing Elements b. Household Income Saratoga's overall median income was $155,182 in 2011. There was a large difference in median incomes between owner and renter households. Owner households in 2011 had a median income of $166,602. The median income of renters was $77,932, less than half of the owner median income. Nearly 70 percent of all households had incomes of $100,000 or more, the majority of which were owners. Income distribution of Saratoga's households is shown in Table 2-14. The large number of owner households, which typically have higher incomes, hides the disparity in median incomes between owner and renter households. Table 2-14. Household Income Distribution Owner Renter Total Number Percent of Number Percent of Number Percent of Total HH Total HH Total HH Less than $5,000 88 1% 78 1% 166 2% $5,000 to $9,999 17 <1% 45 <1% 62 1% $10,000 to $14,999 55 1% 149 1% 204 2% $15,000 to $19,999 64 1% 93 1% 157 2% $20,000 to $24,999 143 1% 60 1% 203 2% $25,000 to $34,999 294 3% 112 1% 406 4% $35,000 to $49,999 297 3% 104 1% 401 4% $50,000 to $74,999 707 7% 134 1% 841 8% $75,000 to $99,999 655 6% 193 2% 848 8% $100,000 to $149,999 1,733 16% 232 2% 1,965 18% $150,000 or more 5,069 47% 390 4% 5,459 51% Total Households 9,122 85% 1,590 1 15% 10,712 100% Median Income $166,602 $77,926 $155,182 October 2014 S A� R A� HOUSING NEEDS ANALYSIS Source:American Community Survey 2007-2011 The California Department of Housing and Community Development (HCD) calculates an annual median family income (MFI), with reference to the U.S. Department of Housing and Urban Development (HUD), for the purpose of determining eligibility. The State of California uses five income categories to determine housing affordability based on the MFI. Table 2-15 shows the income ranges for each income category based on the 2013 State Income Limits for Santa Clara County. Table 2-15. Income Limits by Category Percent of Income limits County for Number of Persons in a Household Median Extremely Low Income 1-Person 2-Person 3-Person 4-Person 5-Person Income _<30% $22,300 $25,500 $28,650 Very Low $31,850 $34,400. Income 31%- 50% $37,150 $42,450 Low $47,750 $53,050 $57,300 Income 51%-80% $59,400 $67,900 $76,400 Moderate $84,900 $91,650 Income 81%- 120% $88,600 $101,300 $113,950 Above Moderate $126,600 $136,750 Income > 120% >$88,600 1 >$101,300 >$113,950 >$126,600 >$136,750 Source:California Department of Housing and Community Development,State Income Limits 2013 According to the 2006-2010 CHAS database developed by HUD, nearly three-quarters of households in Saratoga earned above moderate incomes but some disparity existed between owner and renter households. Nearly 80 percent of owner households had above moderate incomes. Less than half of renter households had above moderate incomes. Owner households also had a much smaller proportion in the very low income classification (10%) compared to renter households (34%). Table 2-16 shows the proportion of households in each income level by tenure. Table 2-16. Household Income Level by Tenure Owner Occupied Renter Occupied Total Occupied Units Very Low Income Number Percent Number Percent Number Percent :550%of AMI 870 10% 545 34% 1,415 14% Low Income 50-80% 304 3% 90 6% 394 4% Moderate 80 to 120% 740 8% 235 15% 975 9% Above Moderate 120%+ 6,940 78% 730 46% 7,670 73% Total Occupied 8,854 100% 1,600 100% 10,454 100% October 2014 ---- f I 1�) ! HOUSING NEEDS ANALYSIS 1 S A RAT Source:CHAS 2006-2010(CHAS based on ACS),via ABAG Data for Bay Area Housing Elements In 2011, Saratoga had the third highest median household income in the County, as shown in Table 2-17. At $155,182, Saratoga's median household income was nearly twice the countywide median household income. Table 2-17. Countywide Median Household Income in 2011 Median Household Income Los Altos Hills $218,077 Monte Sereno $181,719 Saratoga $155,182 Los Altos $151,856 Cupertino $124,825 Los Gatos $122,875 Palo Alto $122,532 Milpitas $94,589 Morgan Hill $94,301 Sunnyvale $93,292 Mountain View $91,446 Santa Clara $89,004 Campbell $82,687 San Jose $80,764 Gilroy $75,483 Santa Clara County Total I $89,064 Source:American Community Survey 2007-2011,via ABAG Data for Bay Area Housing Elements The annual incomes of many that serve the community fell well below Saratoga's median income. The 2013 California Occupational Employment Statistics, compiled by the California Employment Development Department, lists the average salaries by occupations. The salaries of vital service occupations, such as home health aides, elementary school teachers and firefighters, were below the county-wide median income level. More options for affordable workforce housing would be needed for those employed in Saratoga that cannot afford to live in the community they serve. With the average rent of a 1-bedroom apartment at nearly $2,000 and a 2-bedroom apartment at nearly $3,200 in 2014 (craigslist.com rental survey 2/18/2014 and 3/14/2014), workers in lower income occupations may encounter difficulty in finding affordable rental units. Table 2-18 shows the occupational salaries in the San Jose, Sunnyvale and Santa Clara metropolitan statistical area. October 2014 SARAT 1A I!I!/MIIIII. Table 2-18. Bay Area Wages for Select Occupations - 2013 Max. Monthly Very Low Income Hourly Annual Affordable <$45,250 - 2 person household Wage Income Housing Cost Waiters and Waitresses $10.88 $22,637 $566 Home Health Aide $11.20 $23,297 $582 Restaurant Cooks $12.68 $26,370 $659 Retail Salespersons $12.82 $26,660 $667 Security Guards $15.98 $33,249 $831 Nursing Assistants $17.13 $35,635 $891 Max. Monthly Low Income Hourly Annual Affordable ($45,251 - $67,900 - 2 person household) Wa a Income Housing Cost Pharmacy Technicians $23.44 $48,752 $1,219 Medical and Clinical Laboratory Technicians $26.28 $54,662 $1,367 Tax Preparers $26.77 $55,690 $1,392 Architectural and Civil Drafters $30.04 $62,483 $1,562 Executive Secretaries and Admin. Assistants $31.46 $65,439 $1,636 Paralegals and Legal Assistants $31.69 $65,904 $1,648 Max. Monthly Moderate Income Hourly Annual Affordable $67,900 - $101,300 - 2 person household Wa a Income Housing Cost Elementary School Teachers $69,192 $1,730 Real Estate A encs $38.10 $79,238 $1,981 Accountants and Auditors $41.78 $86,903 $2,173 Fire Fighters $42.19 $87,757 $2,194 Physical Therapists $45.75 $95,159 $2,379 Computer Programmers $47.47 $98,734 $2,468 Source:2013 California Occupational Employment Statistics-San Jose-Sunnyvale-Santa Clara MSA (County:Santa Clara) *Income categories based on two person household with single wage earner *Maximum affordable housing cost based on standard of 30%of income on housing,including rent/mortgage,utilities, taxes,insurance, HOA fees 4. Housing Inventory and Market Conditions This section describes the housing stock and market conditions in the city of Saratoga. By analyzing past and current housing trends, future housing needs can be projected. October 2014 �iiti ur �% S A R_AT_? .,,;A HOUSING NEEDS ANALYSIS a. Housing Stock Profile According to the 2000 U.S. Census and the State Department of Finance, 2 percent of all housing units in Santa Clara County are within Saratoga's boundaries. The city had 10,667 housing units in 2000. The housing stock grew to 11,123 units in 2010. Table 2-19 summarizes the number of housing units from 2000-2010. Table 2-19. Number of Housing Units in Saratoga and Santa Clara County Saratoga as a Percent of Saratoga Santa Clara County County Units 2000 10,667 579,329 2% 2010 1 11,123 631,920 2% Source:Census 2000 and DOF 2010,via ABAG Data for Bay Area Housing Elements Thirty-eight units were approved between 2007 and 2013: 20 units were in the above- moderate income level, 5 were moderate income and 13 were low income. Fourteen additional units were anticipated to be approved by June 30, 2014: 10 in the above moderate income level, 2 moderate income and 2 low income. Table 2-20. RHNA Housing Achievements Income Levels 2007- New Residential Structure Total RHNA 2014 Building Permits Issued in: Achievements RHNA 2007-2013 Est. 2014 Goal through June 30, 2014 Extremely Low* 45 0 0 0 0-30% AMI Very Low* 45 0 0 0 31-50% AMI Low 68 13 2 15 51-80% AMI Moderate 77 5 2 7 81-120% AMI Above Moderate 57 20 10 30 >120%AMI Totals 292 38 14 52 Source:City of Saratoga During the 2007-2014 period, eighteen new second units were constructed. Thirteen of these units were deed restricted and available for Low Income households. The other five second units were non-deed restricted and available to Moderate Income households. During the first half of 2014 the City has estimated that an additional two deed restricted units will be permitted and another two non-deed restricted units will be permitted. October 2014 SARAT A A survey (Craigslist May 9, 2014 & May 20, 2014) of second unit rentals in Saratoga and surrounding cities showed rents ranging from $850 to $2,000. The median rent for a 1- bedroom unit was $1,600 and the median rent for a studio was $1,360. These rents are in the range of Very Low to Moderate affordability for Santa Clara County. Based on feedback from owners of second units, City staff understands that a large percentage of second units are occupied rent free by family members or domestic workers. While the City does not maintain records on rents for second units other than deed restricted units, surveys done in San Mateo County for the cities of Woodside, Portola Valley, Los Altos Hills and Hillsborough indicate that between 62 and 74 percent of all second units are available to very low or extremely low income households. These cities are demographically similar to Saratoga. In Saratoga, the majority of recently constructed second units have utilized the floor area and site coverage bonus provisions which require that the unit be deed restricted for rent to below market rate households. Since 2001 the City estimates that there were 41 second dwelling units constructed, of those units 20 were deed restricted. Most building permits in the city were issued for remodels and additions to existing single-family dwellings. During the 2007-2014 planning period, 127 new homes were built including replacements of existing homes. An additional, 22 second dwelling units were built during the planning period. This represents 51 percent of the total 292 housing units planned for during the 2007-2014 Housing Element cycle. i. Unit Size In 2011, the most common type of renter-occupied units were 1-bedroom units. The most common types of owner-occupied units were 3-bedroom and 4-bedroom units. These were also the most common types of housing units overall. Table 2-21 summarizes the distribution of unit size by tenure in 2011 . Table 2-21. Unit Size by Tenure Owner Renter Total Units Number Percent Number Percent Number Percent Studio 0 0% 120 8% 120 1% 1 bedroom 9 <1% 447 28% 456 4% 2 bedrooms 338 4% 271 17% 609 6% 3 bedrooms 2606 29% 389 25% 2,995 28% 4 bedrooms 4424 49% 156 10% 4,580 43% 5 or more bedrooms 1,745 19% 207 13% 1 1,952 18% Total 9,122 100% 1590 100% 10,712 100% Source:American Community Survey 2007-2011,via ABAG Data for Bay Area Housing Elements October 2014 LII1 UI SAKAT HOUSINGA ii. Unit Type Single-family homes constitute the majority of the city's housing stock. In both 2000 and 2010, the combined total of single-family attached and detached units made up more than 90 percent of the housing stock in Saratoga. Table 2-22 presents the proportional distribution of the housing stock. One notable change between 2000 and 2010 was the increasing number of multiple family dwellings that were constructed. Table 2-22. Housing Inventory by Unit Type 2000 2010 Number Percent Number Percent SF detached 9,551 90% 9,356 84% SF attached 561 5% 760 7% 2-4 units 197 2% 355 3% 5+ units 351 3% 652 6% Mobile Homes 0 0% 0 0% Other 7 <1% 0 0% Total Housinq Units 10,667 100% 11,123 100% Source:Census 2000 and DOF 2010,via ABAG Data for Bay Area Housing Elements As the predominant housing type in Saratoga, single-family units comprised the majority of owner-occupied units and a significant proportion of renter-occupied units. Owner-occupied housing units are predominately single-family detached, comprising 93 percent of all owner- occupied units. Single-family detached units also made up the majority of renter- occupied units (38 percent). The largest proportion of renter-occupied housing units were multifamily complexes with 5 or more units, which comprised 43 percent of renter-occupied units. Table 2-23. Unit Type by Tenure Percent of Percent of Percent of Owner Units Renter Units Total Units Single-family, detached 93% 38% 85% Single-family, attached 5% 10% 6% Multi-family 2-4 units 1% 9% 3% Multi-family5+ units 1% 43% 7% Mobile home of other 0% 0% 0% Total 100% 100% 100% Source:American Community Survey 2007-2011 _—.._ October 2014 S A RAT ,�;��„AHOUSING NEEDS ANALYSIS b. Tenure Approximately 86 percent of Saratoga's housing units were owner-occupied and 14 percent were renter-occupied in 2010. As shown in Table 2-24, the percentage of owner-occupied units in Saratoga was comparatively higher than Santa Clara County and California. Table 2-24. Occupied Units by Tenure Owner Renter Total Number Percent Number Percent Number Percent' -Saratoga 9,258 86% 1,476 14% 10,734 100% Santa Clara County 348,298 58% 255,906 42% 604,204 100% Source:Census 2010 c. Vacancy Rates Vacancy rates are an indicator of housing supply and demand. Low vacancy rates influence greater upward price pressures; a higher vacancy rate indicates downward price pressure. A vacancy rate of five percent for rental housing and two percent for owner housing is generally considered healthy in regards to the balance between supply and demand. In 2010, the citywide residential vacancy rate in Saratoga was 3.5 percent. The renter vacancy rate was 4.3 percent, and the homeowner vacancy rate was 0.7 percent. Both rates have increased since 2000 but are still lower than the benchmark for healthy vacancy rates. These lower vacancy rates suggest that competition for units may place upward pressure on rents and for-sale housing prices. Table 2-25 summarizes vacancy rates in Saratoga from 2000 to 2010. Table 2-25. Vacancy Rates Owner Rental ClItywide Total 2000 0.3 3.4 1.9 2010 0.7 4.3 3.5 Source:Census 2000 and 2010; Dept.of Finance E8 2000,Table 2;Dept.of Finance E5 2010,Table 2 d. Age of Housing Stock The age of a housing unit is often an indicator of housing conditions. In general, housing that is 30 years or older may exhibit need for repairs based on the useful life of materials. Housing over 50 years old is considered aged and is more likely to exhibit a need for major repairs. The U.S. Census provided data on the age of t h e housing stock through the 2007-2011 American Community Survey. In Saratoga, 81 percent of housing units were built before 1980 and 32 percent were built before 1960. Table 2-26 provides a summary of housing stock age. October 2014 � � SAI�AT ANEEDS - — Table 2-26. Age of Housing Stock Number Percent 2000- 2009 835 8% 1990- 1999 617 6% 1980- 1989 771 7% 1970- 1979 2,334 21% 1960- 1969 3,074 28% 1950- 1959 2,737 25% 1940- 1949 333 3% 1939 or earlier 455 4% Total 11,156 100% Source:American Community Survey 2007-2011,via ABAG Data for Bay Area Housing Elements e. Housing Conditions Housing is considered substandard when conditions are found to be below the minimum standard of living conditions defined in the California Health and Safety Code. Households living in substandard conditions are considered to be in need of housing assistance, even if they are not seeking alternative housing arrangements, due to the threat to health and safety. In addition to structural deficiencies and standards, the ,lack of infrastructure and utilities often serves as an indicator for substandard conditions. According to the 2007- 2011 American Community Survey 74 units in Saratoga lacked complete plumbing facilities and 140 units lacked complete kitchen facilities. It should be noted that there may be some overlap in the number of substandard housing units, as some units may lack both complete plumbing and kitchen facilities. Table 2-27 summarizes the number of units lacking plumbing or complete kitchen facilities. The age of the city's housing stock can be a valuable indicator of housing conditions. In Saratoga, approximately 80 percent of the housing units were built prior to 1980 and 32 percent prior to 1960. It is expected that housing older than 30 years may require basic repairs and housing older than 50 years is considered "aged" and likely to require more extensive repairs. A spike in home construction occurred in the 1960s when 3,074 homes were built, which translates to 28 percent of the present housing stock. Assessor data indicates that there are 4,124 residences that were built over 50 years ago and have not had a significant remodel. Given the historically high values of homes in Saratoga the vast majority of older homes are maintained in good condition. The City estimates that less than one percent, or approximately 20, of those homes older than 50 years will need some form of rehabilitation during the planning period. The City will continue to utilize code enforcement practices to identify housing in need of rehabilitation and work with property owners to rectify sub-standards housing. =� October 2014 —� HOUSING l'f Uh Table 2-27. Units Lacking Complete Plumbing or Kitchen Facilities Number Percent Lacking Complete Plumbing Facilities 74 1% Lacking Complete Kitchen Facilities 140 1% Total Housing Units 11,156 100% Source:American Community Survey 2007-2011,via ABAG Data for Bay Area Housing Elements f. Housing Costs and Rents This section evaluates housing cost trends in Saratoga. The analysis covers the affordability gap, home price trends, ownership affordability, rental prices and rental affordability. i. Home Price Trends In 2013, the median value for all owner-occupied units in Saratoga was $1,600,000, according to Census and real estate market data. Home values have increased 27 percent since 2000, as shown in Table 2-28. Table 2-29, shows that 84 percent of owner- occupied housing units were valued at $1,000,000 or more. An additional 12 percent were valued at between $500,000 and $999,999. Table 2-28. Median Housing Value Percent Change 2000 2000 2013 2000-2013 2000 dollars 2013 dollars)* 2013 dollars (2013 dollars Saratoga $927,100 $1,260,856 $1,600,000 27% Santa Clara County Total $475,600 $646,816 $645,000 -170 Source:Census 2000 SF3 QT-H6; Dataquick 2013;ABAG Bay Area Consumer Price Index 2013 *Value adjusted to 2013 dollars.According to ABAG Data for Bay Area Housing Elements,CPI in 2000 was 180.2,CPI in 2013 was 245,and as a result CPI percent change was 36% I October 2014 1,117 LII - S A RAT ,.eHOUSING NEEDSANALYSIS Table 2-29. Value of Owner-Occupied Housing Units Number Percent , Less than $100,000 29 <197, $100,000 to$124,999 64 1 $125,000 to$149,999 14 <1% $150,000 to $174,999 65 1 $175,000 to$199,999 11 <1% $200,000 to$249,999 27 <1 To $250,000 to $299,999 67 1 $300,000 to $399,999 28 <% $400,000 to$499,999 81 1% $500,000 to $749,999 284 3% $750,000 to$999,999 796 9% $1,000,000 or more 7,656 84% Total 9,122 100.0% Source:American Community Survey 2007-2011 As shown in Table 2-30, the median sales price for new and resale homes in Saratoga was $1,600,000 for 2013. This represents a 5 percent increase from the median sales price in 2012. The 2013 median sales price in Saratoga was more than double the County median. Table 2-30. Median Sales Price Cou /C /Area Number Sold 2013 Median Price 2012 Median Price Change Saratoga 448 $1,600,000 $1,527,500 5% Alviso 13 $415,000 $370,000 12% Campbell 554 $701,000 $625,000 12% Cupertino 512 $1,200,000 $1,045,750 15% Gilroy 755 $495,000 $415,000 19% Los Gatos 694 $1,257,500 $1,065,000 18% Mil itas 800 $580,000 $435,000 33% Morgan Hill 738 $625,000 $500,000 25% Mount Hamilton 3 $1,180,000 $918,000 29% Mountain View 759 $800,000 $769,250 4% Palo Alto 670 $1,720,000 $1,495,000 15% San Jose 11,050 $570,000 $438,000 30% San Martin 52 $650,000 $580,000 12% Santa Clara 1,214 $635,000 $540,000 18% Stanford 3 $3,450,000 $2,530,000 36% Sunnyvale 1,326 $767,500 $645,000 19% Santa Clara County 20,700 $645,000 $525,000 23% October 2014 S ARAT ii I nnilr . ® B Source: Dataquick DQ News San Francisco Bay Area Home Sales Activity for 2013 Housing prices vary by housing type and the number of bedrooms in a unit. Overall, the median price of a single-family home was more than twice the value of a townhouse or condominium in Saratoga. The median price difference is significant even between single-family homes and condominiums with comparable sizes and the same number of bedrooms. Table 2-31. Saratoga Home and Condominium Sales Price Jan. - Dec. 2013 # Bdrms Units Price Range Median Avg. Unit Avg. Parcel Avg. Year Sold Price Size Size Built Single-Family Homes 2 21 $400,000- $1,265,000 1,450 sf 30,500 1948 $4,250,000 3 118 $163,000-$3,550,000 $1,400,000 2,100 sf 20,030 1960 4 147 $188,500-$4,850,000 $1,840,000 2,850 sf 23,680 1968 5+ 69 $170,000-$12,300,000 $2,097,500 3,510 sf 30,190 1973 _F Total 355 $163,000- $12,300,000 $1,750,000 2,749 K724,130 1965 Condominiums 1 5 $378,000- $410,000 700 sf -- 1975 $419,000 2 34 $312,500- $600,000 1,340 sf 1971 $1,215,000 3 19 $202,000- $850,000 2,000 sf 1980 $1,350,000 Total 58 $202,000- $1,350,000 $631,000 1,500 sf -- 1974 Source: Dataquick Online Real Estate Database ii. Ownership Affordability The Department of Housing and Urban Development (HUD) conducts annual household income surveys nationwide, including Santa Clara County, to determine the maximum affordable payments of households and their eligibility for federal housing assistance. The 2013 median income limit for a four-person household in Santa Clara County was $105,500. Table 2-23 presents affordable home purchase prices for moderate income households. 'r Al The median sales price for homes in 2013 generally exceeded the affordability range for moderate income households, however Oc The Saratogan Condominiums P SARAT HOUSING NEEDS ANALYSIS condominiums were a more affordable alternative to single-family homes. The affordability gap between the maximum affordable purchase price of a moderate income 4-person household and the median single-family home purchase price is $870,000. This gap is more than two times the difference between the affordable price and the median condominium purchase price ($320,000). Although the gap in affordability is still significant for condominiums, it is a more viable option than single family homes, which are out of reach for moderate income households. Table 2-32. 2013 Maximum Affordable Housing Cost (Moderate Income), Santa Clara County Moderate Income 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Affordable Housing Cost (2 persons) (3 persons) (4 persons) (5 persons) Moderate Income Threshold $92,840 $104,500 $116,050 $125,290 (110%County Median) Max. Income Towards Housing @ $32,500 $36,580 $40,620 $43,850 35% Income J Max. Monthly Housing Cost $2,710 $3,050 $3,385 $3,655 October 2014 C1 I) UI SARATQc; A � ��, Ew a a l �i Less Ongoing Monthly Expenses: Utilities ($127) ($139) ($188) ($217) Property Taxes (1.1 affordable housing ($387) ($440) ($485) ($523) price Insurance ($85) ($100) ($115) ($130) HOA Fees & Other ($180) ($180) ($180) ($180) Monthly Income Available for Mortgage $1,931 $2,191 $2,417 $2,605 Supportable Mortgage @ 4.5% interest $381,000 $432,000 $477,000 $514,000 Homebuyer Down payment 10� $42,000 $48,000 $53,000 $57,000 Maximum Affordable Purchase Price $423,000 $480,000 $530,000 $571,000 Saratoga Median Single-Family Price -- $1,265,000 $1,400,000 $1,840,000 Saratoga Median Condominium Price $410,000 $600,000 $850,000 -- Source: Karen Warner Associates. Utility costs based on 2013 Santa Clara County Housing Authority utility allowance schedule for attached units (assumes gas heating,cooking and water heating). iii. Rental Prices As a city where 85 percent of the housing stock consists of single-family detached homes, small affordable apartment rentals are difficult to find. Table 2-33 shows that the number of homes available for rent outnumbered apartments for rent in 2014. This leaves renters with fewer options for affordable apartment rentals. Rents for single-family homes were upwards of $5,000 per month. The average rent for a 3-bedroom home was $4,510, and the rent for a 4-bedroom home was $5,460. In comparison, the average price of a 1 bedroom rental unit was $1,960. A small stock of multifamily units gives renters few choices. Second units offer an affordable alternative to apartment and home rentals. These independent housing units, also known as secondary dwelling units, are located on the same property as a larger primary dwelling unit. A survey of second units in Saratoga and surrounding cities shows rents ranging from $850 to $2,000 and a median rent of $1,500. Table 2-33 highlights the lower rents of second units compared to other rental units. Table 2-33. Saratoga 2014 Rental Survey AvailabNity Rental Range Median Average Apartments and Condominiums 1-bedroom 4 $1,850-$2,300 $1,850 $1,960 October 2014 II) 01 S A RAT HOUSINGr„`°;. ANALYSISNEEDS 2/3-bedroom 5 $2,700 - $2,500 $3,400 $3,170 Single Family Homes 3-bedroom 10 $3,800-$5,950 $4,540 $4,510 4-bedroom 12 $4,200 -$8,500 $4,980 $5,460 5-bedroom 8 $5,500 - $9,250 $8,000 $7,520 Second Unit Dwelling Second Unit 12 $850- $2,000 $1,500 $1,440 Source: Craigslist February 18,2014 and March 14, 2014, Craigslist May 9, 2014 (second units-includes neighboring jurisdictions) According to the 2007-2011 American Community Survey, 37 percent of renter households in Saratoga spent 30 percent or more of their household income on rent in 2011. Twenty percent of households spent 50 percent or more of their household income on rent. Table 2-34 shows the number of households by percentage of household income spent on rent. Table 2- 34. Gross Rent as a Percentage of Household Income Number of Households Percent of Households Less than 10.0 percent 230 15% 10.0 to 14.9 percent 100 6% 15.0 to 19.9 percent 239 15% 20.0 to 24.9 percent 80 5% 25.0 to 29.9 percent 224 14% 30.0 to 34.9 percent 75 5% 35.0 to 39.9 percent 47 3% 40.0 to 49.9 percent 143 9% 50.0 percent or more 325 20% Not computed 127 8% Total 1,590 100% Source:American Community Survey 2007-2011 October 2014 CII} U1��/ iv. Rental Affordability As shown in Table 2-35, the median rents for 1-bedroom apartments were affordable to moderate income households but not low income households. A 1-bedroom unit was affordable to a 2-person moderate-income household, which could pay up to $2,435, after utilities, without exceeding the affordability limit defined as 30 percent of income. With an affordable limit of $1,600, low income renter households would have to spend more than 30 percent for their income. Although the affordability gap for low income renters was $150 for a 1-bedroom apartment, the gap greatly widens for units with 2- bedrooms or more. The difference between the median rent for a 2-bedroom unit and affordable rent for a low-income household was $1,600. In addition to the low supply of 1-bedroom units, households face the challenge of finding affordable rental units. Units that have more than one bedroom would no longer be affordable to low income or moderate income households. Rental prices for larger units, namely single-family homes, exceeded affordable levels for moderate income households. Single-family homes make up a large supply of 3- bedroom rental units. The median rent for a 3-bedroom home was $4,540, but a 4- person moderate income household could only spend up to $3,037 on housing until housing was no longer considered affordable. This affordability gap between the median price and an affordable rental price was $1,500. To rent a median priced 3- bedroom home in Saratoga, moderate income households would have to spend more than 30 percent of their income on rent. Table 2- 35. 2013 Maximum Affordable Rents, Santa Clara County Maximum Affordable Rent After Utilities Allowance2 Income lever 1 Bedroom 2 Bedroom 3 Bedroom (2 person) (3 person) (4 person) Very Low Income $964 $1,085 $1,198 Low Income $1,600 $1,801 $1,995 Moderate Income $2,435 $2,739 $3,037 Saratoga Median Rents $1,850 $3,400 $4,540 Source:Source: Karen Warner Associates I Income levels based on State HCD published Income Limits for 2013. 2 Utility costs based on 2013 Santa Clara County Housing Authority utility allowance schedule for low-rise multi-family units (gas heating, cooking and water heating; assumes monthly refuse service included in rent): $83 for studios, $97 for 1 bedrooms,$109 for 2 bedrooms,and$128 for 3 bedrooms. October 2014 w/ l_I 17 lel - S A R A T P . A B. Housing Needs This section provides an overview of existing housing needs in Saratoga. It focuses on the following categories: • Household overpayment; • Overcrowding; • Estimated new construction; • Replacement of units lost; and • Special needs groups. 1. Households Overpaying for Housing Overpayment is defined as households paying more than 30 percent of their gross income on housing related expenses, including rent or mortgage payments and utilities. High housing costs can cause households to spend a disproportionate percentage of their income on housing. This may result in repayment problems, deferred maintenance or overcrowding. Overpayment is an issue affecting owners and renters. Thirty-two percent of all households were owners that overpaid for housing. As shown in Table 2-36, housing overpayment not only affected lower income households but had a noticeable impact on above moderate income households as well. With median home values and market prices exceeding $1 million, housing payments presented a burden for many households. Table 2-37 shows overpayment among renter households. About 5 percent of all households were renters who overpaid for housing. Renter households represent a small proportion of all households in Saratoga, so overpayment is a more significant issue than is represented by the data. Table 2-36. Owner Household Overpayment by Household Income Level Owner Households HH Pa ing 30-50% HH Paying >50% Percent of Percent of Number Total HH* Number Total HH* Very Low Income <_50%of HAMFI 85 1% 445 4% Low Income 50-80%of HAMFI 39 <1% 105 1% Moderate 80 to 120%of HAMFI 125 1% 160 2% Above Moderate 120%+ of HAMFI 1,740 17% 655 6% Total Overpayment 1,989 19% 1,365 13% Source:CHAS 2006-2010(CHAS based on ACS),via ABAG Data for Bay Area Housing Elements *Total Household count is 10,470 from CHAS 2006-2010,via ABAG data for Bay Area Housing Elements October 2014 SRAT ' A ANALYSIS Table 2-37. Renter Household Overpayment by Household Income Level Renter Household HH Pa in 30-50% HH Paying >50% Percent Percent of Total of Total Number HH* Number HH* Very Low Income _<50%of HAMFI 130 1% 225 2% Low Income 50-80%of HAMFI 1 <1% 0 0% Moderate 80 to 120%of HAMFI EE8]5 1% 15 <1 ToAbove Moderate 120%+ of HAMFI 1% 10 <1% Total Overpayment 315 3% 250 2% Source:CHAS 2006-2010(CHAS based on ACS),via ABAG Data for Bay Area Housing Elements *Total Household count is 10,470 from CHAS 2006-2010,via ABAG data for Bay Area Housing Elements 2. Overcrowding An Overcrowded Housing Unit is defined by the U.S. Census Bureau as a housing unit occupied by more than one person but less than 1.5 persons per room (excluding bathrooms, kitchen, hallway and closet space). A Severely Overcrowded unit is defined as a unit occupied by more than 1.5 persons per room. Overcrowding can affect public facilities and services, reduce the quality of the physical environment and create conditions that contribute to deterioration. Overcrowding is not a significant issue in Saratoga. Table 2-38 summarizes overcrowding in Saratoga. According to CHAS 2006-2010 data, the only overcrowding recorded was for 15 severely overcrowded renter units. Table 2-38. Overcrowded Households Owner Renter Percent Percent of Total of Total Occupied Occupied Number Units Number Units Overcrowded (greater than 1.0 but less than or equal to 1.5 persons per room) 0 0.0% 0 0.0% Severely Overcrowded reater than 1.5 persons per room 0 0.0% 15 0.1% Source:CHAS 2006-2010(CHAS based on ACS),via ABAG Data for Bay Area Housing Elements *Total Occupied Units is 10,470 according to CHAS 2006-2010 3. Units At-Risk of Conversion The State Housing Element law requires local governments to prepare an inventory of all October 2014 iii. ui S A KAT P . Oft"�� T � r -5 assisted multi-family rental housing complexes that are eligible to be converted from low income to market-rate units. Assisted housing units are multifamily units that have received government assistance (any combination of rental assistance, mortgage insurance, interest reductions, and/or direct loan programs). The conversion may be triggered by termination of a rent subsidy contract, mortgage prepayment, or expiration of use restrictions. The inventory must cover a ten-year evaluation period following the statutory due date of the Housing Element. Saratoga has two rent-restricted properties totaling 170 units. These include Fellowship Plaza with 150 units and Saratoga Court with 20 units. Both properties provide affordable housing for seniors and are owned and managed by non-profit housing providers and are thus considered at low risk of conversion to market rate. Analysis of at-risk unit conversions is covered in Appendix B. 4. 2014-2022 Regional Housing Needs Allocation The Association of Bay Area Governments (ABAG) is responsible for allocating housing needs to each jurisdiction in its region, including Saratoga. A local jurisdiction's "fair share" of regional housing need is the number of additional housing units needed to accommodate the forecasted growth in the number of households, to replace expected demolitions and conversion of housing units to non-housing uses, and to achieve a future vacancy rate that allows for healthy functioning of the housing market. The allocation is divided into five income categories: Extremely-Low, Very-Low, Low, Moderate, and Above-Moderate. The allocation is further adjusted to avoid an over-concentration of lower-income households in any one jurisdiction. Table 2-39. Regional Housing Needs Allocation Extremely Very Above Low Income Low Low Moderate Moderate 0-30%* 31-50% 51-80% 81-120% 120%+ Total Saratoga 74 73 95 104 93 439 Source:ABAG Data for Bay Area Housing Elements *It is assumed that 50 percent of the RHNA Very Low Income allocation qualifies as Extremely Low Income. 5. Special Needs Groups Certain segments of the population have more difficulty finding decent, affordable housing due to special needs. This section identifies the needs for elderly persons, large households, female-headed households, persons with disabilities, homeless persons and farmworkers. In addition to the data from the 2010 U.S. Census, this section uses data from the 2006- 2010 Comprehensive Housing Affordability Strategy (CHAS) published by HUD. The CHAS provides information related to households with housing problems, including overpayment, overcrowding and/or without complete kitchen facilities. The CHAS data October 2014 t-M of S A IAT ;.�„' s — — -- - are based on Census data files and mostly comprise a variety of housing need variables split by HUD-defined income limits and HUD- specified housing types. a. Elderly Persons Elderly persons are considered a special needs group because they are more likely to have fixed incomes. Elderly persons often have special needs related to housing location and construction. Because of limited mobility, elderly persons typically need access to public facilities (i.e. medical and shopping) and public transit. In terms of housing construction, elderly persons may need ramps, handrails, elevators, lower cabinets and counters, and special security devices to allow for greater self-protection. The U.S. Census reports the characteristics of Saratoga's senior population and households. Nearly 6,100 residents, or 20 percent of the population, were age 65 or older. Senior households, which are headed by a senior resident, made up 32 percent of Saratoga's households. The tenure of senior households, shown in Table 2-40, consists of 15 percent renters and 85 percent owners. Table 2-40. Senior Households by A e Group and Tenure Owner Renter Total Percent of Percent of Percent of Number Senior HH Number Senior HH Number Senior HH 65 to 74 years 1,491 43% 11747%1,608 47% 75 to 84 years 1,023 30% 219 6% 1,242 36% 85+ years 417 12% 186 5% 603 17% Total 2,931 85% 522 15% 3,453 100% Source:Census 2010,via ABAG Data for Bay Area Housing Elements The HCD Area Median Income for Santa Clara County was $105,500 in 2013. Based on the 2007-2011 American Community Survey data shown in Table 2-41, 21 percent of senior households earned less than $30,000, and therefore fell within the Extremely Low Income category. Within the Very-Low and Low Income categories Twenty-six percent earned $30,000 to $74,999. The 2007-2011 American Community Survey also reports that 35 percent of senior households were living alone, which may present additional challenges of housing affordability for those with low and fixed incomes. Table 2-41. Senior Income Distribution (Householder Over 65) Approximate Income Income Level Number Percent Income under$30,000 Extremely Low 682 21% $30,000 to $49,999 Very Low 312 10% $50,000 to $74,999 Low 529 16% $75,000 to $99,999 Low to Moderate 440 13% More than $100,000 Moderate and Above 1,321 40% October 2014 '� I _I I . L,I 0-i ', 0--, ° 64fto i�'h"tt 1F S A RAT „�r„A. Total 3,284 100% Source:American Community Survey 2007-2011,via ABAG Data for Bay Area Housing Elements The senior poverty rate as a whole was comparable to the poverty of the city's entire population. However, poverty rates for seniors under 75 and seniors over 75 were very different. About 1 percent of seniors between ages 65 and 74 fell below the poverty level, which was less than half of the poverty rate for the city's entire population. However, more than 6 percent of seniors age 75 and over fell below the poverty level, which was nearly double the rate for the city's population as a whole. Poverty rates are summarized in Table 2-42. Supportive housing policies and affordable housing options can address some of the difficulties that aging seniors face, including housing maintenance needs, physical disabilities and living on fixed incomes. Table 2-42. Poverty Rates among Senior Age Groups Poverty Rate WINn Age Groups 65 to 74 1.3% 75+ 6.4% All Seniors 3.8% Total Population 3.4% Source:American Community Survey 2007-2011,via ABAG Data for Bay Area Housing Elements Affordable housing for seniors continues to be a need in Saratoga. Maintaining a supply of affordable units is crucial in meeting the needs of low income seniors. The U.S. Census Bureau provides information on the number of persons with disabilities of varying types and degrees. The types of disabilities included in the Census are: • Sensory: Blindness, deafness, or a severe vision or hearing impairment. • Physical: A condition that substantially limits one or more basic physical activities, such as walking, climbing stairs, reaching, lifting, or carrying. • Mental: A condition lasting 6 months or more that made it difficult to perform certain activities including learning, remembering, or concentrating. • Self-care: A condition lasting 6 months or more that made it difficult to perform certain activities including dressing, bathing, or getting around inside the home. • Go-outside-home: Only asked for population 16 and older; a condition lasting 6 months or more that made it difficult to perform certain activities including going outside the home alone to shop or visit a doctor's office. • Employment: Only asked for the population aged 16 to 64; a condition lasting 6 months or more that made it difficult to perform certain activities including working at a job or business. In 2011, about 15 percent of the elderly population had one type of disability. As shown in Table 2-43, at least 14 percent had two or more types of disability. With October 2014 llfl VI SARAT A }. !I disabilities becoming a greater concern as senior residents age, supportive services and housing environments will be in greater demand. Table 2-43. Residents 65 and Over with at Least One Disability Percent d Persons 65 Number Years and Over* With One Type of Disability862 150 With Two or More Types of Disability822 14% Total with a Disability 1684 29% Source:American Community Survey 2009-2011 *Total population 65 and over is 5,884,or 3089 (65 to 74 years) plus 2795(75+years) according to ACS 2009-2011 figures. A number of city and countywide resources serve senior residents in Saratoga. The Saratoga Area Senior Coordinating Council (SASCC) serves the needs of seniors in Saratoga and sponsors two key programs: the Saratoga Senior Center and the Adult Care Center. The Saratoga Senior Center hosts a variety of programs and activities including education, art, physical fitness, entertainment and social events. In addition, the Saratoga Senior Center provides services in health, finance, legal assistance and library lending. The Adult Care Center provides structured activity programs for seniors ages 60 and older with physical and cognitive limitations who are unable to use the services of the Saratoga Senior Center. Seniors in Saratoga have access to several residential care facilities. As of April 2014, the Community Care Licensing Division of the California Department of Social Services listed five providers of residential care facilities for seniors in Saratoga. The Saratoga Home for the Elderly, April Garden Villa of Saratoga and Bon Homie Saratoga each have the capacity for 5-6 persons. Our Lady of Fatima Villa serves up to 74 persons. The largest facility is the Saratoga Retirement Community (Fellowship Plaza), which can accommodate 418 persons. Dementia care is available at Saratoga Retirement Community and at Cedar Creek Alzheimer's and Dementia Care Center in nearby Los Gatos. Health care services are available within and around Saratoga. In addition to a number of physicians, dentists, optometrists and chiropractors working in Saratoga, EI Camino Hospital of Los Gatos offers a comprehensive set of health services. Saratoga Walk-In Clinic offers urgent care and provides family practice care. In-home care is available to seniors through several organizations with offices near Saratoga. Through in-home care, seniors have an opportunity to remain at home with the assistance of caregivers who help with daily activities. The Home Instead Senior Care office in Campbell and the Visiting Angels Senior Homecare office in San Jose are local options that connect seniors with caregivers. The charitable foundation Health Trust has operated various programs and provided services to Santa Clara County residents. The local Meals on Wheels program is one of the programs operated under Health Trust that serves Santa Clara County residents who - October 2014 LYSIS SARAT �3A _ NEEDSHOUSING . are physically limited and homebound, including seniors and persons with disabilities. Heath Trust programs offer access to high quality, affordable health services for seniors through their Healthy Aging Initiative. b. Large Households State housing law defines large households as households having five or more persons living within the same household. Large households are considered a special needs group because they require homes with more bedrooms. In 2010, there were 1,033 households in Saratoga with at least five persons, representing 10 percent of the total households in the city. Large owner households represented 8 percent of all households and large renter households represented 1 percent of all households. One of the unique facets of Saratoga's population that is not clearly reflected in the available data, is the number of multi-generational households. Anecdotally, this appears to be most true of new residents among the growing Asian population. Table 2-44 shows the number of large owner and renter households. Table 2-44. Large Households by Tenure Owner Renter Total Percent of Percent of Percent of Number Total HH* Number Total HH* Number Total HH* 5 Persons 615 6% 96 1% 711 7% 6 Persons 221 2% 28 <1% 249 2% 7 Persons 67 1% 6 <% 73 1%_ Total Large Households 903 8% 130 1% 1033 10% Source:Census 2010,via ABAG Data for Bay Area Housing Elements *Total Households is 10,734 according to the 2010 Census. Overcrowding should not be a significant problem for most Y. households due to the large supply of s t == 4 or more bedroom housing units in Saratoga. An "Overcrowded" unit is , 1r � w one occupied by 1.01 persons or more ;` per room and a "Severely Overcrowded" unit is one occupied by more than 1 .5 persons per room, as stated by HCD. The 2007-2011 American Community Survey showed Hillside Residence no "Overcrowded" households and 20 "Severely Overcrowded" households in Saratoga. October 2014 Carr or S A RAT P ,.�.,'°;. HOUSING NEEDS ANALYSIS The number of units with 3 or more bedrooms, and even those with 5 or more bedrooms, is much greater than the number of large households, as shown in Table 2-45. Table 2-45. Units by Number of Bedrooms Owner Renter Total 3 or More Bedrooms Number of Units 8,775 752 9,527 Large Households 5 or morepersons) 903 130 1,033 Ratio of Units to Large Households 9.7 5.8 9.2 5 or More Bedrooms Number of Units 1,745 207 1,952 Large Households 5 or more persons 903 130 1,033 Ratio of Units to Large Households 1.9 1.6 1.9 Source:American Community Survey 2007-2011 via ABAG Data for Bay Area Housing Elements c. Female-Headed Households Female-headed households are a special needs group due to the comparatively low rates of homeownership, lower incomes and high poverty rates they experience. With limited resources available, many female-headed families have a need for affordable housing in close proximity to services such as schools, day care and recreation programs. According to the 2007-2011 American Community Survey, female-headed family households represented 5.2 percent of all households in Saratoga. Female-headed families with children accounted for 2.8 percent of all households. Table 2-46 shows the change in female-headed households between 2000 and 2011. Table 2-46. Female-Headed Households 2000-2011 2000 2011 Difference Percent of Percent of Number Percent Number I Total HH Number Total HH Chane Change Female Householder Living Alone 975 9% 1,167 11% 192 20% Female Householder Not Living Alone 165 2% 99 1% -66 -40% Female-Headed Family With Children Under 18 257 3% 262 2% 5 2% ---� October 2014 l I I ll l 04th- i T" S A RAT Female-Headed Family With No Children Under 18 260 3% 302 3% 42 16% Total Female Households 1,657 16% 1,830 17% 173 10% Total Households 10,450 100% 10,712 100% 262 3% Source:Census 2000 and American Community Survey 2007-2011 As shown in Table 2-47, 7.8 percent of female-headed households in Saratoga were below poverty level in 2011. Of female-headed households with children, 14.3 percent were below the poverty level. Table 2-47. Female Headed Households below Poverty Level Percent Families Below Poverty Level 2.1% Female Headed Households Below Poverty Level 7.8% Female Headed Households with Children under 18 Below Poverty Level Source:American Community Survey 2007-2011,via ABAG Data for Bay Area Housing Elements In times of need, emergency shelters and transitional housing can provide one source of support for women facing heavy financial burden, domestic abuse or other instabilities in their lives. During their stay, they are given opportunities to regain physical and emotional health. Financial burden may also be reduced during the stay, which allows them to more easily transition back to financial and housing stability. Although there are no shelters for women in Saratoga, ten shelters that provide a variety of services to women are located within 10 miles of Saratoga, according to the Women's Shelters California directory (www.womanshelters.org). d. Persons with Disabilities Persons with disabilities often spend a disproportionate amount of income to obtain housing. Access and affordability are the primary challenges for persons with disabilities. Access, both within the home and to/from home, is important for persons with disabilities. This group often requires specially designed housing units. Persons with disabilities may require residential care facilities or be located near specialized services. Housing locations near public facilities and public transit are important for this special needs group. The U.S. Census Bureau provides information on the number of persons with disabilities of varying types and degrees. Table 2-48 shows the number of Saratoga residents over the age of 5 with disabilities in 2011. According to the 2007-2011 American Community Survey, 8 percent of Saratoga residents reported having at least one type of disability. A more detailed description of disability types among persons with disabilities is shown in Table 2-49. October 2014 CITY UI SARAT HOUSING NEEDS ANALYSIS r Table 2-48. Persons with at Least One Disability Percent of Total Number Population Persons 5-17 with at Least One Disability 63 <1% Persons 18-64 with at least One Disability 460 2% Person 65 and Older with at Least One Disability 1684 6% Total Persons with at Least One Disability 2,207 8% Total Persons without a Disability 26,733 92% Total Population 28,940 100% Source:American Community Survey 2009-2011,via ABAG Data for Bay Area Housing Elements Table 2-49. Persons Ages 18-64 with Disabilities by Type Not in labor Employed Unemployed Force Total With A Disability* 143 19 298 460 With A Hearing Difficulty 123 0 59 182 With A Vision Difficulty 0 0 67 67 With A Cognitive Difficulty 0 19 125 144 With An Ambulatory Difficulty 20 19 155 194 With A Self-Care Difficulty 4 0 91 95 With An Indep. Living Difficult 0 0 157 157 No Disability 11,505 1,019 4,088 16,612 Total 11,648 1,038 4,386 17,072 Source:American Community Survey 2009-2011,via ABAG Data for Bay Area Housing Elements *Person may have more than one type of disability Persons with developmental disabilities have special housing needs. The State defines developmental disability as one that originates before an individual becomes 18 years old, or can be expected to continue indefinitely, and presents a substantial disability for that individual. Conditions include mental retardation, cerebral palsy, epilepsy, and autism. Table 2-50 shows developmental disabilities among Saratoga residents as surveyed in 2013. Table 2-50. Persons with Developmental Disabilities in Saratoga Mental Cerebral Retardation Autism Pals E ile sy Other i October 2014 l I I 1 "A' f+2�t�3 Age 0 to 3 34 43 11 9 4 Age 3 to 17 88 26 28 22 14 Age 18 to 59 6 6 1 0 3 Age 60 + 4 0 2 2 2 Total 132 1 75 42 33 23 Source:San Andreas Regional Center 2013 *Note:A person may have more than one disability In Santa Clara County, nearly 74 percent of persons with developmental disabilities lived with a parent or guardian. Almost 16 percent lived in a community care facility. Table 2-51 shows living arrangements for persons with developmental disabilities in Santa Clara County. The lack of financial resources is an obstacle to independent living for persons with developmental disabilities. Living in an integrated community setting is crucial in promoting long-term health and stability. About 7 percent of persons with development disabilities lived independently in Santa Clara County. The provision of safe, affordable housing with access to supported living services can improve the viability of independent living. Table 2-51. Living Situation of Persons with a Developmental Disability in Santa Clara County Santa Clara County Number Percent At home with Parent or Guardian 6,422 74% Community Care Facility 1,379 16% Independent Living 640 7% Intermediate Care Facility 176 2% SNF 24 <1% Other 72 1% Total 1 8,713 1 100% Source:State of California,Department of Developmental Services,"Quarterly Consumer Characteristics Report Index by County of Physical Presence for the end of June 2013",via ABAG Data for Bay Area Housing Elements. Residential facilities and services for persons with disabilities are largely provided at the county- and regional level. The Community Care Licensing Division of the California Department of Social Services has recorded no providers of residential care facilities for persons with disabilities in Saratoga. However, residential care facilities are available throughout the Santa Clara County. Rental subsidies are also available through the Housing Authority of Santa Clara County. The Silicon Valley Independent Living Center (SVILC) serves Santa Clara County residents who have disabilities. The nonprofit organization provides services related to information, referrals, peer support, independent living skills training, housing and assistive technology. SVILC maintains a database of accessible and subsidized housing to help its clients find affordable housing in the County. Resources for persons with disabilities are provided at the regional level. e. Homeless Population October 2014 S A RAT P Air Enumeration of the homeless population is difficult because of the transient nature of this population and the existence of "hidden homeless" or persons that move among temporary housing situations. The 2013 Santa Clara County Homeless Census and Survey identified 35 homeless individuals in Saratoga. The 2013 Census and Survey comprised a point-in-time count of homeless and a series of one-on-one interviews with about 850 homeless individuals. Thirty- five unsheltered homeless and no sheltered homeless residing in Saratoga were reported in 2013. In comparison, 7 unsheltered homeless and no sheltered homeless were reported in 2011. The increase of homeless persons suggests that there may be a growing need for supportive programs to prevent homelessness and help individuals find permanent housing. Emergency shelters, transitional housing and permanent housing are needed to address the countywide need of available shelters for the large number of unsheltered homeless. The 2013 Homeless Census found that 74 percent of homeless in the County were unsheltered. A total of 7,631 homeless individuals were identified in the survey, of which 5,674 individuals were unsheltered. Of the 26 percent who were sheltered, 12 percent stayed at emergency shelters, 13 percent occupied transitional housing and less than 1 percent were in the Safe Haven program. Shelter stay was not guaranteed to homeless individuals. The 2013 Homeless Census reported that 27 percent of respondents had been turned away from an emergency shelter within the prior 30-day period and two-thirds of those individuals were turned away due to a lack of beds. Although Saratoga's entire homeless population in 2013 was unsheltered, the number of homeless residing within the city was a small proportion of the County's unsheltered homeless population. There are no permanent shelters located in Saratoga; however, two local churches participate in the Faith In Action Rotating Shelter Program which provides emergency shelter, food and other services. A number of regional resources are also available to homeless individuals. Saratoga is a supporting partner of the West Valley Community Services program which assists homeless individuals and families with referral and placement services. InnVision Shelter Network operates a number of transitional housing programs in Santa Clara County. The programs include job search assistance and training on the management of household finances. In the 2013 Homeless Census, 40 percent of respondents indicated that job loss was the primary factor leading to their homelessness. Programs related to job training help reintegrate individuals into the workforce and access to transitional housing provides temporary shelter during the process. The Housing Authority of Santa Clara County offers rental assistance and supportive services to homeless persons with long-term disabilities through providers in the Shelter Plus Care Program. Home First (formerly EHC Lifebuilders) connects individuals with emergency shelter, transitional housing and permanent housing opportunities, along with supportive services, throughout the Santa Clara County. Homeless individuals are referred to regional resources and organizations. A list of homeless service facilities is provided in Chapter 3 (Table 3-7). October 2014 _ The 2013 Homeless Survey revealed that one-third of the homeless population were chronically homeless. Chronic homelessness is characterized as being homeless for one or more years or experiencing 4 or more episodes of homelessness in the past 3 years. Nine percent of the homeless population were veterans, more than two-thirds of which experienced one or more conditions including Post Traumatic Stress Disorder, depression, mental illness and physical disabilities. Fourteen percent of the homeless population were families. Programs provided to homeless individuals in Saratoga and Santa Clara County should consider unique circumstances and housing needs among different homeless subgroups. f. Farm Workers Farm workers are defined as persons whose primary incomes are earned through seasonal agricultural work. According to the USDA Census of Agriculture, Santa Clara County had 4,237 farmworkers in 2012. However, Saratoga is not an agricultural community. Eighteen persons at most, less than 1 percent of Saratoga's labor force, were employed in agriculture, according to the 2007-2011 American Community Survey. It is assumed that only a small percentage of persons employed in this industry are involved in active agricultural production and harvest. Therefore, there is no apparent or recognized need for farmworker housing. g. Extremely Low-Income Households Extremely Low-Income households are defined as households earning 30 percent or less of the Median Family Income. In accordance with Chapter 891, Statutes of 2006 (AB 2634), cities must quantify the number of existing and projected Extremely Low-Income households and analyze their needs. According to the CHAS 2006-2010 dataset from HUD, 7.4 percent of total households in the city were Extremely Low-Income households. Saratoga will have 2,354 Extremely Low-Income Household in 2040 assuming a population of 32,700 by 2040 (2013 ABAG projections) and applying the same proportional distribution of income levels. The City will need to be prepared to meet the specific housing needs of Extremely Low-Income households, which may include housing with supportive services, single-room occupancy housing, shared housing, or rent subsidy vouchers. Table 2-52 shows Extremely Low-, Very Low-, and Low- Income household distributions. Table 2-52. Low Income Households Owner Renter Total Percent Percent Percent of Total of Total of Total Number HH Number HH Number HH Extremely Low Income <_30%of AMI 350 3.3% 430 4.1% 780 7.4% Very Low Income 520 5.0% 115 1.1% 635 6.1% October 2014 _ _ I S A RAT ,,�3A. HOUSING NEEDS ANALYSIS (31 to 50% AMI) Low Income 51 to 80%AMI 310 3.0% 85 0.8% 395 3.8% Total Households 8,865 84.7% 1,605 15.3% 10,470 100% Source:CHAS 2006-2010 *AMI:Area Median Income Housing problems can significantly impact Extremely Low-Income households, who may have limited means to improve their housing conditions. The CHAS 2006-2010 database identifies households at various income levels that are affected by at least one of four housing problems: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 300. Housing problems affected 285 renter and 190 owner households in the Extremely Low-Income category. Tables 2-53 and 2-54 show that housing problems affect the majority of Extremely Low-Income and Very Low Income Households, regardless of whether they own or rent. Table 2-53. Renter Housing Problems by Income Level Household Household has 1 of 4 has none of 4 Cost Income by Housing Housing Housing Burden not Problems Renters only) Problems* Problems available Total Household Income 285 105 45 430 530%AMI Household Income >30% 70 50 0 115 to 550%AMI Household Income >50% 10 80 0 85 to 580%AMI Household Income >80% 55 65 0 120 to 15100%AMI Household Income >100% 165 680 0 845 AMI Total 580 980 45 1,605 Source:CHAS 2006-2010 *The four housing problems are:incomplete kitchen facilities, incomplete plumbing facilities,more than 1 person per room,and cost burden greater than 30%. I --- October 2014 i i S A EAT A HOUSING NEEDS ANALYSIS Table 2-54. Owner Housing Problems by Income Level Household Household has 1 of 4 has none of 4 Cost Income by Housing Housing Housing Burden not Problems Owners only) Problems* Problems available Total Household Income <_30% 190 35 125 350 AMI Household Income >30% 340 185 0 520 to<_50%AMI Household Income >50% 140 170 0 310 to<_80%AMI Household Income >80% 145 230 0 375 to<_100%AMI Household Income >100% 2,525 4,780 0 7,310 AMI Total 3,345 5,395 125 8,865 Source:CHAS 2006-2010 *The four housing problems are:incomplete kitchen facilities,incomplete plumbing facilities,more than 1 person per room, and cost burden greater than 30%. October 2014 S A RAT Q�3 A t� � cr a,�✓n�� Chapter 3: Housing Constraints and Resources Constraints to housing include both governmental and environmental. Saratoga is bounded to the south and west by the Santa Cruz Mountain Range, and to the north and east by the communities of Los Gatos, Campbell, San Jose and'Cupertino. The low- lying, relatively flat portions of the city are almost exclusively built out with single-family development. Highway 85 and Highway 9 bisect the city and bring commuter traffic through to the high tech jobs in the nearby cities of Cupertino, Sunnyvale, and Mountain View. These factors, as well as the high cost of land, and limited public transportation outside of the main thoroughfares, are viewed as constraints to affordable housing by the residents of the city. A. Governmental Constraints and Resources Governmental constraints are policies, standards, requirements and actions regulated by various levels of government upon land and housing ownership and development. These regulations may include various building codes, land use controls, growth management measures, development fees, processing and permit procedures, and site improvement requirements. While state and federal agencies play a role in imposing constraints on the development and provision of housing, they are beyond the influence of local government and are, therefore, not addressed in this analysis. Governmental resources include programs that provide funds for housing-related activities, as well as, incentives provided by the local jurisdiction for the provision of housing. 1. Land Use Controls Land use controls include General Plan policies, zoning designations (and the resulting allowed uses, development standards, and permit processing requirements), and development fees. a. General Plan As required by state law, every city in California must have a General Plan, which establishes 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 of the General Plan identifies the location, distribution, and density of the land uses within the city. The Saratoga General Plan land use densities are expressed per net area, which is generally defined as the remaining portion of the gross site area after deducting portions within the right-of-way of existing or future public or private streets, easements, quarries, or areas that are classified by the City Geologist as "M" or "Ms." Residential densities are expressed in dwelling units per net acre (du/ac) and are limited by the October 2014 S A P,AT maximum intensity of building and impervious site coverage. The City of Saratoga General Plan identifies six residential land use designations and two open space designations that permit residential uses. In addition, mixed use developments that include residential uses are allowed by conditional use permit in commercial districts within the city. Table 3-1 summarizes Saratoga's residential land use designations by total acre, permitted density ranges, and maximum intensity of building and impervious surface coverage. Table 3-1. General Plan Residential Land Use Designations Table 3-1 General Plan Residential Land Use Designations Maximum Intensity of Existing Permitted Building and Impervious Designation Description Acreage Density Surface Coverage Residential Single-family dwellings, 1,926.5 0.5 du/ac 15,000 square feet or 25 Hillside horticultural and percent of the site area, Conservation agricultural use, and whichever is less accessory uses compatible with single- family dwellings. Residential Single-family dwellings, 1,920 1.09 du/ac 35 percent of the site area Very Low horticultural and Density agricultural use, and accessory uses compatible with single- family dwellings. Residential Single-family dwellings, 343 2.18 du/ac 45 percent of the site area Low Density horticultural and agricultural use, and accessory uses compatible with single- family dwellings. Medium Single-family dwellings, 2,093 Density horticultural and M-10 agricultural use, and 4.35 du/ac 60 percent M-12.5 accessory uses 3.48 du/ac 55 percent M-15 compatible with single- 2.90 du/ac 50 percent family dwellings. October 2014 S A KAT AHOUSING CONSTRAINTS AND RESOURCES Table 3-1 General Plan Residential Land Use Designations Maximum Intensity of Existing Permitted Building and Impervious Designation Description Acreage Density Surface Coverage Residential Detached and attached 83 14.5 du/ac 40 percent of the site area Multi-Family single-family dwellings, such as condominiums, duplexes, and apartments, as well as, horticultural and agricultural use, and accessory uses compatible with residential use. Planned Mix of single-family and 4 4.35- 25- 35 percent of the site Development multi-family densities and 12.45 area Residential housing types. du/ac Managed Orchard lands, water 167.3 1 du/4 acres No requirements Resource reservoirs, and lands Production under Williamson Act Contracts. Only single- family dwellings or structures directly associated with agricultural use. October 2014 - - 1 1,- u i - HOUSINGCONSTRAINTS AND RESOURCES Hillside Open Covers all areas outside 99 1 du/20 25 percent or 12,000 square Space the city limits and within acres to feet, whichever is less Saratoga's Sphere of 1 du/160 Influence (SOI) that are acres not designated as park (based on or Open Space Outdoor a slope Recreation. Agricultural density use, mineral extraction, formula parks and low intensity subject to recreational facilities, stringent land in its natural state, criteria) wildlife refuges, and very low intensity residential development and support uses of those listed above. Table 3-1 General Plan Residential Land Use Designations Maximum Intensity of Existing Permitted Building and Impervious Designation Description Acreage Density Surface Coverage Commercial Commercial 80 20 du/acre The Planning Commission is Retail uses/centers serving required to make special community and/or Note: In the findings when the residential neighborhood; not CN-RHD floor area exceeds 50 regional in orientation. zoning percent of the total floor Mixed use developments district there area of a project.Total site allowed by conditional is no coverage may also increase use permit. minimum by 10 percent for a project density containing below market- rate housing. Professional Professional offices; 34 20 du/acre The Planning Commission is and serves as a transition required to make special Administrative zone between findings when the residential Office commercial and floor area exceeds 50 residential areas. percent of the total floor Mixed use developments area of a project.Total site allowed by conditional coverage may also increase use permit. by 10 percent for a project containing below market- rate housing. Source:City of Saratoga General Plan October 2014 S A EZATP - A cx��i� As of January 2013, the State Department of Finance (DOF) reports that 11,169 dwelling units exist in Saratoga. Depending on land costs, certain densities are needed to make a housing project economically feasible for people at various income levels. According to the State of California, the densities identified below are generally sufficient to accommodate construction affordable to specific income levels. • Extremely Low-, Very Low-, and Low-Income: 20 dwelling units per acre minimum • Moderate-Income: 11-20 dwelling units per acre minimum • Above Moderate-Income: Up to 11 dwelling units per acre In addition to the generally accepted densities, California Government Code Section 65583.2 establishes "default" density standards. If a local government has adopted density standards consistent with the established population criteria, sites with those density standards are accepted as appropriate for accommodating the jurisdiction's share of regional housing need for lower-income households. Pursuant to Government Code Section 65583.2, Saratoga is considered a "suburban" jurisdiction with a "default" density of 20 dwelling units per acre. b. Zoning Code The Zoning Code is the primary tool for implementing the General Plan. Its purpose is to protect and promote public health, safety, and welfare. Additionally, it serves to promote quality design and quality of life. The City of Saratoga's residential zoning designations control both the use and development standards of each residential parcel, thereby influencing the development of housing. Table 3-2 summarizes permitted residential uses in agricultural, residential, professional and administrative office, and commercial districts. Single-family residential zoning includes eight districts: A, R-1-40,000, R-1-20,000, R-1-15,000, R-1-12,500, R-1- 10,000, HR, and R-OS. Single-family units are permitted as a matter of right in all single-family residential districts. Multi-family residential zoning consists of the R-M-5,000, R-M- 4,000, and the R-M-3,000 districts. Multi-family and single-family dwellings are permitted by right in the R-M districts. Mixed residential/commercial uses are permitted in the Professional and Administrative Office (P-A) and Commercial (C-N, C-V, CH-1, CH-2) districts subject to conformance with the mixed-use development standards specified in Article 15-58 of the zoning code and approval of a conditional use permit. Mixed residential/commercial uses are permitted by right in the Commercial C-N(RHD) district. October 2014 C11Y ui SARAT � AHOUSING AND RESOURCES Table 3-2. Residential uses- Permitted & Conditionally Permitted Table 3-2 Residential Uses-Permitted Conditionally Pemnitted Single-Family Multi-Family Second Dwelling Zone Dwelling Dwelling Units A P -- P R-1-40,000 P -- P R-1-20,000 P -- P R-1-15,000 P -- P R-1-12,500 P -- P R-1-10,000 P -- P H R P -- P R-OS P -- -- R-M-5,000 P P -- R-M-4,000 P P -- R-M-3,000 P P -- P-A C* C* -- C-N C* C* -- C-N(RHD) P* P* C-V C* C* -- CH-1 C* C* -- CH-2 C* C* -- P=Permitted by Right C=Conditional Use Permit Required*Mixed Use Development Source:City of Saratoga Zoning Regulations Chapter 15 Table 3-3 summarizes the single-family residential zoning designations and their requirements. Table 3-4 summarizes the multi-family residential designations and requirements. Table 3-5 summarizes the requirements for mixed-use development. Based on residential construction in compliance with these standards, the City has determined that minimum and maximum lot coverage, maximum building height standards and setback standards do not unreasonably impact the cost and supply of housing nor the ability of projects to achieve maximum densities. The city of Saratoga is predominantly comprised of single-family residential units; as such there are not a significant number of multi-family housing projects to provide an analysis of the impacts of these development standards on multi-family development. However, October 2014 IL-11) SARAT A HOUSING CONSTRAINTS Well AND RESOURCES to address any impacts in the future, the City will ensure that development standards in the C-N(RHD) zoning district (refer to Appendix B, Table B-5) will not be a constraint to the development of multi-family housing. „�� tK_� The City has recently approved two small mixed use developments in the historic Saratoga Village on Big Basin Way (CH ,: � . District) since the previous Housing <;_ Element update. These projects include; a two-unit townhouse project with 6,785 square feet of ground floor commercial space at a density of 5.2 dwelling units ` per acre, and a four-unit townhouse project with 1,246 square feet of ground Mixed-use development under construction in Saratoga floor commercial at a density of 6.6 Village dwelling units per acre. In addition, the City has a history of approving horizontal mixed use developments along Saratoga-Sunnyvale Road with commercial uses fronting the road and small lot single family units on the rear of the sites. For example a 12 unit mixed-use is being developed on Saratoga-Sunnyvale Road at a density of 12 dwelling units per acre, with 1,835 square feet of commercial space fronting the road and the townhouses in the back Based on the history of mixed use development in Saratoga, the City has determined that lot coverage, pedestrian open space (requirement in the CH District), private open space, height and setback standards do not unreasonably impact the cost and supply of housing nor the ability of projects to achieve maximum densities. As a new policy action for the next planning period, the City will amend the C-N(RHD) district to increase density from a minimum of 20 dwelling units per acre to a minimum of 30 units per acre and increase the maximum height limit from 30 feet to 35 feet to reduce constraints to development on these sites. October 2014 L111 UI SARATA HOUSING CONSTRAINTS AND RESOURCES Table 3-3. Summary of Residential Zoning Requirements Table 3-3 Summary of Residential Zoning Requirements Zone Minimum Lot Area Maximum Maximum Minimum Minimum Minimum Lot Building Front Yard Side Yard Rear Yard Coverage Height Setback Setback3 Setback A 10% or 5.00 25% or 26 feet 30 feet or 20 feet or 50 feet for Less Acres 15,000 sq. (two 20% of the ten single- Slope ft., stories) lot depth, percent of story 11% 5.20 whichever whichever the lot structures; Acres is less is greater width, 12% 5.40 whichever 60 feet for Acres is greater multi-story 130 5.60 structures, Acres or 250 of 140 5.80 the lot Acres depth, 15% 6.00 whichever Acres is greater 16% 6.40 Acres 17% 6.80 Acres 18% 7.20 Acres 19% 7.60 Acres 20% 8.00 Acres 21% 8.60 Acres 22% 9.20 Acres 23% 9.80 Acres 24% 10.40 Acres 25% 11.00 Acres 260 11.80 Acres 270 12.60 - _ October 2014 city 01- S A RAT fSARAT HOUSING CONSTRAINTS AND RESOURCES Table 3-3 Summary of Residential Zoning Requirements Zone Minimum lot Area Maximum Maximum Minimum Minimum Minimum Lot Building Front Yard Side Yard Rear Yard Coverage Height Setback Setback3 Setback A Acres 280 13.40 Acres 290 14.20 Acres 30% 15.00 Acres 31% 16.00 Acres 32% 17.00 Acres 33% 18.00 Acres 340 19.00 Acres 350 or 20.00 more Acres R-1- 40,000 sq. ft. interior 3502 26 feet 30 ft. Interior Interior 40,000 lot; (two lots:3 lots: 48,000 sq. ft. corner stories) lot; 20 ft. (1 st 50 ft. (1 St 40,000 sq. ft. flag lot; floor); floor); 40,000 sq. ft. hillside 25 ft. (2nd 60 ft. (2nd lot floor) floor) Corner lots: Corner lots: 20 ft. interior (1 st 20 ft. floor); 25 ft. exterior (1 st floor); 25 ft. interior (1 st floor); 30 ft. exterior (2nd floor) October 2014 � i i i CITY UI SARAT ACONSTRAINTS AND RESOURCES Table 3-3 Summary of Residential Zoning Requirements Zone Minimum Lot Area Maximum Maximum Minimum Minimum Minimum Lot Building Front Yard Side Yard Rear Yard Coverage Height Setback Setback3 Setback R-1- 20,000 sq. ft. interior 45%2 26 feet 30 ft. Interior lots: Interior 20,000 lot; 24,000 sq. ft. (two lots: corner lot; 20,000 sq. stories)1 15 ft. (1 st ft. flag lot; 40,000 sq. floor); 35 ft. (1 st ft. hillside lot 20 ft. (2nd floor); floor) 45 ft. (2nd floor Corner lots: Corner lots: 15 ft. interior (1 st 15 ft. floor); 25 ft. exterior (1 st floor); 20 ft. interior (2nd floor); 30 ft. exterior (2nd floor) R-1- 15,000 sq. ft. interior 5002 26 feet 25 ft. Interior lots: Interior 15,000 lot; 18,000 sq. ft. (two lots: corner lot; 20,000 sq. stories) 12 ft. (1 St ft. flag lot; 40,000 sq. floor); 30 ft. (1 St ft. hillside lot 17 ft. (2nd floor); floor) 40 ft. (2nd floor) Corner lots: Corner lots: 12 ft. interior (1 St 12 ft. floor); 25 ft. exterior (1 St floor); 17 ft. interior (2nd October 2014 CITY OhU S A P,AT P�3 HOUSING CONSTRAINTS AND RESOURCES Table 3-3 Summary of Residential Zoning Requirements Zone Minimum Lot Area Maximum Maximum Minimum Minimum Minimum Lot Building Front Yard Side Yard Rear Yard Coverage Height Setback Setback3 Setback floor); R-1- 30 ft. 15,000 exterior (2nd floor) R-1- 12,500 sq. ft. interior 55%2 26 ft. 25 ft. Interior lots: Interior 12,500 lot; 15,000 sq. ft. (two lots: corner lot; 20,000 sq. stories)1 10 ft. (1 St ft. flag lot; 40,000 sq. floor); 25 ft. (1 st ft. hillside lot 15 ft. (2nd floor); floor) 35 ft. (2nd floor) Corner lots: Corner lots: 10 ft. interior (1 st 10 ft. floor); 25 ft. exterior (1 st floor); 15 ft. interior (2nd floor); 30 ft. exterior (2nd floor) R-1- 10,000 sq. ft. interior 60%2 26 ft. 25 ft. Interior lots: Interior 10,000 lot; 12,000 sq. ft. (two lots: corner lot; 20,000 sq. stories)I 10 ft. (1 st ft. flag lot; 40,000 sq. floor); 25 ft. (1 st ft. hillside lot 15 ft. (2nd floor); floor) 35 ft. (2nd floor) October 2014 ___� SARAT � A CONSTRAINTS u/.'nnnar. AND RESOURCES Table 3-3 Summary of Residential Zoning Requirements Zone Minimum Lot Area Maximum Maximum Minimum Minimum Minimum Lot Building Front Yard Side Yard Rear Yard Coverage Height Setback Setback3 Setback R-1- Corner lots: Corner 10,000 lots: 10 ft. interior (1 st 10 ft. floor); 25 ft. exterior (1 St floor); 15 ft. interior (2nd floor); 30 ft. exterior (2nd floor) HR 2 acres for 0% or less 25% or 26 ft. 30 ft.5 or 20 ft. 5; 50 ft. average slope; 15,000 sq. (two 30 ft. or 20 ft. (single- 10 acres for 50% ft. , stories)? 20% of lot interior and story average slope4 whichever depth, 25 ft. structure); is less whichever exterior or 60 ft. is greaterb 10% of lot (multi-story width, structure); whichever or 250 of is greaterb lot depth, whichever is greaterb Table 3-3 Summary of Residential Zoning Requirements October 2014 S A RAT W ACnr� �J(�{c�/�>�ry�911WJvl(�> Zone Minimum Lot Area Maximum Maximum Minimum Minimum Minimum Lot Building Front Yard Side Yard Rear Yard Coverage Height Setback Setback3 Setback R-OS 20 acres for 100 or 25% or 26 ft. 50 ft. 40 ft. 100 ft. less average slope; 12,000 sq. (two single- interior (single- 180 acres 50% or ft., stories)7,9 story; (one-story); story); 120 more average whichever 70 ft. two- 50 ft. ft. (two- slope$ is less story exterior story) (one-story); 60 ft. interior (two-story); 70 ft. exterior (two-story) Notes 'Exceptions may be granted in accordance with Article 15-55 of the Zoning Code for parcels exceeding 20.000 sq.ft. 2For any non-conforming site,the requirements provided in Section 15-65.160 of the Zoning Code applies to the site. 'Setback areas for flag lots are determined according to Section 15-06.430(a) of the Zoning Code. °Minimum net site area depends on average slope, as identified in Section 15-13-060 of the Zoning Code. 5Excluding vacant lots and lots created after May 15, 1992. 6Vacant lots and lots created after May 15, 1992. 'No structure shall extend to an elevation within eight feet from the top of the nearest adjacent major ridge that does not have dense tree cover. No structure shall extend to an elevation more than 12 feet above the nearest adjacent minor ridge that does not have dense tree cover.City Code Section 15-20.100(a), (b) 8Minimum net site area depends on average slope, as identified in Section 15-20-060 of the Zoning Code. 'A structure not limited by the provisions of note 7 above,shall not exceed 22 feet;however,the Planning Commission may grant up to four feet of additional height.Source:City of Saratoga Zoning Regulations,Chapter 15,Article 15-12 October 2014 i Cl t)' ui SARAT HOUSING CONSTRAINTS AND RESOURCESTable 3-4. Summary of Multiple Family Residential Zoning Requirements Table 3-4 Summary of Multiple Family Residential Zoning Requirements Min Lot Area Min Front in Side Min (Sq. Ft.) ax LotMax Building Yard Yard Rear Zone Interior Lot Corner Lot Coverage Height Setback' Setback' Yard 10% of R-M-5,000 10,000 11,000 40 percent two stories'30 feet or 25 feet 25 feet R-M-4,000 12,000 14,000 40 percent 30 feet or 25 feet 10% of 25 feet two stories R-M-3,000 12,000 14,000 40 percent 30 feet or 25 feet 10% of 25 feet two stories N otes: 'Does not apply to a structure located within the Village which is found by the approving authority to be compatible with existing structures and the natural environment. 2For any non-conforming site,the requirements of Section 15.65.160 applies to the site. 3A side setback area of more than 25 feet shall not be required,and a side setback area of less than ten feet from the applicable side lot line shall not be permitted,subject to the following exceptions: (1) the exterior side setback area of a corner lot shall not be less than 15 feet from the exterior side lot line (2) one foot shall be added to an interior side setback area for each two feet of height or fraction thereof by which a portion of a structure within 30 of the side lot Ione for such setback area exceeds 14 feet in height provided that an interior side setback area of more than 25 feet from the interior side lot line shall not be required. Source:City of Saratoga Zoning Regulations,Chapter 15,Article 15-17 October 2014 l_117 UI SARAT , AHOUSING CONSTRAINTS AND RESOURCES n� wuh. Table 3-5. Summary of Mixed-Use Development Standards Table 3-5 Summary of Mixed-Use Location of Floor Area Max Lot Coverage Max Building Max Density Dwelling Height Dwelling units shall not comprise more than 50 Either on percent of the total floor Overall site coverage 20 the second area of all buildings on may be increased up to floor or at ten percent for projects dwelling the site. The total floor As stated for the rear ocontaining deed units per area may be increased the underlying f net with approval by the zoning district. acre* the parcel. Planning Commission with restricted below market special findings.The rate housing units. maximum overall site coverage area may be increased by ten percent for projects providing below market rate housing. Notes: *Currently within the C-N District density may be determined by the Planning Commission on a case by case basis if special findings are made.Within the C-N(RHD) District, the minimum density is 20 dwelling units per acre,projects may be approved at more than 20 du/ac with approval by the Planning Commission if special findings are made. Source:City of Saratoga Zoning Regulations, Chapter 15,Article 15- 58 October 2014 t CITY OI - % SAEZAT A HOUSING CONSTRAINTS till. AND RESOURCES c. Parking Requirements Table 3-6 summarizes the residential parking requirements in Saratoga. Parking requirements do not constrain the development of housing directly. However, parking requirements may reduce the amount of available lot areas for residential development. Table 3-6. Residential Parking Requirements Table 3-6 Residential Parking Requirements Type of Residential Development Required Parking Spaces (off street) Single Family Dwelling (excluding Two covered spaces within a garage. second dwelling units) Second Dwelling Unit One covered space with a garage, except as otherwise provided in Article 15-56 of the Zoning Code. Multi-Family Dwellings One covered space within a garage for each dwelling unit, plus one and one-half additional spaces on the site for each dwelling unit; provided, however, for dwelling units containing no more than one bedroom and for housing developments occupied exclusively by seniors and students, the required parking shall be one covered space within a garage for each dwelling unit plus one-half additional space on the site for each dwelling unit.' One bedroom dwelling units do not have to be exclusively for seniors or students to utilize the reduced parking standards Source:City of Saratoga Zoning Regulations,Chapter 15,Article 15-35 October 2014 ui ARATA E rr i aanrir. P _ d. Planned Combined District The purpose of the Planned Combined District (P-C) is to provide the City the authority to modify standards of development in an underlying zoning district so as to achieve the following objectives: (a) To provide a means of guiding development or redevelopment of properties in areas of the city that are uniquely suited for a variety of design and development patterns and standards. (b) To provide greater flexibility of land use and design for a development that provides a public benefit that would not otherwise be attainable through strict application of the zoning regulations. A public benefit could include, but is not limited to, buildings that exceed the City's green building standards, provides community facilities that are open to the public, or allows for innovative in-fill design. (c) To encourage innovative design in a development that achieves one or more specific goals and policies of the General Plan that would otherwise not be attainable through strict application of the zoning regulations. In certain instances, the objectives of the zoning ordinance may be achieved by the development of a residential community primarily for a common green development or for persons desiring smaller residences or dwelling units than economically feasible under existing zoning districts, and which combines a number of uses in order to develop a living environment in conformity with the General Plan. The P-C District may include a combination of single or multiple dwelling uses together with ancillary uses of recreational centers, social halls, restaurants, medical centers and other related facilities. The P-C district allows single-family, two-family, or three-family dwellings or a combination thereof, together with all other permitted uses in either an R-1 district or an R-M district, depending on which underlying district it is combined with (R-1 or R-M). The dwelling units shall be single-story unless otherwise approved by the Planning Commission. In addition, community centers, private recreational centers, social halls, lodges, clubs, restaurants, and medical centers to be used by the residents and their guests are allowed. Standards for site area and dimensions, site coverage, density of dwelling units, setback areas, types of structures, etc. shall in the aggregate be at least equivalent to the standards prescribed by the regulations of the district that the Planned Community District is combined with. Any P-C area shall contain a common green unless specifically waived by the Planning Commission. October 2014 SAMA 1 A Wm. a Fim 2. Density Bonus Ordinance In order to encourage the construction of affordable housing developments for Very Low- and Low- Income households, and in accordance with Chapter 4.3 Section 65915 et. seq. of the California Government Code, the City of Saratoga has adopted a Density Bonus Ordinance (Article 15-81 of the Zoning Code). Upon receipt from the applicant, the City reviews an application requesting a density bonus or incentive or concession. The Community Development Director has 90 days from receipt of the application to notify the applicant in writing regarding the status of the application. The application and all associated project approvals shall be considered by the Planning Commission which shall make a recommendation to the City Council. Prior to the issuance of a building permit for any dwelling unit in a development that a density bonus has been awarded for, the applicant shall enter into a written agreement with the City for the duration of the affordability. a. Density Bonus for Affordable Units in Mixed-Use Projects The City allows the total site coverage to be increased by 10 percent over the underlying zoning district maximum for mixed-use projects containing deed restricted below market-rate housing units. b. Reduced Parking Standards The garage requirement for a second dwelling unit may be waived if the second dwelling unit is deed restricted so that it may only be rented to below market rate (very-low, low, and moderate income) households. An on-site open parking space must be provided in lieu of a garage. 3. Institutional Facilities and Nursing Homes The City's Zoning Code defines an "Institutional facility" as a place, structure, or area operated by a public or private organization or agency, used for and providing educational, residential, or health care services to the community at large. The term includes residential developments and health care facilities operated by non-profit organizations and both public and private schools or colleges. The City's Zoning Code defines a "Nursing home" as a residential structure in which nursing, dietary, and other personal services are rendered to six or more convalescents, invalids, or elderly persons residing at the facility, and in which surgery or other medical treatment customarily given in hospitals is not performed. The City deems a convalescent home or rest home as a nursing home. Institutional facilities and nursing homes are permitted in all residential districts, except for the Residential Open Space District, as well as in the Professional and Administrative Office (P-A) district, subject to approval of a conditional use permit. Institutional facilities are also permitted in the Commercial district, subject to approval of a conditional use permit. October 2014 CI11 UI S A EAT �3 A HOUSING CONSTRAINTS AND RESOURCES 4. Emergency Shelters, Transitional and Supportive Housing, and Single-Room Occupancy Units a. Emergency Shelters and Transitional and Supportive Housing State Housing Law (Government Code Section §65583) requires that cities identify sites that are adequately zoned for emergency shelters and transitional and supportive housing. Additionally, cities must not unduly discourage or deter these uses. The City of Saratoga permits emergency shelters, transitional and supportive housing, and Single- Room Occupancy Units in the C-N(RHD) District by right. Article 15-19.035 of the City Zoning Code includes regulations and development standards regarding Single-Room Occupancy Units. This Housing Element update includes Policy Action 4-4.3 in Chapter 4 to amend the Zoning Code to permit transitional and supportive housing as a residential use in all residential zones in compliance with State Housing Law. Santa Clara County has approximately 23 emergency shelters, providing close to 800 beds year-round, with an additional 300 beds available during the winter months (November through March). There are also over 1,100 transitional housing beds throughout the County that offer a combination of stable housing and intensive, targeted support services for the mentally ill, those with chronic substance abuse, developmental disabilities, and other factors that prevent the homeless from returning to permanent housing situations. Transitional housing includes both single site and Itscatteredsite" programs. Table 3-7 provides a summary of emergency shelters and transitional housing near the City of Saratoga. October 2014 ,. lllW SARAT A • Table 3-7. Homeless Facilities near Saratoga Table 3-7 Homeless Facilities near Saratoga Facility Beds Target Population Location Emergency Shelter Asian Americans for 12 Women with children San Jose Community Involvement City Team Rescue Mission 52 Single men San Jose Hospitality House, Salvation 24 Single men San Jose Army Our House Youth Services 10 Homeless and run-away youth San Jose (HomeFirst) San Jose Family Shelter 143 Families San Jose Support Network for Battered 18 Domestic violence shelter-Women and San Jose Women children Emergency Shelter/Transitional Housing InnVision—Commercial 178 Working men, women & children, San Jose Streets Inns, Community Inns, mentally ill men &women Julian Street Inn, and Montgomery Street Inns James Boccardo Reception 370 Families and single adults San Jose Center (HomeFirst) Transitional Housing Next Door—Women with 19 Women and children—victims of San Jose Children domestic violence St. Joseph's Cathedral, 45 Worker housing—men, women and San Jose Social Ministry Office children YWCA—Villa Nueva 126 Women and children San Jose Source:Santa Clara County Consolidated Plan 2010-2015 5. Adequate Sites for Emergency Shelters/Transitional/Supportive Housing According to the 2013 Santa Clara County Homeless Survey, 35 unsheltered individuals were identified within Saratoga, representing an increase of 28 individuals from the 2011 Homeless Survey. In April 2010, the City of Saratoga amended its Zoning Code to permit emergency shelters/transitional/supportive housing in the C-N(RHD) District by right. Presently, one six acre area in the city has this designation. The area is located at Prospect Road and Lawrence Expressway. However, development standards for October 2014 _ S AKAT shelters were not defined in the City Code at that time. As permitted under the provisions of Government Code 65583, the City will establish written, objective development standards for emergency shelters such as number of beds, security, and location from other emergency shelter facilities. This will assist potential emergency shelter facility providers and the City alike when processing a proposal. The City has also adopted provisions in its Code for transitional and supportive housing within the C-N(RHD) zone district. However, further direction since that time by the State Department of Housing and Community Development (HCD) clarifies that SB 2 requires these uses be permitted in all zone districts where residential uses are permitted. To address this deficiency, the City will amend the Code to identify transitional and supportive housing as a permitted use in all residential and mixed use zones subject to the same development standards as similar housing in these zones. a. Single Room Occupancy Units Single Room Occupancy (SRO) residences are small, one-room units occupied by a single individual, and may either have a shared or private kitchen and bathroom facilities. SROs are rented on a monthly basis typically without rental deposit, and can provide an entry point into the housing market for Extremely Low-Income individuals, formerly homeless, and disabled persons. Single-room occupancy units are defined and included in the City's Municipal Code to be permitted in C-N(RHD) Districts. Development standards and regulations are included in Article 15-19.035. 6. Second Dwelling Units Second dwelling units provide additional opportunities to provide housing for people of all ages and economic levels, while preserving the integrity and character of single- family residential neighborhoods. The City of Saratoga permits second units in the A, R- 1, and HR zones, provided certain requirements are met, such as minimum net site area, minimum floor area, minimum parking requirements, number of bedrooms, and site access. F_ F ' Second Dwelling Units have been a successful means of providing affordable housing in Saratoga. The City should seek ways to reduce constraints for the development of additional - — Second Dwelling Units. As a Policy Action for the next Planning period, the City will amend the Second Dwelling Unit standards to eliminate the minimum square Historic home with second dwelling unit footage requirements and reduce the minimum lot size for Second Dwelling Units to October 2014 ? S A"R',AT 90% or more of the standard lot size for the underlying zoning district. In addition, the City shall create an informational brochure regarding Second Dwelling Units to disseminate to the public. a. Density Bonus for Second Dwelling Units A one-time 10 percent increase in site coverage and allowable floor area may be granted by the Community Development Director if a new second dwelling unit is deed restricted so that it may only be rented to below market rate (very-low, low, and moderate income) households. 7. Housing for Persons with Disabilities The U.S. Census Bureau defines persons with disabilities as those with a long-lasting physical, mental, or emotional condition. This condition can make it difficult for a person to perform activities such as walking, climbing stairs, dressing, bathing, learning, or remembering. This condition can also impede a person from being able to go outside the home alone or to be employed. As a matter of State Law (Government Code §65583), cities are required to analyze potential and actual constraints upon the development, maintenance and improvement of housing for persons with disabilities, and demonstrate local efforts to remove governmental constraints that hinder the locality from meeting the need for housing for persons with disabilities. Cities are required to include programs that remove constraints and provide reasonable accommodations for housing designed for persons with disabilities. The City of Saratoga includes reasonable accommodation procedures within the Municipal Code (Article 15-80.025) to address the requirements of State Law. a. Zoning and Other Land Use Regulations The ways in which the City of Saratoga facilitates housing for persons with disabilities through its regulatory and permitting procedures include: • The City of Saratoga allows "institutional facilities" that provide "residential health care services to the community at large" in all residential districts as well as in the Professional and Administrative Office (P-A) and Commercial (C) districts, subject to approval of a conditional use permit. • The City of Saratoga allows "nursing homes" for six or more "convalescents, invalids, or elderly persons" in all residential districts as well as in the Professional and Administrative Office (P-A) district, subject to approval of a conditional use permit. • The City defines family as "an individual or two or more persons occupying a dwelling unit and living together as a single housekeeping unit ,in which each October 20141 1 1111 111 SARATA HOUSING CONSTRAINTS //,1 M/,/I/. AND RESOURCES occupant has access to all parts of the dwelling unit. A family shall be deemed to include necessary household help. The term shall not include a group of persons occupying a hotel, motel, bed and breakfast establishment, nursing home, or institution of any kind." This . definition does not pose a constraint of the development of housing for persons with disabilities. • With the City's Reasonable Accommodations provisions, the City allows some variation from the application of its parking standards to allow the Community Development Director to determine parking requirements for housing for persons with disabilities, based upon the requirements for comparable use and upon the particular characteristics of the use. • The Planning Commission may grant a use permit as applied for or in modified form if, on the basis of the application and the evidence submitted, the Commission makes all of the following findings: o That the proposed location of the conditional use is in accord with the objectives of the Zoning Ordinance and the purposes of the district in which the site is located. o That the proposed location of the conditional use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity. 8. Building Codes and Enforcement The intent of building and safety codes is to preserve public health and safety, and ensure the construction of safe and decent housing. These codes and standards also have the potential to increase the cost of housing construction or maintenance. a. Building Codes The City of Saratoga has adopted the 2013 California Building Code, which establishes construction standards for all residential buildings. The City amends the Code as needed to further define requirements based on the unique local conditions. The Code is designed to protect the public health, safety and welfare of Saratoga's residents. Code enforcement in the city is performed proactively and on a complaint basis. b. Federal Fair Housing Act and Americans with Disabilities Act The federal Fair Housing Act of 1998 (FHA) and the Americans with Disabilities Act (ADA) are federal laws intended to assist in providing safe and accessible housing. ADA provisions include requirements for a minimum percentage of units in new developments to be fully accessible for persons with physical disabilities. Compliance with these regulations may increase the cost of housing construction as well as the cost of rehabilitating older units, which may be required to comply with current codes. October 2014 j SA RAT AHOUSING CONSTRAINTS AND RESOURCES However, the enforcement of ADA requirements is not at the discretion of the City, but is - mandated under federal law. 9. On and Off-Site Improvements On and off-site improvements may be required in conjunction with development based on the location of the project and existing infrastructure. Dedication and construction of streets, alleys and other public easements and improvements may be required to maintain public safety and convenience. The City's standards and requirements for streets, sidewalks, and other site improvements are found in the Municipal Code. Table 3-8 summarizes the City's standards for roadway and right-of-way widths. Table 3-8. Street Widths Table 3-8 Street Widths Right-of-Way Width (in feet) Type of Street Pavement 6-Lane Through-fare 120 104 (including 16- foot median strip) 4-Lane Divided Thorough-fare 100 80 (including 16- foot median strip) 4-Lane Undivided Thorough-fare 90 64 2-Lane Thorough-fare 60; 842 40; 64 Frontage Road 30 (including 5-foot separator between 24 main line right-of-way and nearest frontage road curb face) Collector 60 40 Hillside 50 (plus slope easements where 26 necessary) Local Street (RM-3,000; RM-4,000; 56 36 RM-5,000) Local Street (R-1-10,000; R- 50 36 1- 12,500) Local Street (R-1-15,000) 50 33 Local Street (R-1-40,000) 50 26 Hillside Local Street 40 (plus slope easements where 26 necessary) j October 2014 CITY UI S A RATA HOUSING CONSTRAINTS ../r nr,rir. AND RESOURCES Table 3-8 Street Widths Right-of-Way Width Type of Street (in feet) Pavement Width (in feet)' Cul-de-Sac 50 33 Cul-de-Sac serving 12 lots or less 40 30 Cul-de-Sac, turnaround 42 (radius) 32 (radius) Minimum Access Street 20 18 Notes: 'Total width between exterior curb faces or shoulder edges 2Required on 2-lane thoroughfares in or adjacent to commercial or PA zoning districts to provide channelization for turning movements Source:City of Saratoga Municipal Code Article 14-10.320 Table 1,definition for"Subdivision" The on- and off-site improvements required by the City are necessary to adequately provide the infrastructure and public facilities that support housing development. These requirements ensure public safety and health, are not jeopardized by increased development and do not unduly hinder housing development. 10. Development Fees The Community Development Department of the City of Saratoga is self-funded. Various development and permit fees are charged by the City and other agencies to cover administrative processing costs associated with development. These fees ensure quality development and the provision of adequate services. Often times, development fees are passed through to renters and homeowners in the price/rent of housing, thus affecting the affordability of housing. Table 3-9 compares the development fees in Saratoga with development fees of neighboring cities. Table 3-10 summarizes the typical development fees for single-family and multi-family developments. Based on the residential projects constructed in Saratoga, the City has not found the development and permit fees to hinder the supply of housing. October 2014 r Liiti uU SARAT A HOUSING CONSTRAINTS -1 i AND RESOURCES Table 3-9. Comparative Development Fee Summary 2013-2014 Table 3-9 Comparative Development Fee Summary 2013-2014 Description Saratoga Cupertino Los Gatos Planning Negative Cost of consultant plus 35%. Major'- $4,174 Minor2- $2,175 ($5,000 Declaration $2,086 deposit for Initial Study) EIR Processing Cost of consultant plus 35%. $27,134 Consultant's fee, plus review fee - $10,942 and 10% EIR Cost Categorical -- $243 No fee Exemption General Plan $3,500 initial deposit $139/hour Actual Amendment cost/$5,000 deposit Zone Change $3,500 initial deposit $139/hour Actual cost/$5,000 deposit Tentative Map Less Than 10 Lots - $15,509 Four lots or less- $5,000 initial deposit; $6,944; Five lots or 10 or More Lots- more- $11,010 $5,000 initial deposit plus $150 for each lot over 10; Subdivision Final Map- $2,500 for 1 It lot plus $500 each additional lot. Site Plan Review Administrative Design Review Design Review Development -$3,400; Committee - $3,504 Review Planning Commission Design Committee Review- $5,200 Planning Commission - Approval- Varies $7,244 from $7.011 to$1,751; Planning Commission Approval - Varies from$8,458 to $1,751 Conditional Use Use Permit-Application Major Use Permit - Varies: $824 to Permits and Review: (Admin Review) $15,509; $5,862; Variance Variances $3,400; (Planning Commission Minor Use Permit - -$3,648. Review) $4,400; $7,244; Variance- Variance-Application $2,731 Review- $2,700 October 2014 CITY OI �:% SARAT j,,.,,A i HOUSING CONSTRAINTS AND RESOURCES „� . Table 3-9 Comparative Development Fee Summary 2013-2014 Description Saratoga Cupertino Los Gatos Building Building Permit $78 minimum up to $7,010 for Varies from $2,693 Varies from the first $1,000,000 plus (2,500 sq. ft. tract $23.50 for up to $4.56 each additional home) + $46.24 for $500 to $1,000 or fraction thereof each 100 sq. ft. to $5,608.75 for the $2,919 (2,500 sq. ft. first $1,000,000 custom home in plus hillside) + $46.24 for $3.15 for each each 100 sq. ft. additional $1,000 or fraction thereof Plan Check 65%of the building permit fee Varies from $1,354 65%of building (2,500 sq. ft. tract permit fee home) + $1 for each 100 sq. ft. to$4,954 (2,500 sq. ft. custom home in hillside) + $40 for each 100 sq. ft. Electrical $.10/sq. ft. (minimum $78) $47 - permit $69 - permit; plan review fee 25% of electrical permit fee; $.11/sq. ft. new construction only Mechanical $.10/sq. ft. (minimum $78) $47- permit $69 - permit; plan review fee -25%of Mechanical Permit fee; $.1 ]/sq. ft, new construction only Plumbing $.10/sq. ft. (minimum $78) $47- permit p $69 - permit; plan review fee - 25%of Plumbing Permit fee; $.11/sq. ft. new construction only SMIP (Strong Building valuation x 0.0010 -- For residential Motion (minimum 50 cents) construction of Instrumentation three stories and Program) less, the ermit October 2014 i ciir ur % SARA [ ' AHOUSING CONSTRAINTS AND RESOURCES Table 3-9 Comparative Development Fee Summary 2013-2014 Description Saratoga Cupertino Los Gatos fee is $4.00 per $100,000. Energy3 Addition to Residential Building -- 15%of Building -$200 Permit New Residential Structure- $300/unit Permit Issuance See "Building Permit" fee See "Building Permit" $69 fee Engineering and Subdivision Final Map Tentative Subdivision Map - One to four lots- Map check Actual cost charge plus 25% $4,130; Greater than done by Town's surcharge for City's indirect four lots-$8,574 consultant cost plus $2,500 for the first lot - Consultant Cost and $500 for each additional plus 25% lot surcharge for reports, reviews, and processes. Lot Line $1,500 $2,801 $1.700 Ad'ustment4 Storm -- Single Family: $3,152/DU Varies - Single Drain/Water to $4,280/acre; Multi- Family: $3,797/ac Quality family: $3,072/acre plus to: Multi-family $232/DU (20DU max per $3,797/ac and acre. $143 for each additional unit (not to exceed $4,622/ac Street First $50,000 Estimated -- Sidewalks- $16 Improvement Construction Cost - $5,000 per linear foot; minimum charge Curb and Gutter Over$50,000 Estimated - Construction Cost - $5,000 plus $61 per linear 5%of Estimated Construction foot Cost over $50,0005 Sewer First $50,000 Estimated -- -- Improvement Construction Cost-$5,000 minimum charge Over$50,000 Estimated Construction Cost - $5,000 plus 5%of Estimated Construction -� Cost over $50,000 October 2014 CITY ul ' S A RAT ACONSTRAINTS ..i nrvn:r. AND RESOURCES Table 3-9 Comparative Development Fee Summary 2013-2014 Description Saratoga Cupertino Los Gatos Grading Less than 100 Cubic Yards- Greater of$2542 $289; first $500; Over 100 Cubic Yards minimum or 6% of cost $50,000 of value $500 for the first 100 cubic of improvement 10%of estimated yards cost of plus $125 for each additional improvements 100 cubic yards or fraction next $50,000 of thereof; value -8%of Plan Check Fee $530 estimated cost of improvements. Capital Facilities and Connections Water $500 $6,894 for single family -- and townhouses; $2,280 for multi-family Sewer $500 $77.50 $34 In-Lieu Park $20,700 Varies: $8,100/DU multi- Based on $0.04 Facilities Fee family to$15,750/DU for each square Single family foot of building addition or alteration, which increases floor area of an existing building. Table 3-9 Comparative Development Fee Summary 2013-2014 Description Saratoga Cupertino Los Gatos October 2014 S A RAT A ' AND RESOURCES Table 3-9 Comparative Development Fee Summary 2013-2014 Description Saratoga Cupertino Los Gatos Sewer $500 $77.50 $34 In-lieu Housing -- Projects one to six units: -- As an option Mitigation $2.93/sq. ft. of floor for project with area. 5-10 DU, In-lieu fees can be paid into the Town's Affordable Housing Fund and are calculated as 6 percent of building permit valuation as determined by the BuildingOfficial. Notes: 'Eight or more residential units. 2 Less than eight residential units. 3 Energy fee is waived for all deed restricted units that meet CAL Green requirements 41-ot Line application fees are waived for projects with a minimum of 20%affordable housing units 'The Estimated Construction Cost shall be determined by the Public Works Director and shall be exclusive of the cost to construct public utility facilities where another public utility agency is collecting similar fees for such facilities. —Not listed in Fee Schedule Sources:City of Saratoga User Fee Schedule Fiscal Year 2013/2014; City of Cupertino Summary of User Fees, Resolution 13-030, Fees effective July 1,2013;Town of Los Gatos Comprehensive Fee Schedule FY 2013/2014. 2010-2015 Consolidated Plan,City of Cupertino October 2014 C I I) i.r I SARAT AHOUSING CONSTRAINTS AND RESOURCES Table 3-10. Typical Development Fees Comparison Single-Family and Multiple-Family Table 3-10 Typical Development Fees Comparison Single-Family and Multi- Family Development Fee New Single-Family' New Multi-Family' Design Review $5,200 $5,200 Engineering Review $1,000 $1,000 Geotechnical Review (for $3,500 N/A Basement Arborist Review $2,500 $3,500 Environmental Review N/A $60,000 (estimate) Impact Fee Water and Sewer Connection $1,000 $5,000 Park In-Lieu $20,700 $103,5003 Total $33,900 $178,200 ($33,640 per unit) Notes: 'One single-family unit 2Based on an apartment development with 5units 3 The City may waive Park I-Lieu fees for new deed restricted housing units affordable to low and very low income households,and may accept private on-site open space in place of the park In-Lieu fee. Source:City of Saratoga 11. Local Processing and Permit Procedures Delays in development and building permit processing can be associated with considerable holding costs that may affect the price of housing. Table 3-11 summarizes the approximate processing time for development applications. Because the City processes permits concurrently, projects that require a conditional use permit can be approved in approximately the same timeframe as projects that do not require discretionary approvals. The Planning Commission may grant a conditional use permit as applied for or in modified form if, on the basis of the application and the evidence submitted, the Commission makes all of the following findings: • That the proposed location of the conditional use is in accord with the objectives of the Zoning Ordinance and the purposes of the district in which the site is located; • That the proposed location of the conditional use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity; and October 2014 1.1 11 111 �% S A RATA HOUSING CONSTRAINTS AND RESOURCES • That the proposed conditional use will comply with each of the applicable provisions of Chapter 15 of the Municipal Code. • That the proposed conditional use will not adversely affect existing or anticipated uses in the immediate neighborhood, and will not adversely affect surrounding properties or the occupants thereof. Table 3-11. Local Development Processing Time Table 3-11 Local Development Processing Time Item Standard Projects Zoning Entitlements including Conditional Use Permit or Variance 2-3 months Reclassification (rezoning) 3-4 months Plan Check 3-4 weeks General Plan Amendment 3-4 months Environmental Documentation 3-4 months Source:City of Saratoga,Community Development Department Table 3-11 summarizes the estimated processing timelines for planning application by development type. Processing timelines often occur concurrently. Based on recent residential projects constructed in Saratoga, the City has not found the local development processing timeline to hinder the development of housing. The following describes each process and corresponding decision-making body: Design Review • The Community Development Director grants design review approval when an application is found in compliance with the City's Municipal Code. • If the Community Development Director intends to approve the application, a "Notice of Intent to Approve" will be mailed to all property owners within two hundred fifty feet of the subject property and to others as deemed appropriate. All interested parties will have fifteen calendar days from the date of the "Notice of Intent to Approve" in which to review the application and provide written comments to the Community Development Director. The Community Development Director approves or denies the application within fifteen days of the close of the review period and mails notices of the decision to the applicant and to any party that has requested a copy. The Community Development Director's decision can be appealed to the Planning Commission within fifteen calendar days of the Director's decision to approve the application. The Planning Commission at a public hearing will review any appeal. October 2014 L 15 ui AW SARAT P�-jA • In reviewing applications for design review approval under, the Planning Commission is guided by the following criteria: 1 . Site development follows the natural contours of the site, minimizes grading, and is appropriate given the property's natural constraints. 2. All protected trees shall be preserved, as provided in Article 15-50 (Tree Regulations). If constraints exist on the property, the number of protected trees, heritage trees, and native trees approved for removal shall be reduced to an absolute minimum. Removal of any smaller oak trees deemed to be in good health by the City Arborist shall be minimized using the criteria set forth in Section 15-50.080. 3. The height of the structure, its location on the site, and its architectural elements are designed to avoid unreasonable impacts to the privacy of adjoining properties and to community viewsheds. 4. The overall mass and the height of the structure, and its architectural elements are in scale with the structure itself and with the neighborhood. 5. The landscape design minimizes hardscape in the front setback area and contains elements that are complementary to the neighborhood streetscape. 6. Development of the site does not unreasonably impair the ability of adjoining properties to utilize solar energy. 7. The design of the structure and the site development plan is consistent with the Residential Design Handbook, pursuant to Section 15-45.055. 8. On hillside lots, the location and the design of the structure avoid unreasonable impacts to ridgelines, significant hillside features, community viewsheds, and are in compliance with Section 15-13.100. General Plan Amendment • The Community Development Department reviews the application and prepares a report, which shall be submitted to the Planning Commission. • The Planning Commission holds at least one public hearing on the proposed amendment. • Following the conclusion of the public hearing, the Planning Commission determines whether the proposed amendment should be adopted. The Commission transmits its recommendation to the City Council in writing, together with a copy of the application, if any, and the documents submitted, the report to the Commission from the Community Development October 2014 Pte) �iir ur SAKATA ../f/fIIIIIIIII AND RESOURCES Director, the minutes of proceedings conducted by the Commission and the resolution and findings, if any, adopted by the Commission with respect to the proposed amendment. • Upon receipt of the recommendation of the Planning Commission, the City Council conducts a public hearing on the proposed amendment. • The City Council may approve, modify or reject the recommendation of the Planning Commission. Tentative Subdivision Map • Applications for tentative subdivision map approval are filed with the Community Development Director who examines the application and the documents submitted. The time of filing the application is the date on which the application is accepted by the Community Development Director as being complete. Variance • The Planning Commission is designated as the approving authority to grant variances from the regulations prescribed in the Municipal Code. • The Community Development Department reviews the application and prepares a report, which shall be considered in determining whether to approve or deny the variance. • The Planning Commission conducts a public hearing on the application for a variance. • Any determination or decision by the Planning Commission can be appealed to the City Council. Conditional Use Permit • The Community Development Department reviews the application and prepares a report, which shall be considered in determining whether to approve or deny the conditional use permit. • Except for those uses identified in Section 15-55.065 of the Municipal Code, the Planning Commission considers all applications for conditional use permits and conducts a public hearing. • Any determination or decision by the Planning Commission may be appealed to the City Council. Final Map • Prior to the expiration of a tentative map approval or extension, the owner has the property accurately surveyed and a final map prepared substantially in accordance with the tentative map as approved. The October 2014 / SARAT AAND RESOURCES - _ HOUSING CONSTRAINTS applicant files three copies of the final map, with any and all alterations and changes required, with the City Engineer for approval. • Once the final map is filed with City Clerk, at the next available regular meeting, the map shall be either approved or disapproved by the City Council. • The applicant, or any interested person, may appeal to the City Council any determination or decision by filing with the City Clerk a notice of appeal that clearly identifies the determination or decision from which the appeal is taken and states the grounds for the appeal. Arborist Review • The City arborist conducts a field survey of the property and notes tree locations, assigns tree numbers, draws outlines of tree canopies and locations for tree protective fencing, and proposes alternate locations for trenching, lighting, or irrigation lines, and any other pertinent information deemed necessary. Table 3-12. Typical Development Processing Timelines by Development Type Table 3-12 Typical Development Processing Timelines by Development Type Process Single-Family Multi-Family Design Review (Administrative) 1-2 months 1-2 months Design Review (Planning Commission) 2-3 months 2-3 months Environmental Assessment 2-3 months 2-3 months General Plan Amendment 4-6 months 4-6 months Tentative Subdivision Map 2-3 months 2-3 months Variance 2-3 months 2-3 months Conditional Use Permit 2-3 months 2-3 months Annexation 6-9 months 6-9 months Final Map 3 months 3 months Source:City of Saratoga,Community Development Department 12. Measure G The voters of Saratoga approved Measure G in March 1996, which reaffirmed and readopted until December 31, 2025, the provisions of the Land Use Element of the City's 1983 General Plan with amendments through August 7, 1995. Certain amendments to October 2014 viii ui SARAT HOUSING CONSTRAINTS • RESOURCES the Land Use Element, including changing certain designations on the General Plan Land Use map, may only be made by a vote of the people. The initiative does not affect the City's existing regulations that authorize the creation of second dwelling units, nor does it interfere with the City's obligation under State law to revise the Housing Element. 13. Environmental and Infrastructure Constraints a. Environmental Constraints Environmental hazards affecting housing units include geologic and seismic conditions, flooding, fire hazards, toxic and hazardous wastes, and noise. The following a � = hazards may impact future development of residential units in the city. Most identified sites in Appendix B: Land Resources, do not contain environmental constraints to the development of housing. Where environmental constraints exist, the City of ,r. Residential development in the Saratoga foothills Saratoga has identified measures for mitigation. i. Seismic Hazards The topography of Saratoga generally consists of the low-lying, relatively flat valley floor and the northwestern foothills. Outside the city limits, but within the City's Sphere of Influence, are the Castle Rock portions of the Santa Cruz Mountains. These mountains are very rugged, comprised of steep canyons and sharp rounded ridge tops. The dominant geologic feature within Saratoga's Sphere of Influence is the San Andreas Fault zone, which bisects the mountainous portion of the terrain. The fault zone determines the geology and topography of the area by separating two different rock assemblages and their associated erosion characteristics. A complex system of fault traces and fractured rock compose the fault zone. The location of the San Andreas Fault, along the ridge of the Santa Cruz Mountains, subjects the hillside region of the city to potentially severe lateral displacement and ground shaking should an earthquake occur. However, a major portion of the city is underlain by the relatively flat valley floor that is considered a geologic stability zone. There are two "potentially active" faults within the city limits. The Berrocal Fault belongs to the Sargent Fault zone, a complex system of interconnecting faults extending northwest between San Andreas and the Calaveras Faults. The fault trace crosses Congress Springs Road and continues into the southeastern portion of the Sphere of October 2014 v �iir of S A RAT Influence. The Shannon Fault, part of the Monte Vista fault system, closely parallels the Highway 85 corridor from Regnart Creek in Cupertino to the north, crosses Saratoga Avenue, and continues to Almaden Expressway in the southeast portion of San Jose. Although there is a remote chance that ground rupture could occur on either one of these fault traces, it is more likely to occur on the San Andreas Fault. However, little rural residential development has occurred within the San Andreas fault zone in Saratoga's Sphere of Influence, so the present risk of structural damage due to fault rupture is minimal. The San Andreas Fault zone is the only area within the city and its Sphere of Influence that the State has designated as a Special Studies Zone. Special Studies Zones are areas along faults considered to be active or potentially active as established by the California Division of Mines and Geology in compliance with the Alquist Priolo Geologic Hazard Zones Act. When development for human occupancy is proposed within these zones, special studies relating to seismic hazards are required and must be submitted to the City or County Geologist for review. As required by the State of California, the Saratoga General Plan contains policies regarding land instability and seismic hazards within the Safety Element (updated in 2013). In addition, the General Plan identifies the general location of the areas of potential seismic hazards, as well as potentially active faults, 100-year flood areas, and hazardous fire areas in the Safety Element. The goal of the geologic and seismic policies is to protect residents from injuries and minimize property damage resulting from land stability, geologic and seismic hazards. To that end, the General Plan identifies specific policies that prohibit development without site-specific geotechnical investigations; prohibit development of structures for human habitation in areas proven to be unsafe (to the maximum extent permitted by law); and, enforce strict earthquake construction and soil engineering standards in order to select the most stable building sites, and to compensate for soil instabilities through the use of approved engineering and construction techniques. In addition, zoning regulations for residential development in hillside areas identify specific mandatory development criteria including the preparation of a site development plan and geologic and soils report; specific procedures for grading and siting structures; and, additional studies (soil and foundation engineering investigation, slope stability studies, investigations addressing seismic hazards of nearby fault traces) as necessary. ii. Landslides The hillside region of the city contains some rock formations conducive to landslides. These areas primarily lie west of Saratoga-Sunnyvale Road, pass through a portion of the Northwestern Hillsides Residential District, and continue past Big Basin Way. The zone is also present within the Sphere of Influence, along the city's northwestern boundary and across Bohlman Road. Landslides and unstable slopes may occur in this area, and can create hazards within the city limits as the slide debris and rock move down the incline toward the city's valley floor. October 2014 HOUSING CONSTRAINTS SAKAT A AND RESOURCES Landslides and slope instability are the major non-seismic geologic hazards in Saratoga. Although most of the hillside areas experience these hazards to some degree, the most severe risks are found in the vicinity of the Congress Springs area and the upper Calabazas Creek watershed. As noted above, the General Plan includes specific policies to protect residents from injuries and minimize property damage resulting from land stability, geologic and seismic hazards. Moreover, the Zoning Ordinance includes specific regulations for residential development in the hillsides designed to protect human life and property. iii. Soil Creep and Expansive Soils Soil creep and expansive soils are most prevalent in the western hillside regions of the city. Soil creep is the slow, down slope movement of near surface materials. The rate of soil creep is a function of slope angle and soil thickness and texture. It can be regarded as a continuous process, and may cause retaining walls, foundations, and paved roads to fail over a period of time. Expansive soils contain high proportions of clay and alternatively absorb and release large amounts of water during wet and dry cycles. Structures built on expansive soils can experience rising foundations during the wet season, resulting in cracked foundations, distorted frameworks, and warped windows and doors. To address adverse effects associated with soil creep and expansive soils, the City requires geotechnical investigations and soil reports in areas where soil creep and expansive soils exist. The presence of soil creep should not have a prohibitive effect on land use, but should alert the City to require appropriate geotechnical investigations to evaluate conditions and to impose engineering solutions to mitigate problems. iv. Flooding Three major drainage basins lie within the city, the San Tomas Aquino, Saratoga, and Calabaza Creeks. Several tributaries of the San Tomas and Calabaza Creeks are located within the city, as well. These include Wildcat, Vasona, and Sobey Creeks, (tributaries of San Tomas Creek), and Prospect and Rodeo Creeks, (tributaries of Calabaza Creek). Areas adjacent to the San Tomas Aquino, Saratoga, and Calabaza Creeks are located within the 100-year floodplain. In addition, the Wildcat and Vasona Creeks are also subject to the 100-year flood hazard. Saratoga participates in the National Flood Insurance Program (NFIP). The City adopts and enforces certain floodplain management ordinances and, in return, residents can purchase Federally-backed flood insurance. In addition, the City has an extensive review procedure in conjunction with the Santa Clara Valley Water District, which addresses flooding potential and the impact on development. v. Toxic and Hazardous Wastes Existing regulations in Saratoga severely limit uses involving hazardous materials. Thus, no October 2014 `�� ' S A RAT AOFF V.. major chemical handlers are located within the city. The storage, use, and disposal of hazardous materials is limited to gas stations. The hazardous materials generated typically consist of anti-freeze, brake fluid, motor oil, and gasoline. Saratoga has a Hazardous Materials Storage Ordinance (Chapter 8 of the Municipal Code) to protect "health, life, resources, property through prevention and control of unauthorized discharges of hazardous materials." The ordinance includes regulations governing administration and enforcement of the code, which is performed by the County; the list of specific materials covered; containment standards; and, preparation of hazardous materials management plans. vi. Fire Hazards The Saratoga Fire Protection District and the Central Fire District of Santa Clara County serve the city of Saratoga. All area fire departments cooperate in mutual aid agreements, which loosen the strict adherence to district boundaries when adjacent communities are in need. The City's Subdivision Ordinance (Chapter 14 of the Municipal Code) requires a peakload water supply of 1,000 gallons of water per minute for two hours for all housing developments. However, areas with higher site elevations decrease the 35-pound minimum pressure needed to provide 1,000 gallons per minute, which has caused a severe problem with providing adequate fire protection in the Northwestern Hillsides Residential District, where several of the homes currently do not meet the City requirement. Hazardous fire areas within the city are located within the Northwestern Hillsides area and extend to the Lower Hillsides in the southwestern portion of the city. Special building regulations exist for the hazardous fire areas, including the requirement for fire retardant roofs and the installation of an electronic fire detection system (Early Warning Fire Alarm System). The Early Warning Fire Alarm System, which is required in all new homes or existing homes expanded by more that 50 percent, consists of heat and smoke detectors which when activated, will transmit a signal directly to a receiver panel in the Saratoga Fire District Station. The fire district will then receive the earliest possible warning of fires, decreasing response time to remote areas and thus reducing the possibility of death, injury, and property damage. The City also requires anti-fire buffer areas and sufficient clearance around each house in the Northwestern Hillsides area. The minimum setbacks in this area are 30 feet in the front yard, 20 feet in the side yards, and a minimum of 50 feet in the rear. Finally, the City has a Weed Abatement Ordinance that requires property owners to remove weeds and other combustible materials that become a fire menace. vii. Noise October 2014s j LI I7 U1 l : J kq Is nF x a Traffic is the primary source of noise in Saratoga. In addition, commercial activities, recreation complexes, and other sites of outdoor public assembly such as churches and school sites, have been identified as periodic sources of noise complaints. The City's Planning Department currently considers noise in the project review process and works with the applicant to use site planning and other design strategies to reduce noise impacts. b. Infrastructure Constraints The following presents the analysis of existing and future water and sewer capacity in Saratoga. The City has found that based on population projections and housing growth needs, there is adequate water and sewer capacity. i. Water The city of Saratoga receives its water supply from the San Jose Water Company. San Jose Water Company obtains water from three major sources: groundwater, imported surface water, and local mountain surface water. Groundwater is pumped from over 100 wells that draw water from the Santa Clara Groundwater Basin. Groundwater accounts for approximately 40 percent of supply. Imported surface water is provided by Santa Clara Valley Water District (SCVWD), the wholesale supplier. Surface water imported from the Sacramento-San Joaquin Delta and purchased from the Santa Clara Valley Water district accounts for approximately 50 percent of supply. A majority of this water originates as Sierra snowmelt, and travels through the State and Federal water projects before treatment at SCVWD's three water treatment plants. A smaller portion is impounded in local reservoirs in Santa Clara County. Local mountain surface water is collected in the Santa Cruz Mountains, and treated at San Jose Water Company's two water treatment plants. Local surface water accounts for approximately 10 percent of supply. These sources are often blended together in the distribution system. Consequently, different sources are dispersed to Saratoga from day to day as customer usage changes. Saratoga will continue to meet its future demands with imported water, groundwater, and local mountain surface water supplies. Portions of the higher elevations of the Santa Cruz Mountains within the City's Sphere of Influence provide water runoff into local streams and recharge wells that provide a portion of the City's water supply. These areas should be protected from significant urbanization in order to maximize continued production of the local water supply. ii. Sewer The city of Saratoga is served by two sanitation districts: the Cupertino Sanitary District and the West Valley Sanitation District. The Cupertino Sanitary District covers an area of approximately 15 square miles, serving a population of over 50,000 people. The District owns and manages over 1 million feet of sewer mains, 500,000 feet of sewer laterals, and 15 pump stations. The October 2014 ��4 S A R A T A � N� 37 ;y ,1 jI] District has been maintained with a proactive capital improvement program aimed at extending the reliability and life of the system beyond 100 years. Currently, the District discharges 4.6 million gallons per day, and has rights to discharge over 8.6 million gallons per day. The District anticipates being able to accommodate expected growth within areas served. The West Valley Sanitation District covers over 30 square miles, serving a population of over 120,000 people. The District facilities include over 400 miles of sewer mains and over 250 miles of sewer laterals. The District has a fixed capacity allocation of 13.05 million gallons per day. Based on population growth projections for 2030, the District would not exceed the current fixed capacity allocation. B. Non-Governmental Constraints 1. Vacant and Underutilized Land A thorough analysis of vacant and underutilized land within the city of Saratoga is provided in Appendix B. 2. Land Prices Land cost increases have a significant influence on the cost of housing and the availability of affordable housing. A number of factors determine land prices, the most important of which are land availability and permitted development density. As land becomes less available, the price of land increases. Based on review of a few multi- family property sales in Saratoga over the past several years, land costs average $100 per square foot. 3. Construction Costs Construction costs are primarily determined by the cost of materials and labor. They are also influenced by market demands and market-based changes in the cost of materials. Construction costs depend on the type of unit being built and the quality of the product being produced. Table 3-13 summarizes the estimated construction costs based on type of development in Saratoga. Table 3-13. Construction Cost Estimates Table 3-13 Construction Cost Estimates Development Type Cost per Square Foot Single-Family Residential $250 Town homes/Condom iniums $250 Multi-family-garden style apartments $250 Notes: October 201447, S1.115 UA / A EAT �A CONSTRAINTS AND RESOURCES Based on the prevailing market conditions.Units assume garden-style apartments with on-site parking. 2Based on average square foot reported by Reall'acts. 3Assumes$150 per square foot construction costs and$100 per square foot multi-family land costs. 4. Mortgage and Rehabilitation Financing The availability of financing in a community depends on a number of factors, including the type of lending institutions active in the community, lending practices, rates and fees charged, laws and regulations governing financial institutions, and equal access to those institutions. Through analysis of Home Mortgage Disclosure Act (NMDA) data on the disposition of residential loan applications, an assessment can be made of the availability of residential financing within a community. Table 3-14 summarizes HMDA data for both Saratoga and Santa Clara County as a whole, providing information on the approval status of all home purchase and home improvement loan applications during 2012. Of the 521 applications for home purchase loans in Saratoga, 79 percent were approved, 12 percent denied, and nine percent (9%) withdrawn or incomplete. In comparison to the County-wide average, mortgage loan approval rates were fairly comparable in Saratoga (79%) and overall Santa Clara County (78%). In contrast, approval rates for home improvement loans were higher in Saratoga than Santa Clara County as a whole, at 75 percent compared to 70 percent County-wide. Review of loan denial rates by census tract does not identify any areas in Saratoga where loan denials differed markedly from the citywide average. Table 3-14. Home Purchase and Improvement Loans - 2012 Table 3-14 Home Purchase and improvement Loans-2012 Loans Loans Approved % Loans Denied Withdrawn/ # Loan Incomplete Loan Type Applications Santa Santa Santa in Saratoga Saratoga Clara Saratoga Clara Saratoga Clara County Count Count Home 521 79% 78% 12% 12% 9% 10% Purchase Home 92 75% 70% 14% 20% 11% 10% Improvement Source:Home Mortgage Disclosure Act (HMDA) data,2012 Figure 3-1 shows the average interest rates in 2013. Interest rates are determined by national policies and economic conditions and there is little that a local government can do to affect these rates. However, in order to extend home buying opportunities to lower-income households, jurisdictions can offer home buying assistance programs such as interest rate write-downs and consider government insured loan programs that may - be available to reduce mortgage down payment requirements. October 2014 4 , , SA Y0[ AT HOUSING CONSTRAINTS 1 RESOURCES l� i October 2014 I City of SARAT A HOUSING CONSTRAINTSAND RESOURCES _JN Figure 3- 1. Mortgage Rates -2013 5.00 4.50 4.00 3.50 3.00 _ 2.50 --- --��i�."� 2.00 150 1.00 0.50 0.00 -•q-••1 YRARM -e--15 YR FRM - �-30 YR FRM Source: Freddie Mac Primary Mortgage Market Survey As a result of the recent recession, there have been changes in the qualifications and lending standards for home loans. Nationally, because there was a large increase in the number of delinquencies and foreclosures in the residential market, lenders have more stringent qualifications for home loans; and lower-income households may find it more difficult to qualify. C. Resources The ability of the City to achieve its housing goals and objectives will, to a large extent, depend on the availability of financial resources for implementation. Two primary sources of funds- Community Development Block Grants (CDBG) and Community Service Grants - are currently used to support housing activities in Saratoga. Each of these is described in the following section. 1. Community Development Block Grant Program Community Development Block Grant (CDBG) Program funds are the largest sources of Federal funding for housing and housing related activities in Saratoga. While Saratoga does not have a large enough population to be a CDBG Entitlement City (minimum population of 50,000), the City has joined with other smaller cities and Santa Clara County to form an Urban County under the CDBG Program. The participating cities jointly develop funding priorities and assist the County Board of Supervisors in determining CDBG funding allocation across the Urban County. Table 3-15 lists the Urban County CDBG funded activities approved for the 2015 fiscal year. October 2014 =� j RATP A y r Table 3-15. Santa Clara County CDBG and HOME Funded Programs Table 3-1 Santa Clara Coun CDBG and HOME Funded Proms Applicant Project Funding 1 Mid-Peninsula Housing The Farm Source 2 Rebuildin To ether Silicon Valley Home Repair& Modifications HOME 3 Catholic CharitiesCDBG Lon Term Care Ombudsman DBG C 4 Catholic Charities EI Toro Youth Center 5 Community Service Agency of Los Senior Case Management CDBG Altos, Los Altos Hills & Mt. View CDBG 6 Communit Solutions La Isla Pacifica Domestic Violence Shelter CDBG 7 Community Technology Alliance Tools for Ending Chronic Homelessness in Santa Clara CDBG Count 8 Emer ency Housin Consortium 0 Shelter and Support Services-Boccardo Center 9 Family Si ortive Housing, Inc. Brid es Aftercare Program CDBG 10 Family Supportive Housin , Inc. San Jose Family Shelter CDBG 1 1 InnVision Shelter Network CDBG Julian Street Inn CDBG 12 InnVision Shelter Network Commercial Street Inn 13 InnVision Shelter Network CDBG Campbell Shelter CDBG 14 Live Oak Adult Day Services Adult Day Care 15 Law Foundation of Silicon Valley Fair HousingAssistance Project CDBG Next Door Solutions to Domestic Next Door Shelter&Su CDBG Violence pport Services Program CDBG 17 Project Sentinel Tenant-Landlord & Mortgage Services 18 Saratoga Area Senior Coordinating Adult Day Care Program CDBG Council CDBG 19 Senior Adults Legal Assistance Legal Assistance to Elders in Campbell, Morgan Hill & CDBG Saratoga 20 Silicon Valley Independent Housing Program for Persons with Disabilities 21 West Valle CommunityServices communityAccess to Resources and Education CDBG 22 YWCA CDBG Domestic Violence Services CDBG 2. Community Services Grant Through Saratoga's annual Community Service Grant Program funding application and Ongoing Community Service Support Grants, the City allocates General Fund monies to a variety of service organizations that support its commitment to the provision of a social service safety net for the most vulnerable members of the community. In 2013/2014 the City Council allocated $22,825 in funds through its Grant Program and $107,915 in funds through its Ongoing Grant program. Similar amounts were allocated in prior years. The City utilizes its annual Community Service Grant Program allocations and Ongoing Grant Program to fund a variety of agencies and services including: • Saratoga Area Senior Coordinating Council's (SASCC) Adult Day Care Program • West Valley Community Services October 2014 CONSTRAINTS L 1 1 1 U f� HOUSING ES AND RESOURC S A K A T • Catholic Charities Ombudsman Program • SASCC Service and Supplemental Service Support ` • United Way 211 Funding • Housing Trust of Santa Clara County 3. Energy Conservation Energy conservation remains a major priority in the city of Saratoga. The City requires compliance with Title 24 of the California Code of Regulations on the use of energy efficient appliances and insulation. Through compliance with Title 24, new residential development has reduced energy demands. Pacific Gas and Electric Company (PG&E), which provides electricity service in the city of Saratoga, offers public information and technical assistance to homeowners regarding energy conservation. PG&E also provides numerous incentives for energy efficiency in new construction and home remodeling. Remodeling rebates. exist for projects installing three or more upgrades from a flexible menu of options that earn points towards incentives and rebates. This programs incentives range between $1,000 and $4,500. The City of Saratoga requires the submittal of a Cal Green checklist with applications for Design Review for single- and multi-family existing and new residential construction projects. The Cal Green checklist is based on standards produced by the California Building Standards Commission. One of the more recent strategies in building energy-efficient homes is following the U.S. Green Building Council's guidelines for LEED Certification. LEED-certified buildings demonstrate energy and water savings, reduced maintenance costs and improved occupant satisfaction. The LEED for New Construction program has been applied to numerous multi-family projects nationwide. The LEED for Homes program was launched in 2005 and includes standards for new single-family and multi-family home construction. The LEED certification standards are one piece of a coordinated green building program. A green building program considers a broad range of issues including community design, energy efficiency, water conservation, resource-efficient material selection, indoor environmental quality, construction management, and building maintenance. The end result will be buildings that minimize the use of resources; are healthier for people; and mitigate the effects of the environment. The following presents a variety of ways in which Saratoga can promote energy conservation: • Provide information regarding rebate programs and energy audits available through Pacific Gas and Electric; v, October 2014 * HOUSING CONSTRAINTS CIIY UI, S A RAT i A AND RESOURCES • Refer residents and businesses to energy conservation programs such as Build It Green and LEED for Homes; • Develop incentives, such as expedited plan check, for developments that are utilizing green building; • Promote funding opportunities for green buildings, including available rebates and funding through the California Energy Commission; and • Provide resource materials regarding green building and conservation programs. 1 October 2014 � � A S A RAT rr i nriiiii. � p ® S 1 ') Chapter 4: Policy Program This section describes the City of Saratoga's Policy Program for the 2015-2023 Housing Element. The Policy Program describes the specific policy actions necessary to address present and future housing needs, meet the specific requirements of State law, and consider the input by residents and stakeholders. In developing the Policy Program, the City assessed its housing needs, evaluated the performance of existing programs, and received input from the community through participation in housing workshops (see Chapter 2 and Appendices A and C). A. Policy Action Areas The Policy Action Plan for the 2015-2023 Housing Element is organized into five areas: • New Production • Rehabilitation of Existing Housing • Design and Livability • Access to Housing Opportunities • Coordinated Housing Efforts B. Policy Actions Policy Area 4-1 : New Production The City strives to ensure an adequate supply of housing is available to meet future and existing housing needs of all economic segments of the community. Policy Action 4-1.1: Amend Commercial-Neighborhood (Residential High Density) Standards .To further encourage mixed-use development, the City shall amend the C-N(RHD) district standards from a minimum of 20 dwelling units per acre to a minimum of 30 dwelling units per acre, increase the allowable building height from 30 feet to 35 feet and from two to three stories. The City will also modify the standards such that only developments proposed at over 40 dwelling units per acre would require additional Planning Commission findings. The modification to the height limit will require a corresponding General Plan Amendment. In conjunction with the Zoning text amendments, the City will contact the property owners of the six adjoining C-N(RHD) parcels concerning the increase in development potential, and the City's support for redevelopment with higher density residential/mixed use. October 2014 SAKAr A Y n i avnbi. r Objective: Amend Commercial-Neighborhood (Residential High Density) C-N (RHD) Responsible Agency: Community Development Financing Source: General Fund Time Frame: Amend Zoning C-N(RHD) and General Plan within one (1) year of Housing Element adoption Policy Action 4-1 .2: Continue to Implement Density Bonus Ordinance Under Government Code Section 65915-65918, for housing projects of at least five units, cities must grant density bonuses ranging from 5% to 35% (depending on the affordability provided by the housing project) when requested by the project sponsor, and provide up to three incentives or concessions unless specific findings can be made. The City of Saratoga has adopted Density Bonus provisions within its Zoning Code consistent with State law. Objective: Continue Density Bonus Ordinance Implementation Responsible Agency: Community Development Financing Source: General Fund ime Frame: Ongoing Policy Action 4-1.3: Encourage Efficient Use of Energy Resources in Residential Development The City shall encourage housing developers to maximize energy conservation through proactive site, building and building systems design, materials, and equipment. The City encourages the development community to exceed the provisions of Title 24 of the California Building Code. The City shall encourage the use of Energy Star@- rated appliances, other energy-saving technologies and conservation. To enhance the efficient use of energy resources, the City shall review the potential of offering incentives or other strategies that encourage energy conservation. The City shall review and update its website pertaining to dissemination of information for energy resources in residential development to ensure that links are appropriate and functional. Objective: Increased Energy Efficiency Responsible Agency: Community Development Financing Source: General Fund Time Frame: Investigate and develop, as appropriate, incentive strategies within one (1) year of Housing Element adoption, ongoing hereafter October 2014 - t{ S A RAT ? Cf � m Policy Action 4-1.4: Encourage Green Building Practices in Home Construction The City understands the importance of sustainable use of limited resources and encourages the use of "green building" practices in new and existing housing. The City's Design Review process requires that new and existing residential home construction projects include a completed CalGreen checklist. The CalGreen checklist tracks green features incorporated into the home. The checklist is produced by the California Building Standards Commission. In addition, the City provides public information on its website pages, "Go Green in Saratoga" and offers low cost permits as an incentive to install solar panels. Objective: Increased Green Building Practices Responsible Agency: Community Development Financing Source: General Fund Time Frame: Ongoing Policy Action 4-1.5: Encourage and Facilitate Lot Consolidation The City will encourage and facilitate the consolidation of the identified candidate sites (see Policy Action 4-1.1) through a variety of incentives, including but not limited to financial incentives such as CDBG funds, land write-downs, assistance with on- or off-site infrastructure costs, and other pre-development costs associated with the assemblage of multiple parcels. Consolidation will provide the opportunity to develop these underutilized lots to their fullest potential. The City will evaluate the appropriateness of a variety of incentives and provide this information to the developers and other interested parties through print material at City Hall. Objective: Encourage and Facilitate Lot Consolidation in Identified Candidate Sites Responsible Agency: Community Development Financing Source: General Fund ime Frame: Review within 1 year of Housing Element adoption Policy Action 4-1.6: Amend Multi-Family Parking Requirements for Affordable Housing Development in the CN(RHD) district The City understands that parking requirements can be a constraint to development of affordable housing. The City currently has reduced standards for one-bedroom units and units that are exclusively occupied by seniors or students. To ensure that the existing multi- family parking requirement is not a constraint to the development of affordable housing in the CN(RHD) zone, the City shall consider additional reductions to parking requirements for affordable and higher density housing developments including removal of garage requirements and further reductions to guest parking requirements. October 2014 1.1 I 1 01 W , WIN GY ?� ,�1 �{ 1 - O�S .�# A RAT 3 A „, Ob'ective: Amend Multi-Family Parking Requirements for Affordable Housing Development in the CN RHD district Responsible Agency: Communit Development Financing Source: General Fund Time Frame: Amend Parking Ordinance within one 1 year of adoption f the Housing Element Policy Area 4-2: Rehabilitation of Existing Housing Much of the housing stock in Saratoga has been identified to be in decent, suitable condition. However, there is an anticipated need for ongoing maintenance and rehabilitation. Maintenance and rehabilitation activities help ensure the quality of the city's housing stock and neighborhoods are preserved. Policy Action 4-2.1 : Housing Rehabilitation The city has a high level of quality housing. In order to maintain the housing quality, the City will provide information about rehabilitation programs on an individual basis, as needed. Objective: Provide information about rehabilitation programs on an individual basis, as needed Responsible Agency: Community Development Financing Source: General Fund ime Frame: longoing Policy Action 4-2.2: Code Enforcement Program The City will continue to use code enforcement measures when required to ensure that the existing housing stock in the city is maintained and preserved in a safe and sanitary condition. Objective: Maintain the existing housing stock. Responsible Agency: Community Development Financing Source: General Fund ime Frame: Ongoing October 2014 city 01- A fA R AT APROGRAM October 2014 cm of SARAT � A l Policy Action 4-2.3: Historic Preservation Program and Mills Act: The City will implement its historic preservation and Mills Act programs to offer property tax relief as an incentive to preserve, rehabilitate and maintain historic resources in Saratoga. The FiY City's goal is to conserve the historically 191111111111 significant residential structures identified in the 'lllllllllllll City's Heritage Resource Inventory,Y g and encourage additional property owners to Rehabilitated Historic Home pursue listing as a qualified historic property and associated Mills Act incentives for preservation. The City has processed an average of two Mills Act preservation contracts per year over the past Housing Element cycle and expects to continue with an average of two per year over the course of this cycle. Objective: Preserve historic structures Responsible Agency: Community Development Financing Source: General Fund Time Frame: Ongoing Policy Area 4-3: Design and Livability Saratoga has unique, long-established neighborhoods that contribute to community character and guide development within the city. Community design is important in order to ensure quality design of new developments and to enhance the aesthetic qualities of the city. Policy Action 4-3.1: Maintain Community Design The City recognizes the importance of maintaining the character of Saratoga's neighborhoods. The City adopted updates to the Single Family Residential Design Review Handbook in February 2014. In order to ensure quality design of new housing units and modifications to existing housing units, the City will review and revise the General Plan or Zoning Code and enforce the design guidelines and update as needed to provide aesthetic direction for future residential development. Objective: Maintain Community Character Responsible Agency: Community Development Financing Source: General Fund Time Frame: Ongoing October 2014 M-) S 'A""k A T A Iola== Policy Action 4-3.2: Preserve the Saratoga Village The City understands the importance of conserving the community's historic downtown district, "Saratoga Village," to preserve the city's commercial resources and provide opportunities for mixed-use development. The City shall continue to implement design criteria in Saratoga Village to preserve the area's character and to enhance the aesthetic qualities of new residential and commercial developments. Objective: Continue Implementation of Saratoga Village Design Guidelines Responsible Agency: Community Development Financing Source: General Fund Time Frame: �ngoing Policy Area 4-4: Access to Housing Opportunities The City promotes the practice of providing equal housing opportunities for all persons. Housing should be available for all persons regardless of income, family status, presence of a disability, age, race, sex, national origin, or color. The City encourages the provision of housing to meet needs of families with children, elderly households, persons with disabilities, the homeless and all other segments of the community. Policy Action 4-4.1: Encourage Development of Second Dwelling Units The City understands that second dwelling units provide a viable tool to enhance the availability of affordable housing opportunities in Saratoga. The City currently provides policies and procedures for the development of second dwelling units within the Saratoga Municipal Code. To ensure the City's existing policies and procedures for second dwelling units are effective in providing additional affordable housing opportunities, the City shall review the existing Second Unit Ordinance and amend the Second Dwelling Unit standards to eliminate the minimum square footage requirements and reduce the minimum lot size for Second Dwelling Units to 90% or more of the standard lot size for the underlying zoning district. The City will consider additional incentives including: a fee reduction, and exemption of a portion of second unit floor area from lot coverage requirements. In addition, the City shall create an informational brochure regarding Second Dwelling Units to disseminate to the public. Objective: Review/Revise Second Dwelling Unit Ordinance Responsible Agency: Community Development Financing Source: General Fund Time Frame: Review Ordinance within one (1) year of adoption of the Housing Element, and disseminate informational brochure October 2014 S A R A l Policy Action 4-4.2: Zoning Code Amendment for Special Needs Housing In April 2010 and pursuant to SB 2, the City adopted provisions within its Code for transitional and supportive housing within the C-N(RHD) zone district. However, further direction since that time by the State Department of Housing and Community Development (HCD) clarifies that SB 2 requires these uses be permitted in all zone districts where residential uses are permitted. To address this deficiency, the City will amend the Code to identify transitional and supportive housing as a permitted use in all residential zones subject to the same development standards as similar housing in these zones. As part of the SB 2 Zoning Code amendments, the City also adopted provisions to allow emergency shelters by right within the C-N(RHD) zone. However, development standards for shelters were not defined in the Code at that time. As permitted under the provisions of Government Code 65583, the City will establish written, objective development standards for emergency shelters to regulate the following: • The maximum number of beds or persons permitted to be served nightly by the facility. • Off-street parking based upon demonstrated need, provided that the standards do not require more parking for emergency shelters than for other residential or commercial uses within the same zone. • The size and location of exterior and interior onsite waiting and client intake areas. • The provision of onsite management. • The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart. • The length of stay. • Lighting. • Security during hours that the emergency shelter is in operation. Having these standards in place will facilitate the permitting process. Objective: Facilitate Permitting Process for Emergency Shelters, Transitional and Supportive Housing Responsible Agency: Community Development Financing Source: General Fund ime Frame: Pifhin one (1) year of Housing Element adoption Policy Action 4-4.3: Reasonable Accommodation Procedures To comply with State law (SB 520), the City adopted written Reasonable Accommodation Procedures (Municipal Code Section 15-80.025). The City will continue to analyze existing land use controls, building codes, and permit and processing procedures to determine constraints they impose on the development, maintenance, and improvement of October 2014 housing for persons with disabilities. The City will prepare an informational brochure and include information on the City's website to inform residents of the Reasonable Accommodation Procedures. Objective: Implement and Promote Reasonable Accommodation Procedures Responsible Agency: Community Development Financing Source: General Fund ime Frame: ithin 1 year of Housing Element adoption Policy Action 4-4.4: Housing Opportunities for Persons Living with Disabilities San Andreas Regional Center (SARC) is a community-based, private nonprofit corporation serving individuals and their families who reside within Monterey, San Benito, Santa Clara, and Santa Cruz Counties. The SARC reports that 78 percent of their clients with developmental disabilities live with a parent or guardian. As these parents age and become frailer, their adult disabled children will require alternative housing options. The SARC has identified several community-based housing types appropriate for persons living with a developmental disability including licensed community care facilities and group homes; supervised apartment settings with support services; and rent subsidized affordable housing for persons able to live more independently. The City will coordinate with SARC to implement an outreach program informing Saratoga families of housing and services available for persons with developmental disabilities, including making information available on the City's website. Objective: Coordinate with the San Andreas Regional Center to implement an outreach program for Saratoga families and Provide information on the City's website Responsible Agency: Community Development Financing Source: eneral Fund ime Frame: ithin 1 year of Housing Element adoption Policy Action 4-4.5: Development of Housing for Extremely Low-Income Households The City understands the need to encourage and facilitate housing development for households earning 30 percent or less of the median family income. The City will encourage development of housing for extremely-low income households through a variety of activities that may include: • outreach to housing developers (refer to Policy Action 4-5.3), • identifying grant and funding opportunities, • offering additional incentives beyond the density bonus provisions, and/or • a one-time ten percent (10%) increase in site coverage and allowable floor area for second dwelling units deed restricted for below market rate households. - October 2014 i SARAT A r Objective: Housing for Extremely Low-Income Households Responsible Agency: Community Development Financing Source: General Fund ime Frame: Explore activities to encourage development of housing for r xtremely low-income households within six (6) months of ousing Element adoption; annually thereafter Policy Action 4-4.6: Housing Opportunities for Persons Employed in Saratoga The City shall explore opportunities to provide additional local housing options for the city's workforce, including rental housing for families. These opportunities could include increasing public awareness of the City's housing assistance programs and partnering with West Valley College to explore student and faculty housing development. Objective: Explore Opportunities to Encourage Additional Local Workforce Housing through Community Partnerships Responsible Agency: Community Development Financing Source: Peneral Fund ime Frame: ithin one (1) year of Housing Element adoption Policy Action 4-4.7: Monitoring and Preservation of Existing Affordable Housing The City shall continue to maintain a data base to provide for the regular monitoring of deed-restricted units that have the potential of converting to market- rate during the period. Additionally, the City will review funding opportunities for owners of these units to extend and/or renew deed restrictions and/or covenants. To proactively address the conversion of affordable units to market-rate units, the City will investigate strategies to preserve the affordable units. The City shall ensure compliance with noticing requirements and provide for tenant education when a notice of conversion is received. Objective: Monitor and Preserve 170 "At-Risk" Units (Fellowship Plaza and Saratoga Court) Responsible Agency: Community Development Financing Source: General Fund ime Frame: Ongoing/Annual report of units; Preservation strategy within �wo (2) years of Housing Element adoption October 2014 S A RAT A Policy Action 4.4-8: Support Preparation of a Countywide Nexus Study of Affordable Housing Impact Fees The City of Saratoga will work collaboratively with other Santa Clara County cities towards preparation of a joint nexus study for the purpose of establishing an affordable housing impact fee. Objective: Coordinate with other Santa Clara County cities to prepare a oint nexus study to establish an affordable housing impact fee Responsible Agency: Community Development Financing Source: en al Fund Time Frame: ithin one (1) year of Housing Element adoption Policy Area 4-5: Coordinated Housing Efforts The City of Saratoga has limited local resources to provide for housing and housing- related activities. Therefore, to maximize use of limited local resources, the City strives to build partnerships and coordinate housing efforts with outside agencies and organizations. Policy Action 4-5.1: Promote Fair Housing Efforts The City currently disseminates fair housing information packets about Fair Housing Regulations and refers discrimination complaints to the Mid-Peninsula Citizens for Fair Housing or to the County of Santa Clara County Office of Consumer Affairs. The City will continue to participate in the County's mediation program and will continue to support these organizations which provide fair housing assistance including landlord/tenant counseling, homebuyer assistance, and amelioration or removal of identified impediments. Objective: Continue Support of Fair Housing Efforts Responsible Agency: Community Development Financing Source: General Fund Time Frame: Ongoing. Disseminate fair housing information at a variety of community events and locations including the Saratoga Library, City Hall, the City's Website and West Valley College. Policy Action 4-5.2: Develop a Comprehensive Community Outreach Strategy for Housing To ensure the Saratoga community is provided the highest level of access to housing information, the City shall evaluate the effectiveness of existing outreach and community education efforts and develop a comprehensive outreach strategy. The outreach strategy will consider various methods of delivery, including print media, mailers, web- based information and other methods that consider the economic and cultural October 2014 ', i 1115 U1AW SARAT P - &N E '15a . considerations in Saratoga. Objective: Comprehensive Housing Outreach Strategy Responsible Agency: Community Development Financing Source: —General Fund Time Frame: Evaluate existing outreach by December 2015 Implement utreach within one (1) year of Housing Element adoption Policy Action 4-5.3: Partnerships with Development Community The City supports cooperation in the development of affordable housing through working with local housing trust and non-profit agencies. The City will continue to cooperate with developers to provide housing opportunities for lower income households; prioritize efforts and resources to the identified sites for rezoning to promote a variety of housing types, such as rental units that are affordable to lower income households. The City shall also evaluate the effectiveness of its partnerships with housing developers and seek ways to expand and foster its partnerships as appropriate. Objective: Partnerships with Housing Developers Responsible Agency: Community Development Financing Source: eneral Fund Time Frame: Evaluate partnerships within one (1) year of Housing Element doption; annually, thereafter Policy Action 4-5.4: Healthy Community The City supports residential development that promotes healthy life styles (i.e. recreational activities, encourages pedestrian and bicycle use and continued support of the Farmer's Market). In September 2012, the City adopted bicycle parking requirements for retail and financial institutions within commercial districts (except C-H District). The City should continue to evaluate ways to promote healthy life styles. Objective: Promote Healthy Lifestyles Responsible Agency: —Community Development Financing Source: Grants General Fund Time Frame: Pngoing October 2014 KAT A l S A RAT 2015-2023 Quantified Objectives While Saratoga cannot control the amount of housing built during any specific time period, the City intends to make a good faith effort to achieve housing production at a level consistent with its regional housing needs allocation (RHNA). The Quantified Objectives for new construction will be the same as the RHNA. The Quantified Objectives for Housing Rehabilitation and Preservation of At-Risk Rental Housing will be based on available resources and past trends. Table 4-1 Housing Element Quantified Objectives 2015-2023 shows Saratoga's objectives for new construction, housing rehabilitation and preservation of at risk housing. Table 4-1. Housing Element Quantified Objectives 2015-2023 Program Quantified Objective New Construction Extremely Low-Income' 74 Very Low-Income 147 Low Income 95 Moderate Income 104 Above Moderate Income 93 Total 4392 Housing Rehabilitation Very Low-Income 0 Low Income 0 Moderate Income Not Applicable Above Moderate Income 20 Total 20 Preservation of At-Risk Rental Housing Extremely Low-Income3 85 Very Low-Income 85 Low Income Moderate Income 0 Above Moderate Income Not Applicable otal 170 Notes: Extremely Low-Income assumed to be 50 percent of Very Low-Income allocation. 2Total does not include Extremely Low-Income Source:County of Santa Clara Department of Planning &Development 3 As affordability in Saratoga's 170,rent-restricted units is tied to Section 8 contracts (with subsidy levels based on tenant income),an estimated half of these units are assumed to be occupied by Extremely Low Income households,and half occupied by Very Low Income households. October 2014 viii ui 0/ S A RAT ,,i„..,A. The City's Quantified Objective for New Construction will be met through a combination of strategies. The total capacity within the Very Low Income and Low Income categories accommodates up to 276 units, where 242 units is the Quantified Objective. These will be addressed through: • Opportunity Sites providing 173 units (Prospect Road sites) • The by-right zoning for the affordable senior housing at the Fellowship Plaza Retirement Community for 75 units • Second Units providing 18 units (500 of 35 units) The total sites capacity within the Moderate Income category accommodates up to 104 units, which is the Quantified Objective. These will be addressed through: • Opportunity Sites providing 87 units (Gateway + Village site) • Second Units providing 17 units (50% of 35 units) The total sites capacity within the Above Moderate Income category accommodates up to 110 units where 93 units is the Quantified Objective. These will be addressed through: • Approved Projects providing 33 units • Opportunity Sites (vacant parcels) providing 77 units October 2014 i Cn r ui S A RATPROGRAM ��pf SAR1T0 G9 q[FONN�P k October 2014 SARar a Appendix A: Community Outreach A. Introduction During 2014, the City of Saratoga conducted community outreach activities to ensure the Housing Element update reflected the issues and opportunities identified by the community. The workshops were advertised through flyers and notices on the City's website. In addition, the City invited stakeholder groups such as affordable housing developers, professional and community organizations, housing advocacy groups and supportive service providers to participate. The following community workshops were advertised and open to the general public: • January 21, 2014, Planning Commission Study Session, City Hall Conference Room • February 25, 2014, Community Workshop #1, Saratoga Community Center • March 11, 2014, Community Workshop #2, Saratoga Community Center • March 25, 2014, Planning Commission Study Session, City Hall Conference Room During the first Planning Commission Study Session, the Planning Commission and community members were given an overview of the Housing Element update process, the City's Regional Housing Need Allocation, and affordability categories. During the first Community Workshop, participants were provided a more in depth overview of Housing Element law. Participants identified and discussed challenges, opportunities and resources related to housing in Saratoga. At the second Community Workshop, participants discussed potential opportunity sites and strategies for providing affordable housing in Saratoga. Several opportunity sites were identified from all of the potential sites discussed, and strategies to encourage second unit development were seen as a favorable way to provide affordable units. At the second Planning Commission Study Session, participants discussed the pros and cons of the opportunity sites identified at the previous Community Workshop. Based on this discussion the Planning Commission chose the opportunity sites that were determined to be the most suitable. Any future revisions to the draft Housing Element, including any revisions made to respond to HCD's review comments will be provided to the public on the City's website. Prior to the City Council's adoption of the Housing Element, the document will be made available for formal public review for a period of at least 30 days. The following notes were taken during the January 21, 2014 Study Session, February 25, 2014 and March 11, 2014 Community Workshop and March 25 Planning Commission Study Session. October 2014 ^l.l itl l^l T� A COMMUNITY OUTREACH Summary of 1-21-14 Planning Commission Study Session Staff presented the General Plan Housing Element update to the Planning Commission and community members. Staff discussed: • City's progress toward meeting the goals of the 2007-2014 Housing Element. • Overview of the city's new Regional Housing Needs Allocation (RHNA) for the 2015-2023 Housing Element update. • City's deadline to update the Housing Element by January 31, 2015. • Proposed community meeting dates and public hearings. • How the RHNA allocation is determined by the Association of Bay Area Governments (ABAG). • How RHNA is broken down by income categories of Extremely Low Income, Very Low Income, Low Income, Moderate Income and Above Moderate Income. • City must address allocation in all income categories. • Income limits for households and families of various sizes. • The number of housing units that must be provided within each income category. • How the City demonstrates that there is capacity to meet the RHNA on specific sites with appropriate zoning. • City must adopt policies and programs to facilitate preservation, improvement and development of affordable housing. • Achievements that have already been made toward planning for the City's RHNA. October 2014 Summary of 2-25-14 Community Workshop Questions from Participants 1. What is "Housing Need"? 2. Do all of the city's Regional Housing Need Allocations need to be built during the time period? 3. What are the impacts of SB 375 and SB 2 on the city's RHNA? 4. What are the impacts of not completing the Housing Element? 5. What is the timeframe for completion of the Housing Element? 6. What is the percent of low income housing in Saratoga? 7. Would owners of commercial properties identified for housing opportunities be forced to sell their properties? 8. What percentage of the city's RHNA will be for low income people? 9. Why is this growth forced on cities? 10. What is the financial impact on the city for all this new housing? 11 . Why was the Prospect center chosen as a site for residential development in the current housing element? 12. Does Saratoga have Section 8 housing? 13. Is there state funding available for affordable housing development? Comments 1. The City needs to take a creative approach to providing affordable housing in Saratoga. 2. The City should encourage more homeowners to provide second units. 3. The City should annex Saratoga Springs Park where low income people are already living. 4. The City should find a way to get credit toward the RHNA for the many households that have multiple generations living under one roof. October 2014 3 S A E,AT ,,,.,.,,A. MAO� Summary of 3-11-14 Community Workshop Questions from Participants 1 . What is an affordable unit? How much would it rent for? How much would it sell for? What income would a person earn to be considered low-income? What does affordable mean? Can we mandate rental vs. for-sale units? 2. What is a mixed use development? How much residential vs. how much commercial development would be built? 3. How is the RHNA count allocated? How does Plan Bay Area and the Sustainable Community Strategy figure into the Housing Element update? How does SBl and SB33 factor into Housing Element update? 4. Will the City rezone large lot residential neighborhoods for smaller lots? What is the reality that any of the sites identified will be developed during the time frame of the Housing Element? Comments Not enough people are present tonight to make a decision on what sites should be selected to accommodate housing. Why aren't property owners of these sites here tonight? How will development impacts be addressed? What is the maximum height a fire truck ladder can reach? Why did 75 units recently get approved at the Odd Fellows property? Potential Sites Discussed Village Meaningful development in the Village is limited by small lot sizes Can city parking lots be used for podium style housing development? Argonaut Center Why use Argonaut shopping center (Safeway) as a site when there are only 2 grocery stores in Saratoga? Why not build a shopping center like the Safeway in Los Gatos with parking below and housing above? Safeway site is not near transit and would create too much traffic. Properties that are in good shape with newer/viable commercial are harder to make feasible as housing sites. General consensus that Safeway was not a good site. Quito Center Can we convert Roku buildings into housing units? Roku is doing very well and actually needs room to expand. It wouldn't be suitable to convert these buildings to housing; but the site would be viable for redevelopment with mixed use. October 2014 crn or �/ S A RAT „i.. COMMUNITY OUTREACH The neighborhood is very concerned about traffic issues with new development. Residential development creates less traffic than office development Prospect Sites Why limit the height at Prospect to just 35 feet & 3 stories? Because this is the highest limit of any zone in the city. How do these sites compare to development in adjacent San Jose sites? San Jose standard in the area is 55 dwelling units/acre for residential development. Let's look at the triangular site at the intersections of Hamilton and Campbell Ave in San Jose as an example of affordable housing. 4 stories over podium parking. Abrams Site What are zoning and height limits at Abrams site? 20 units/acre and 2 story/30 foot height limit. Mr. Abrams is holding on to the property and wants the site to be used for office development. Second Units How do we keep track of how many 2nd units we have? Can we institute an Amnesty program to try and get all unpermitted 2nd units permitted? Prioritization of Sites 22 units at Saratoga Village Center 58 at Southwest Gateway sites 108 at Abrams site Increase height and density at Prospect site to accommodate an additional 96 units i October 2014 — I r-- LIIY UI ` FI =� S A AT Summary of 3-25-14 Planning Commission Study Session All Planning Commissioners were present at the meeting; and approximately 25 community members were in attendance. CDD James Lindsay began the meeting giving U datec He then discussed lon that proposed s been shared to date about the Housing Element p changes to the Second Unit ordinance to encourage greater development of 2nd units, including eliminating the minimum square footage requirement for 2nd units and reductions to the minimum lot size required for 2nd units. (See attached Meeting Poster notes with proposed Zoning Ordinance amendment language). Mr. Lindsay further discussed proposed Zoning Ordinance amendments to require a minimum of 30 dwelling units per acre in the C-N(RHD) zone and allow for a building height of three stories up to a maximum of 35 feet, with a corresponding General Plan amendment. Consultant Geoff Bradley discussed why planning in an allowance of additional housing units as a buffer is recommended for this cycle of Saratoga's Housing Element Update. Mr. Lindsay summarized the following housing candidate sites where no rezoning would be necessary: Housing Candidate Sites: Saratoga Village Center 22 units (@20 du/ac) Saratoga-Sunnyvale Road 65 units (@15 du/ac) Saratoga Avenue @ Cox 81 units (@15 du/ac) Several comments were submitted eoothe since the Saratoga Avlenuet@ Cox site.workshop Mr. regarding traffic impacts from development of Lindsay presented different peak hour traffic comparisons to illustrate the differences in trip generation of office and residential uses. Saratoga Avenue @ Cox Conceptual Peak Hour Traffic Comparisons: 100% Office 118,000 SF (25% FAR) 180±Trips 50% Office 59,000 SF 90±Trips 50% Residential 81 units (15 du/ac) 60±Trips Combined 150±Trips 20% Office 23,000 SF 35±Trips 80% Residential 130 units 90±Trips Combined 125±Trips 100% Residential 163 units 115±Trips October 2014 S A l\I\AT ,,riA �� © W Several community members asked questions of the Planning Staff and consultants. The following summarizes those questions and responses where appropriate: 1. Can we designate the Bellicitti properties on Quito and Allendale for additional housing? -No, although they are already zoned for residential, they are both tied up in long term Williamson Act contracts for continued agricultural use. 2. Our prior RHNA was only around 230 units, why did it double? -It is a calculation prepared by ABAG, based on our "fair share" of the regions housing needs. 3. Why does the City need to be in compliance with State Law? -Primary reason is to avoid lawsuits. 4. What are deed restricted units?- Units that have restrictions recorded on the title requiring that they be rented or sold to lower and moderate income people. 5. Are lost revenues from conversion of commercial property factored into selection of these sites for housing? -Generally not, due to the fact that these sites are underutilized and not generating significant revenue for the city. Additionally, since these units will likely be condominiums or townhomes, they have a higher turnover rate, and could potentially generate more property tax revenues than other office uses. 6. Why can't the City designate the Prospect site for 40 to 50 units per acre to satisfy all the RHNA? -The site is proposed at a minimum of 30 dwelling units per acre and could potentially be developed higher, but the City still needs to accommodate moderate income people and families at lower densities. The Planning Commission began the conversation of which sites they think would be the best to accommodate the city's housing needs. The Saratoga Village Center was accepted as a Candidate Site. Several concerns were raised about both of the other sites including; traffic, impacts to schools, loss of commercial sites, and impacts to neighboring residents. The Planning Commission then opened the discussion back up to the community to hear the pros and cons for each of the sites. October 2014 I-I I Y U 1 0-% S A RAT ,,,,�„A • OUTREACH Saratoga Avenue@ Cox Site Pros Cons 1. Plan for the site now vs. face 1. If it's developed for housing it could development pressures in the future never be used as a park 2. Professional Office is not a high 2. Traffic is terrible on Saratoga Avenue demand land use because it is near the Hwy 85 interchange 3. Development pressure currently 3. Site might be used for future lightrail exists parking 4. The site can accommodate more 4. Identifying site for housing limits future units than the Saratoga-Sunnyvale development, such as for a Roku office Road site expansion 5. Would have significant impact on Quito neighborhood Saratoga-Sunnyvale Road Pros Cons 1. Site is underutilized 1. Lot consolidation is required 2. Site is not surrounded by single family 2. Traffic uses 3. Loss of Commercially zoned land The Planning Commission then discussed the pros and cons. The majority of the Commissioners directed staff to identify the Saratoga-Sunnyvale Road site and the Saratoga Village Center as the two housing opportunity sites for the Housing Element. October 2014 Lilt ui :% - S A R A T A C91TP[os� Summary of 6-24-14 Planning Commission Study Session- Draft Housing Element Review All Planning Commissioners, except Commissioner Grover, were present at the meeting; and approximately 5 community members were in attendance. The Planning Commission Chair, Mary Lynne Bernald gave an overview of Housing Element law and Consultant Heather Bradley presented the Draft Housing Element. Community members had the following questions which were answered by City Staff and the Consultants. 1 . Will residential uses displace commercial properties? 2. Do students in existing housing count as student housing? 3. Vacancy rates on page 218 do not add up. 4. The age of housing stock not relevant to Saratoga when properties are worth so much. 5. Why should the city have to provide affordable housing when people cannot afford to live here- people could move somewhere else to buy a house? 6. The City Council should contact state to object RHNA. 7. There are not enough people attending this meeting to decide the fate of the entire city of Saratoga. 8. Was the potential for student housing at West Valley College reviewed? 9. There is a water shortage and there is not enough water for all these new homes that are to be built. 10.Is highlighting underutilized sites cost driven? 11 .How much of the new housing will really be affordable? 12.When do the new policies take affect? 13.Are we lowering our standards in this city? October 2014 CIIY OF S A R A T A • OUTREACH 4y ut SARgTO cgUFORN�p October 2014 �ii7 ut S A KAT Appendix B: Residential Land Resources A. Sites to Accommodate the 2014-2022 RHNA State law requires each jurisdiction in California to demonstrate the availability of adequate sites through appropriate zoning and development standards and the availability of public services and facilities. These available sites must provide the necessary policy and regulatory guidance to accommodate a variety of housing types at a variety income levels. The City must demonstrate through policies and regulations that the estimated capacity of adequate sites will be able to accommodate the projected housing need for the 2015-2023 Planning Period. The State Department of Finance (DOF) is responsible for projecting the total State-wide housing demand, with the State Department of Housing and Community Development (HCD) apportioning this demand to each of the State's regional governing bodies. This demand represents the number of additional units needed to accommodate the anticipated growth in the number of households, to replace expected demolitions and conversions of housing units to non-housing units, and to achieve a future vacancy rate that allows for healthy functioning of the housing market. The Association of Bay Area Governments (ABAG) is the Metropolitan Planning Organization (MPO), for determining and allocating the region's projected new housing demand to municipalities within the MPO's jurisdiction. The allocation of projected housing demand is divided into four income categories: • Very Low-Income: 0 percent to 50 percent of the area median income; • Low-Income: 51 percent to 80 percent of the area median income; • Moderate-Income: 81 percent to 120 percent of the area median income; and • Above Moderate-Income: more than 120 percent of the median income. Pursuant to AB 2634 (Statutes of 2006), the City of Saratoga must also address the projected housing need for Extremely Low-Income (ELI) households. ELI households are defined as households earning less than 30 percent of the area's median income. The projected Extremely Low-Income need can be assumed as 50 percent of the total need for Very Low-Income households. Through the Regional Housing Needs Assessment (RHNA) process, regional-level housing growth needs are allocated to individual cities and counties comprising the Metropolitan Planning Organization (MPO). The allocation takes into account factors such as market demand for housing, employment opportunities, the availability of suitable sites and public facilities, commuting patterns, type and tenure of housing need, and others. In determining a jurisdiction's share of new housing needs by income category, the allocation is adjusted to avoid an over-concentration of lower income households in any one jurisdiction. October 2014 SAR,AT �r„A 'Nil, imam The current RHNA prepared by the Association of Bay Area Governments (ABAG) allocates housing needs for the period from January 1, 2014 to October 31, 2022. The RHNA identifies 439 units as the city of Saratoga's share of the region's housing for the 2015-2023 planning period. This section documents the availability of sites for future development and the adequacy of these sites to address Saratoga's regional housing needs. The City plans to fulfill its share of regional housing needs through: • Residential projects in process with occupancy post January 1, 2014; • Vacant and underutilized sites currently zoned for residential and mixed use development; and • Second units. 1 . Projects in Process a. Approved Units Several residential projects with development entitlements will contribute towards addressing Saratoga's housing needs. Projects range in size from several small 2 to 3 unit projects to a 12 unit condominium development, and will provide a total of 23 new units. As indicated in Table B-1, all of these units are market rate and would thus be suitable for Above Moderate Income households. Table B-1. Approved Units Table B-1 Approved Unite APN Address Total Net Affordability Category Parcels 403-24-008 13686 Quito Road 3 Above Moderate 503-25-013 14639 Big Basin Way 2 Above Moderate 397-27-029 20440 Arbeleche Lane 3 Above Moderate 503-25-015 1 14651 Big Basin Way 3 Above Moderate 386-30-037 &-038 12250 Saratoga Sunnyvale Road 12 Above Moderate Total 23 Source:City of Saratoga b. Approved Subdivisions In addition to the projects with entitlements described above, as of March 2014, the City has approved 10 new single family residential parcels which remain to be developed. Given current market demand, the City anticipates applications for these units to be approved and the units to be constructed within the 2015-2023 Housing Element planning period. Table B-2 shows the locations of these pending units. These units would be affordable to Above Moderate income households. October 2014 SARATnA �� Table B-2. Approved Subdivisions Table B-2 Approved Subdivisions APN Address Total Net Affordability Category Units 503-10-006 22700 Mount Eden Road 2 Above Moderate 503-82-006 Paramount Drive 6 Above Moderate 510-06-005 19370 Saratoga Los Gatos Road 2 Above Moderate Total 10 Source:City of Saratoga Community Development Department 2. Sites Capacity to Meet Regional Share Goals To enable the City of Saratoga to meet RHNA goals, the City must evaluate its capacity to provide available sites to meet projected future housing needs. Subtracting the 33 units in approved projects and subdivisions described above, the City has a remaining RHNA need of 406 units. The City must demonstrate it has or will make available adequate sites with appropriate zoning and development standards and with services and facilities to accommodate the remaining RHNA need. As presented in the following section, the City has identified sufficient vacant and underutilized sites to accommodate its regional growth needs, and will adopt supplemental zoning and development standards to specifically encourage and facilitate housing for lower income households. a. Vacant Land Most of the vacant land in the city of Saratoga is located in hillside areas. Table B-3 summarizes the vacant land in the city currently zoned for residential use. It is assumed the estimated capacity of 77 dwelling units would provide residential units suitable to Above-Moderate Income households. October 2014 L"P', I Y ll I� Saar Ga Table B-3. Vacant Land Inventory Table B-3 Vacant Land Inventory No. of Average Projected Land Use Category Zoning Parcels Acreage Density Dwelling Units Hillside Conservation Residential 1 du/parcel/ (RHC) HR 31 160.6 6 du/acre 411 min Hillside Open Space (OS-H) HR 2 12.8 1 du/parcel 2 Medium Density Residential (M- R-1-10,000 9 1.9 1 du/parcel 9 10 Medium Density Residential (M- R-1-12,500 2 1.2 1 du/parcel 2 12.5 Medium Density Residential (M- R-1-15,000 1 0.4 1 du/parcel 1 15 Low Density Residential (RLD) R-1-20,000 3 2.5 1 du/parcel 3 Very Low Density Residential R-1-40,000 18 31.8 1 du/parcel 18 (RVLD) Total 1 66 283.9 77 Density Based on City of Saratoga preliminary application review Source:City of Saratoga b. Prospect Road Candidate C-N(RHD) Sites for Mixed-Use Development As part of the 2007-2014 Housing Element, the City identified six adjoining parcels located on Prospect Road between Saratoga Avenue and Lawrence Expressway suitable for multi-family development. These parcels were rezoned from Commercial Neighborhood (CN) to Commercial Neighborhood Residential High Density C-N(RHD) during the 2007- 2014 planning cycle to encourage mixed-use development with a minimum net density standard of 20 du/ac, allowing units to be counted towards the City's lower income site requirement pursuant to the default densities specified under AB 2348. Mixed-use development is permitted by right in the in the C-N(RHD) district. The potential development capacity was planned at 87 dwelling units on the identified underutilized sites utilizing the 20 du/ac density standard. The City has determined that these parcels can accommodate additional development beyond 20 du/ac given the density of existing development in the vicinity. Parcels in the city of San Jose border the candidate sites on three sides. City of San Jose development regulations for this area allow residential densities starting at 55 du/ac. To make this accommodation the City of Saratoga will modify the existing C-N(RHD) ordinance to allow for increased height from 30 feet to 35 feet and increase the permitted number of stories from two to three in order to allow mixed-use development with a residential density of at least 30 du/ac. There is potential to develop 183 units on the sites utilizing the 30 du/ac density standard. Table 13- 4 describes the realistic development capacity for each of the six parcels. October 2014 l ill ul SARAT „i, ARESIDENTIAL LAND RESOURCES Table B-4. Prospect Road Candidate C-N(RHD) Sites Table B-4 Prospect Road Candidate C-N(RHD)Sites Parcel APN Existing Use Acres General Zoning Existing Proposed Capacity Notes Description Plan Square Density (#of Footage (Minimum) units) 1 386-10- Retail, 043 Restaurant, 2.27 CR CN(RHD) 23,021 30 du/ac 68 Personal Services 2 386-10- Personal 004 Services 1.00 CR CN(RHD) 9,357 30 du/ac 30 3 386-10- Personal Potential for 055 Services 0.29 CR CN(RHD) 5,147 30 du/ac 8 lot 4 386-10- consolidation 056 Office 0.70 CR CN(RHD) 3,081 30 du/ac 21 5 386-10- Retail 0.93 CR CN(RHD) 11,381 30 du/ac 28 006 6 386-10- Retail, Personal 007 Services, 0.93 CR CN(RHD) 14,527 30 du/ac 28 Office Sub-Total 6.12 Sub-Total 183 Acreage reduction for 0.3 Total potential accommodation of 173 emergency shelter Source:City of Saratoga Community Development Department Exhibit B-1 on the following page shows the location of the Prospect Road sites, as well as Saratoga Village and Gateway candidate sites described later in this chapter. October 2014 _ CI I Y Ur.W. SARATP,PA RESIDENTIAL LAND RESOURCES Exhibit B-1. Housing Opportunity Sites ..,. .._.._.._... ._.__.._......_ _.... �.�.._....._.._.. Prospect Road �- ~Cl;rista- ' _Prospect Sites McAuliffe Prospect•� Gateway Sites Elementor/ High School Blue Hills r Elementar/\ Kevin d� A�-urE \Moron Pork Park Y 7 i� COXAV enue Brookglen d Park o a EI Quito � Pork a ID Con res 9 C Spring Park\\ 0 C O QArgonaut O Elementary Q\\\,", U' 0 i C-36 Gardiner �t Park CIVIC Center 8 Foothill Park Allendale Avenue Eavenswcod Park; t4 Foothill Saratoga Elementary High School Redwood Q Middle School s West valley College y Marshall Lane N Elen-entar/ D i C � ""°°d Village Sites � ,J Historical Park *- � Saratoga Fellowship Plaza �O Elementary rr 1 Feet Legend 0 1,250 2500 5.000 -Candidate Sites Schools Saratoga ParksL._f City Limits =State Route 85 Highway Housing Opportunity Sites Exhibit 1 October 2014 CM 1 1 SA RATffiww 00ft Y. Prospect Road Sites Realistic Capacity Existing uses within the six underutilized parcels consist of single-story retail, fast food restaurant and carwash uses surrounded by parking. The uses are located in older single story structures built between the 1960s and 1980's. The structures are characterized by outdated architectural styles consisting of flat roofs with interior court parking offering limited retail exposure. These sites are well-suited for higher density residential development. The parcels are located along a major transportation corridor and easily accessed by bus transit with proximity to an expressway. Across from these parcels is a grocery store, retail mall and high school. The parcels contain adequate infrastructure to support residential development and no environmental constraints have been identified with the potential to limit residential development. I, The six parcels are located near higher density developments in the neighboring W oil . . - city of San Jose. These projects illustrate the development trends occurring in the area. ®- � The City of Saratoga adopted ordinance amendments to permit mixed-use with high density residential on these six Candidate / Sites under the new C-N(RHD) zoning district (15-19.035). The minimum residential density is 20 units per net acre conforming to the Existing development at the Prospect Road Site design standards of the Mixed-Use ordinance (15-58). This C-N(RHD) district also accommodates emergency shelters, transitional housing, and supportive housing for homeless individuals and families. To further encourage development of mixed-use high density housing in Saratoga, this Housing Element update includes policy actions that amend the existing zoning standards for these parcels to allow for increased densities at a minimum of 30 dwelling units per net acre with height allowance increases of three stories and 35 feet. This Housing Element update continues to include policy actions to support partnerships with the development community to provide housing opportunities for lower income households; and encourage lot consolidation of smaller parcels. Consistent with SB 2, the City has adopted provisions for Emergency Shelters within the C-N(RHD) zoning district. In order to reserve C-N(RHD) acreage for potential emergency shelter use, the City has reduced the total acreage on these six parcels available for mixed use development by 0.3 acres and reduced the corresponding unit potential by ten units. The City has determined that there is a potential capacity of 173 dwelling units on these parcels given the following considerations: • Site size, • Accommodation of ground floor commercial uses fronting the street, • Recent development trends occurring in the area, • Availability of adequate infrastructure and services, • Acreage reduction for emergency shelters, and October 2014 1.1 l l lll� � _ _••-i - - -- — SARAT A 14a .._._..- • Ordinance amendments to require a minimum net density of 30 du/ac. C. Saratoga Village Center Candidate Sites for Mixed-Use Development The City has identified two adjoining parcels with potential for residential development on Big Basin Way (known as the historic Saratoga Village). These parcels are located between Highway 9 and Third Street, and are zoned Commercial Historic District 1 (CH-1). Mixed-use development is a conditionally permitted use in this zone. The potential redevelopment capacity for these parcels was determined through an evaluation of the longstanding retail vacancies at the site, past development interest in the site and existing capacity under current zoning regulations.The site can accommodate 22 units at a density of 20 dwelling units per net acre with a mix of commercial uses. Table B-5 describes the realistic development capacity for each of the three parcels that make up the site. Exhibit B-1 shows the location of the three parcels. Table B-5. Village Sites Inventory Table B-5 Village Sites Inventory Parcel APN lid*g Use Acres Generd Zorkg Exisl'iV Ropased Cgxxly Notes Desoom Pkn Square Der* ( urts) Footage (MR) 1 517-09-015 Retail, 1.04 CR CH-1 15,914 20 du/ac 21 Lots under Personal same Service ownership 2 517-09-047 Personal CB CR CF-H 3,400 20 du/ac 1 Service Total 1.12 Total 22 Source:City of Saratoga Community Development Department Saratoga Village Center Sites Realistic Capacity Existing uses within the two underutilized parcels consist of retail and service uses setback from the street and surrounded by parking. The uses are located in single story structures built in the 1950's and 1960's. The structures have been predominately vacant for a number of years following the discontinued operation of a small grocery market. The shopping center is characterized by outdated ranch style architecture and building orientation that provides limited retail exposure. The large surface parking lot in the front of the property is inconsistent with the development pattern and character of the Village along Big Basin Way. The City reviewed an application for mixed-use development on the site in 2009 that included 25 residential units and 21,571 square feet of commercial space. For economic reasons the development was not pursued at that time. However, the City has determined that the — -_ { current market conditions and the site's prime location near the gateway of the downtown make the site well suited for increased commercial density mixed with medium density residential development. The City had determined that the Saratoga Village Center sites are suitable for development of 22 units. The sites are located in close proximity to other multi-family development, bus transit and Highway 9. d. Saratoga Gateway Candidate Sites for Mixed-Use Development The City has identified four adjoining parcels with potential for residential development on Saratoga-Sunnyvale Road (known as the Gateway Area). These parcels are located on the west side of Saratoga-Sunnyvale Road to the north of the Southern Pacific Railroad line, and are zoned Commercial Visitor (C-V). Mixed-use development is a conditionally permitted use in this zone. The City has determined the potential redevelopment capacity for these parcels based on the underutilized nature of the site, past and current development trends in the vicinity, and existing capacity under current zoning regulations. The site can accommodate 65 units at a density of 15 dwelling units per acre with a mix of commercial uses. The unit potential was determined through an evaluation of the site's proximity to a moderate density housing development located adjacent to the site, and the development trend within the city's Gateway Area of housing units located behind a new commercial building. Table B-6 describes the realistic development capacity for each of the four parcels that make up the site. Exhibit B-1 shows the location of the four parcels. Table B-6. Gateway Sites Inventory Table B-6 Gateway Saes Inventory V�e APN Existing Use Acres General Zoning Existing Proposed Capacity Notes Description (net) Plan Square Density (#of Footage units)2 1 366- Mini 3.22' CR CV 104,526 15 du/ac 36 Potential October 2014 RESIDENTIAL LAND RESOURCES 12- Storage for lot 072 console- 2 366- Retail 1.02 CR CV 12,330 15 du/ac 11 dation 12- 054 3 366- Funeral 1.03 CR CV 11,288 15 du/ac 11 12- Home 065 4 366- Retail .58 CR CV 5,870 15 du/ac 7 12- 066 Total Total 65 'includes deduction for 25' creek bank setback 2 Includes deduction of land area for horizontal mixed use Source:City of Saratoga Community Development Department Gateway Sites Realistic Capacity Existing development on the four underutilized parcels consists of retail and service uses setback from the street and surrounded by parking. The buildings are all single story structures built in the late 1960's and the mid 1980's. The structures on the sites contain: a public storage business, a funeral home, and various service and retail businesses. The center is characterized by outdated ranch style architecture and building orientation and setbacks that provides limited retail exposure. The City has determined that the ,f market conditions and the site's location near similarly approved - - - mixed-use development on Sunnyvale- Saratoga Road in the Gateway Area make the site suitable for higher - - density residential and commercial mixed-use development. The site is located on a major transportation Existing development at Gateway Site corridor that is easily accessed by bus transit. Therefore, the City has determined these 65 units to be affordable to moderate income households. e. Fellowship Plaza Y91 t i The City has identified Fellowship Plaza as having the greatest potential to accommodate the RHNA need for Very Low and Low Income households. The retirement iii x_115 ,11 9y I$ -' ,r nan .3" - ) S A RAT �A u!onl,lrr- community is currently comprised of 150 independent living apartments for seniors. The Conditional Use Permit for Fellowship Plaza allows for the development of a minimum of 75 additional units affordable to Very Low- and Low-Income households located within a 10.5 acre parcel. The Conditional Use Permit specifies that development of these units is by-right without discretionary action beyond Design Review at a minimum of 20 du/ac. Fellowship Plaza Table B-7. Fellowship Plaza Retirement Community Table B-7 Fellowship Plaza Retirement Community APN Address Existing Use Acres General Zoning Plan 397-12-016 14500 Fruitvale Ave. Fellowship 10.53 CFS R-1 -40,000 Plaza Source:City of Saratoga f. Second Unit Potential City records show that a total of 65 Second Dwelling Units were constructed between 2001 and 2014, with 22 approved during the most recent 2007-2014 planning period (Table 2-20). The City anticipates that demand for future Second Dwelling Unit permits will increase with modifications to the City's Second Unit Ordinance through adoption of the 2015-2023 Housing Element. Ordinance modifications will include elimination of the minimum unit size and reductions to the requirements for minimum lot size. To further encourage second unit development, the City will prepare an informational brochure as part of an overall program to encourage second unit development. Taking into consideration the strong support for second units expressed at the Housing Element community workshops, and past construction achievements, the City anticipates receiving applications for an average of 4 to 5 second units per year. The City's goal is to achieve 35 Second Dwelling Units over the course of the eight year planning period. A survey (Craigslist May 9, 2014 & May 20, 2014) of second unit rentals in Saratoga and surrounding cities showed rents ranging from $850 to $2,000, with a median rent for a 1 bedroom of $1,600 and $1,360 for a studio. These rents are in the range of Very Low to Moderate affordability for Santa Clara County. Based on feedback from owners of second units, City staff understands that a large percentage of second units are occupied rent free by family members or domestic workers. The City does not maintain records on rents for second units other than deed restricted units. Surveys done in San Mateo County for the nearby cities of Woodside, Portola Valley, Los Altos Hills, and Hillsborough indicate that between 62 and 74 percent of all second units are available to Very Low or Extremely Low households. These cities are demographically similar to October 2014 S A RAT Saratoga. In Saratoga, the majority of recently constructed second units have utilized the floor area and site coverage bonus provisions which require that the unit be deed restricted for rent to below market rate households. During the 2007-2014 Housing Element Cycle, the City issued permits for 18 second units, 13 of which were deed restricted second units. The City estimates that the deed restricted units would be available for Low income households and the non-deed restricted units would be available for Moderate income households. 3. Sites Summary State Housing Element Law requires local governments to prepare an inventory of land suitable for residential development, including vacant sites, sites having the potential for redevelopment, and an analysis of the relationship of zoning, public facilities, and services to these sites. The inventory of land suitable for residential development must be used to identify sites that can be developed for housing within the planning period. In terms of evaluating the adequacy of these sites to address the affordability targets established by the RHNA, State Housing Element law provides for the use of "default densities" to assess affordability. Based on its population, Saratoga falls within the default density of 20 units/acre for providing sites affordable to Very Low- and Low-Income households. For Moderate-Income households, a threshold of 12 units/acre is used to reflect a reasonable density for achieving moderate income development. Table B-8 summarizes the City of Saratoga's capacity to meet RHNA goals. Table B-8. Sites Summary Table B-8 Sites Summary Very Low- Low- Moderate- Above Total Incomel Income Income Moderate- Income 2014-2022 RHNA Need 147 95 104 93 439 October 2014 SARAT Approved Units/ 0 0 0 33 33 Subdivisions Vacant Land Capacity 0 0 0 77 77 C-N(RHD) Candidate 173 0 0 173 Sites Saratoga Village Center 0 22 0 22 Sites Saratoga Gateway 65 65 Sites Fellowship Plaza 75 0 0 75 Retirement Community Second Unit Potential 18 17 35 TOTAL Unit Potential 283 87 110 480 'The Extremely Low-Income need is assumed to be 50 percent of the Very Low-Income allocation=73 units. Source:City of Saratoga B. Assisted Units "At-Risk" of Conversion The State Housing Element Law requires jurisdictions to analyze government-assisted housing that is eligible for conversion from lower income to market rate housing over the next 10 years. State Law identifies housing assistance as a rental subsidy, mortgage subsidy, or mortgage insurance to an assisted housing development. Government assisted housing converts to market rate housing for a number of reasons including expiring subsidies, mortgage repayments, or expiration of affordability restrictions. This section will address: • An inventory of assisted housing units that are "at-risk" of converting to market rate housing; • An analysis of the costs of preserving and/or replacing these units; • Resources that could be used to preserve "at-risk" units; • Program efforts for preservation of at-risk housing units; and • Quantified objectives for the number of "at-risk" units to be preserved during the Housing Element Planning Period. 1. Inventory of At-Risk Units As presented in Table B-9 below, Saratoga has two rent-restricted affordable housing projects within its jurisdiction. Fellowship Plaza, owned by the not-for-profit California Odd Fellows Foundation, provides 150 apartments for very low income seniors. Saratoga Court Senior Apartments was acquired in 1982 by the non-profit Mid-Peninsula Housing Coalition (Mid-Pen) and provides 20 very low income independent living units for seniors; - October 2014 S A FIAT RESIDENTIAL LAND RESOURCES the City of Saratoga provided Mid-Pen with $274,000 in CDBG funds to assist in the acquisition. r syf :F � Both of these projects are considered potentially at-risk of conversion during the ensuing ten years due to expiring use restrictions and Section 8 contracts subject to periodic renewals. However, both projects are owned and managed by non-profit organizations that have a public purpose to Iiiw `r� develop and maintain affordable housing for - �} low income and special needs populations; Saratoga Court Complex and are thus considered at low risk of conversion. Table B-9. Publicly Assisted Rental Housing Table B-9 Publicly Assisted Rental Housing Deed Potential Project/ Name/ Housing # Units Owner Name Restriction Conversion Address Type Source Date Fellowship Plaza Odd Fellows Sec 202 3/2020 14520 Fruitvale Senior 150 Foundation Sec 8 contract 3/2014 Ave. Non-profit Saratoga Court Sec 8 NC, 1/2019 18855 Cox Ave. Senior 20 Mid-Peninsula Housing CDBG (Non-profit) 2/2018 Sec 8 contract Source:California Housing Partnership,March 2014 2. Preservation and Replacement Costs As both at-risk projects in Saratoga are already owned by non-profit entities, their conversion to market rate rentals is highly unlikely. Nonetheless, as the HUD Section 8 contracts and/or capital subsidies have the potential to expire within the next ten years, for purposes of the Housing Element, these projects are technically considered at potential risk of conversion. Preservation or replacement of Saratoga's at-risk projects can be achieved in two primary ways: 1) provision of rental assistance using other sources of funds; or 2) replacement or development of new affordable rental units. These options are discussed below, along with a general cost estimate for each. a. Rental Assistance October 2014 — S A RAT RESIDENTIALA The long-term availability of funding at the federal level for Section 8 contract renewal is uncertain. If terminated, rent subsidies using alternative State or local funding sources could be used to maintain affordability. Subsides could be structured similar to the Section 8 program, whereby HUD pays the owners the difference between what tenants can afford to pay (30% household income) and what HUD establishes as the Fair Market Rent (FMR). The feasibility of this alternative, in the case of the property owners, depends on their willingness to continue to accept rental vouchers and limit rents to fair market levels. Non-profit owners are more likely to be willing to accept other rent subsidies, while for- profit owners will compare the negotiated rents to market rents. As depicted in Table B-10, the cost of providing rent subsidies to all 170 at-risk units in Saratoga (the difference between HUD Fair market Rents and maximum affordable rents for very low income households) is generally estimated at $516,000 per year, translating to roughly $10 million in subsidies over a 20-year period. Table B-10. Annual Rent Subsidies Required to Preserve At-risk units Table B-10 Annual Rent Subsidies Required to Preserve At-Risk Units 2013 Household Maximum. Total Total Number of Number Voucher Household Per Unit Income Affordable Monthly Annual Bedrooms of Units Payment Size (50%AMI) Rent Subsidy Subsidy Subsidy Standard 1 bdrm 170 $1,315 2 person $42,450 $1,061 $253 $43,000 $516,000 Source:Santa Clara Housing Authority 2013 Voucher Payment Standards;State HCD 2013 Income Limits. Table calculated by Karen Warner Associates, Inc. b. Replacement Cost Saratoga may consider the cost of unit replacement with new construction. Construction cost estimates include per unit land costs and all hard and soft costs associated with construction. The analysis assumes the replacement units are garden- style apartments with parking provided on-site, with an average construction cost of $150 per square foot; podium style development is typically twice the cost. Square footage estimates are based on the average unit size per the prevailing sales in the region. Land costs have been estimated based on a handful of multi-family property sales in Saratoga over the past several years, which average $100 per square foot. October 2014 — _ uii ur S A RAT ,.,.,,!'`. RESIDENTIAL LAND RESOURCES Table B-11. Replacement Costs of At-Risk Units ,- Table B-11 Replacement Costs of At-Risk Units Unit Size Costs per Square Average Square Replacement Cost Replacement Cost Foot Foot/Unit per Unit for 170 At-Risk Units 1 bedroom $250 775 $194,000 $33 million Notes: Based on the prevailing market conditions. Units assumed as garden-style apartments with on-site parking. 213ased on average square footage reported by RealFacts. 3 Assumes$150 per square foot construction costs and$100 per square foot multi-family land costs. C. Cost Comparison Given their non-profit ownership, it is highly unlikely that either of the two "at risk" projects will convert to market-uses. Nevertheless, the above analysis attempts to estimate the cost of preserving the at-risk units under various options. The annual cost of providing rental subsidies required to preserve the 170 assisted units is relatively low at $516,000. However, long-term affordability of the units cannot be ensured in this manner, unless it was structured as a one-time rent buy-down. The option of acquiring or developing 170 replacement units is very costly at an estimated $33 million and constrained by a variety of factors, including limited purchase opportunities of large multi-family properties and the scarcity of land for new development. The best option to preserve the at-risk units thus appears to be the purchase of affordability covenants through a one-time rent buy- down. 3. Resources for Preservation A variety of programs exist to assist cities acquire, replace, or subsidize at-risk affordable housing units. The following summarizes financial resources available to the City of Saratoga. L Federal Programs • HOME Investment Partnership- HOME funds are granted by formula basis from HUD to increase the supply of decent, safe, sanitary, and affordable housing to lower income households. Eligible activities include new construction, acquisition, rental assistance and rehabilitation. • Section 8 Rental Assistance Program - The Section 8 Rental Assistance program provides rental assistance payments to owners of private, market rate units on behalf of very low-income tenants. • Section 811/202 Program (Supportive Housing for Person with October 2014 - SARAT A AF Disabilities/Elderly) - Non-profit and consumer cooperatives can receive no interest capital advances from HUD under the Section 202 program for the construction of very low-income rental housing for seniors and persons with disabilities. These funds can be used in conjunction with Section 811, which can be used to develop group homes, independent living facilities and immediate care facilities. Eligible activities include acquisition, rehabilitation, new construction and rental assistance. ii. State Programs • California Housing Finance Agency (CaIHFA) Multifamily Programs - CaIFHA's Multifamily Programs provide permanent financing for the acquisition, rehabilitation, and preservation or new construction of rental housing that includes affordable rents for low- and moderate- income families and individuals. One of the programs is the Acquisition Finance Program, which is designed to facilitate the acquisition of at-risk affordable housing developments and provide low cost funding to preserve affordability. • Low Income Housing Tax Credit (LIHTC) -This program provides tax credits to individuals and corporations that invest in low-income rental housing. Tax credits are sold to those with high liability and proceeds are used to create housing. Eligible activities include new construction, rehabilitation and acquisition of properties. • California Community Reinvestment Corporation (CCRC) - The California Community Reinvestment Corporation is a multi-family affordable housing lender whose mission is to increase the availability of affordable housing for low-income families, seniors, and residents with special needs by facilitating private capital flow from its investors for debt and equity to developers of affordable housing. Eligible activities include new construction, rehabilitation and acquisition of properties. iii. Local Programs • Monitoring At-Risk Units -Through the Community Development Department, the City continually monitors the eligibility of affordable housing to convert to market-rate housing. Constant monitoring allows the City to anticipate the timeframe by which affordability covenants would expire, allowing the City to implement various resources to ensure the continued affordability of the housing units. iv. Qualified Entities The following lists qualified entities who are interested in purchasing government- subsidized multi-family projects within Santa Clara County. October 2014 I _, CM W(W S A RAT ; RESIDENTIALA. LAN' RESOURCES • Affordable Housing Foundation • BRIDGE Housing Corporation • Cambrian Center, Inc. • Charities Housing Development Corporation • Christian Church Homes of Northern California, Inc. • Community Home Builders and Associates • Community Housing Developers, Inc. • Matinah Salaam • Mid-Peninsula Housing Coalition • Palo Alto Housing Corporation • Palo Alto Senior Housing Project, Inc. • Satellite Housing, Inc. • South County Housing, Inc. a. Quantified Objectives Housing Element law requires that cities establish the maximum number of units that can be preserved over the planning period. Two assisted projects with a total of 170 units are at-risk of converting to market-rate housing within the planning period. Should either of these properties lose their current funding subsidies and be at real risk of conversion, the City of Saratoga will explore appropriate funding opportunities to assist in their preservation. October 2014 CIIY 01W S A R A T P, APASTPERFORMANCE� Appendix C: Past Performance Table C-1. Evaluation of 2007-2014 Housing Element Past Performance Table C-1 Evaluation of 2007-2014 Housing Element Past Performance Goal 1: To Accommodate the City's Fair Share of the Bay Area Regional Housing Need Allocation for All Income GroUDS. Objective: To designate sufficient vacant land and/or sites with re-use potential to accommodate the City's allocation under the Regional Housing Needs Determination (RHND) adopted by the Association of Bay Area Governments. The RHND allocation for Saratoga between January 1, 2007 and June 30, 2014 is as follows: Program I.l: Zoning Code Changes for Mixed-Use Overlay To further encourage mixed-use development, the City shall amend the Mixed-Use Overlay District standards: Program ' To allow both rental and owner occupied residential Activity development • To remove the 50 percent limit on residential floor area • To remove the 1,250 square foot maximum on new dwelling units The City's Zoning Ordinance was revised on April 21 , 2010 and achieved the following: Level of Allowed both rental and owner occupied residential development Achievement Removed the 50 percent limit on residential floor area • Removed the 1,250 square foot maximum on new dwelling units As a result, five residential units in mixed-use projects were permitted in the Saratoga Village during this period. Program 1.2:Amend Fellowship Plaza Retirement Community Use Permit To accommodate at least 50 percent of the city's lower-income need (75 units, the City shall amend the Fellowship Plaza Retirement Community Program Conditional Use Permit to allow the by-right development without Activity discretionary action at a minimum of 75 renter and/or owner occupied units and 20 dwelling units per acre affordable to very low- and low income households. Level of The Planning Commission amended the Fellowship Plaza Conditional Use Achievement Permit in November 2013. The City anticipates receiving a development - application during the 2014-2022 planning cycle. October 2014 i S A RATA Rk„ . --- --- - ------- _ Program 1.3: Provide for Adequate Sites for Housing Development The City shall establish a new mixed-use zoning district permitting rental and owner-occupied multifamily residential development as a matter or right with a minimum density standard of 20 du/ac. The very low- and low-income housing Program Activity need shall be accommodated on sites with densities and development standards that permit at least 16 dwelling units per site and do not unduly constrain the development of multi-family h o u s i n g . Level of Achievement The City. Council adopted Ordinance 277 on April 7, 2010 creating the new Mixed-Use Zoning District. The new M ixed-Use Z oning District shall encompass a Program Activity minimum of 3.75 acres to accommodate the remaining 50 percent of the City's lower income need (75 units). A 3.75 acre area on Prospect Road near Lawrence Expressway was re-zoned C-N(RHD) to allow multi-family development by- right at a minimum standard of 20 dwelling units per acre. To Level of Achievement further encourage multi-family residential development, the 2015-2023 Housing Element update includes a policy program to increase the minimum density to 30 du/ac and increase the height limit from 30 to 35 feet. Goal 2: Encourage the Construction of Housing Affordable to lower- and Moderate- Income Household and Increase Affordable Housing Options. Objective:To increase the supply of affordable housing and housing options in Saratoga to house additional households and families earning less than 80%of the Santa Clara County median income. Program 2.1: Density Bonuses and Affordable Requirement for Very Low- and Low- Income Housing Program Activity Continue implementation of the Density Bonus Ordinance. The City's Community Development Department continues to Level of Achievement implement Article 15-81 (Housing Density Bonus) of the City's Municipal Code. October 2014 t { S A R A T ? A Ir `cc, �&%tic1=' Program 2.2: Encourage Efficient Use of Energy Resources in Residential Development The City shall encourage housing developers to maximize energy conservation through proactive site, building, and building systems design, materials, and equipment. The City encourages the development community to exceed the Program Activity provisions of Title 24 of the California Building Code. The City shall encourage the use of Energy Star@- rated appliances, other energy-saving technologies and conservation. To enhance the efficient use of energy resources, the City shall review the potential of offering incentives or other strategies In September 2013, the City Council approved a waiver of the Level of Achievement Energy Calculation Review fee for all deed restricted affordable housing units that meet CalGreen requirements. Twelve deed restricted units were permitted. Program 2.3:Encourage Green Building Practices in Home Construction The City understands the importance of sustainable use of limited resources and encourages the use of "green building" Program Activity practices in new and existing housing. The City's Design Review process requires that new and existing residential home construction projects include a completed GreenPoint Rated Checklist. The GreenPoint Rated Checklist tracks areen features The City requires compliance with Green Building standards. Level of Achievement Information on green building and energy conservation is available on the City's website. Program 2.4:Encourage and Facilitate Lot Consolidation The City will encourage and facilitate the consolidation of the identified candidate sites through a variety of incentives, including but not limited to: financial incentives such as CDBG funds, land write-downs, assistance with on- or off-site infrastructure costs, and other pre-development costs Program Activity associated with the assemblage of multiple parcels. Consolidation will provide the opportunity to develop these underutilized lots to their fullest potential. The City will evaluate the appropriateness of a variety of incentives and provide this information to the developers and other The City Council on September 4, 2013 approved a waiver of the application costs associated with lot mergers, in an amount Level of Achievement not to exceed $5,000 for projects that provide a minimum of 20 percent deed restricted units affordable to low and very-low income households. October 2014 I i R 11 S A RAT' A U RM coin) Program 2.5: Review In-Lieu Park Facilities Fee for Affordable Housing Development To ensure that the existing in-lieu park facilities fee is not a constraint on the development of affordable housing, the City shall review the fee and revise, as appropriate. If the City does Program Activity not revise the fee, alternative strategies will be considered to address any potential future constraints to the development of housing. The City Council on September 4, 2013 approved a waiver of Level of Achievement the park-in-lieu fee for all new deed restricted units affordable to low and very-low income seniors. Program 2.6: Review Multi-Family Parking Requirement for Affordable Housing Development To ensure that the existing multi-family parking requirement is not a constraint to the development of affordable housing, the City shall review the requirement and revise, as appropriate. If Program Activity the City does not revise the requirement, alternative strategies will be considered to address any potential future constraints to the development of housing. The City Council adopted Ordinance 307 on October 16, 2013 Level of Achievement that decreased parking requirements for senior and student housing projects. Program 2.7: Development of Housing for Extremely Low-Income Households The City understands the need to encourage and facilitate housing development for households earning 30 percent or less of the median family income. The City will encourage development of housing for extremely-low income households Program Activity through a variety of activities that may include outreaching to housing developers, identifying grant and funding opportunities, and/or offering additional incentives beyond the density bonus provisions. Second dwelling units are a source of housing for low income households. The City encourages their development by providing a 10 percent increase in floor and lot coverage if the Level of Achievement units are deed restricted, thereby limiting their rental to below market rate. Thirteen deed restricted units and five non-deed restricted units were permitted during this period. October 2014 . .. QWCi I� u1 S A RAT 9�A n i anroui. Program 2.8: Housing Opportunities for Persons Employed in Saratoga The City shall explore opportunities to provide additional local housing options for the city's workforce, including rental housing for families. These opportunities could include Program Activity increasing public awareness of the City's housing assistance programs and partnering with local universities to explore student and faculty housing development. The City has contacted the West Valley College administration and expressed the City's willingness to assist West Valley College Level of Achievement in the exploration of opportunities to develop housing for both students and faculty. Goal 3:Rehabilitation of Existing Housing Objective:To eliminate substandard housing conditions in Saratoga through financial assistance to low-income homeowners who are unable to properly maintain or repair their homes. Program 3.1: Saratoqa Housinq Rehabilitation and Assistance Proqram Subject to available CDBG funds, the City will continue to Program Activity provide funds to the County of Santa Clara's office of Affordable Housing for the Housing Rehabilitation Program. The City shall continue to refer interested residents to the County CDBG funds are no longer available from the County for this Level of Achievement program. However, in 2008 a $100,000 grant was made to a household in Saratoga under this program. Program 3.2: Code Enforcement The City has a high level of quality housing. In order to Program Activity maintain the housing quality, the City will provide information about rehabilitation programs on an individual basis, as CDBG funds are no longer available from the County for this Level of Achievement program. The City continues to perform code enforcement, however, no home repair funds for lower income residents were available. October 2014 r •t Ciiti ut �% S A RATA ... Goal 4:Promote Design and livability Objective:Saratoga has unique, long-established neighborhoods that contribute to community character and guide development within the City.Community design is important in order to ensure quality design of new developments and to enhance the aesthetic qualities of the City. Program 4.1: Maintain Community Design To ensure quality design of new housing units and modifications to existing housing units, the City will review and Program Activity revise the General Plan or Zoning Code and enforce the design guidelines and update as needed to provide aesthetic direction for future residential development. Level of Achievement The City Council adopted an update to the Single-Family Design Guideline in February 2014. Program 4.2:Encourage Mixed-use Development in Saratoga Village The City shall evaluate the appropriateness of revisions to the Zoning Code to further encourage rental and/or owner- occupied residential development in the Saratoga Village. Program Activity Amendments and modifications to the existing Zoning Code may include mixed-use development standards, infill development standards, and adaptive reuse, live/work and multi-family development standards. The City Council adopted Ordinance 277 on April 7, 2010 for Level of Achievement Mixed-Use development standards. As a result, five residential units in mixed-use projects in the Saratoga Village were permitted durinq this period. Program 4.3: Preserve the Saratoga Village The City understands the importance of conserving the community's historic downtown district, "Saratoga Village", to preserve the city's commercial resources and provide Program Activity opportunities for mixed-use development. The City shall continue to implement design criteria in Saratoga Village to preserve the area's character and to enhance the aesthetic qualities of new residential and commercial developments. The Community Development Department continues to Level of Achievement distribute copies of the Village Design Guidelines and these guidelines are implemented during the review of all - developments in the Saratoga Village. October 2014 ;. S A RAT Goal 5: Access to Housing Opportunities Objective:The City promotes the practice of providing equal housing opportunities for all persons. Housing should be available for all persons regardless of income, family status, presence of a disability, age, race, sex, national origin, or color. The City encourages the provision of housing to meet needs of families with children, elderly households, persons with disabilities, the homeless and all other segments of Program 5.1: Encourage Development of Second Dwelling Units To ensure the City's existing policies and procedures for second dwelling units are effective in providing additional Program Activity affordable housing opportunities, the City shall review the existing Second Unit Ordinance and identify revisions, as appropriate, to further encourage the development of second dwelling units. The Community Development Department reviewed Article 15- 56 (Second Dwelling Units) of the City's Municipal Code and Level of Achievement has decided that comprehensive revisions would occur during the 2015-2023 Housing Element Update. Eighteen units were added, with thirteen of these being deed restricted during this Program 5.2:Senior Housing and Affordable Senior Housing The City recognizes the unique needs of its elderly residents. Seniors may have fixed incomes and need unique housing features that are not typically included in market rate housing. Program Activity The City shall encourage, through incentives (e.g. parking reductions, etc.), the development of senior housing that offers a wide range of housing choices, for both affordable and market rate, from independent living to assisted living with services on-site, including healthcare, nutrition, transportation, Level of Achievement The City Council adopted Ordinance 307 on October 16, 2013 that decreased parking requirements for senior housing projects. October 2014 I I • S A K A T Program 5.3: Compliance with SB 2 (Sections 65582, 65583, and 65589.5 of the Government Code) Pursuant to the provisions of SB 2, the City shall analyze and revise the existing Zoning Code to allow for emergency shelters, transitional housing, and supportive housing for homeless individuals and families. The City will comply with SB 2 by: • Amending the zoning code to provide sufficient capacity to accommodate emergency shelters to meet the identified local homeless need, pursuant to Program Activity SB 2. The City will consider and analyze the commercial (C-N, C-V and C-H) zoning districts to meet the requirements of SB 2. • Amending the Zoning Code to ensure shelters are only subject to the same development and management standards that apply to residential or commercial uses within the same zone. • Amending the Zoning Code to permit transitional and supportive housing as a residential use in all residential zones and only subject to those restrictions that ar mlv The City Council adopted Ordinance 277 on April 21, 2010 that Level of Achievement included a new zoning district C-N(RHD) that allowed the siting of emergency shelters, transitional housing, and supportive housing for homeless individuals and families. Program 5.4: Reasonable Accommodations To comply with State law (SB 520), the City will analyze existing land use controls, building codes, and permit and processing procedures to determine constraints they impose on the development, maintenance, and improvement of housing for persons with disabilities. Based on its findings, the Program Activity City will develop a policy for reasonable accommodation to provide relief to Code regulations and permitting procedures that have a discriminatory effect on housing for individuals with disabilities, The policy shall include procedures for requesting accommodation, a timeline for processing and appeals, and criteria for determining whether a requested accommodation is reasonable. The City Council adopted Ordinance 277 on April 21, 2010 that Level of Achievement established a process for reasonable accommodations to provide relief to Code regulations and permitting procedures to individuals with disabilities. October 2014 ,t l 1.111 UI S A RA T P,�i A Program 5.5: Zoning to Encourage and Facilitate Single-Room Occupancy Units (SRO's) The City understands the importance of single-room occupancy units to provide housing opportunities for lower- income individuals, persons with disabilities, the elderly and formerly homeless individuals. The City shall amend the Zoning Program Activity Code to establish explicit definitions for and regulatory standards addressing single- room occupancy units. The Zoning Code will include development standards and permitting procedures that encourage and facilitate development of SRO housing, consistent with State law. The City Council adopted Ordinance 313 on February 5, 2014 Level of Achievement to amend the Zoning Code to include development standards for Sinqle Room Occupancy (SRO) housing. Program 5.6: Monitoring and Preservation of Existing Affordable Housing The City s hall continue to maintain a data base to provide for the regular monitoring of deed-restricted units that have the potential of converting to market- rate during the planning period. Additionally, the City will review funding opportunities for owners of these units to extend and/or renew Program Activity deed restrictions and/or covenants. To proactively address the conversion of affordable units to market-rate units concern, the City will investigate strategies to preserve the affordable units. The City shall ensure compliance with noticing requirements and provide for tenant education when a notice of conversion is received. The City maintains a list of the affordable units within the City and along with the County of Santa Clara Office of Affordable Level of Achievement Housing is prepared to ensure compliance with noticing requirements and tenant education when notice of conversion is received. No deed restricted units were converted during this October 2014 .,�. cilY OhU SARATII/ A PAST PERFORMANCE Goal 6: Coordinated Housing Efforts Objective:The City of Saratoga has limited local resources to provide for housing and housing-related activities. Therefore, to maximize use of limited local resources, the City strives to build partnerships and coordinate housing efforts with outside agencies and organizations. Program 6.1: Promote Fair Housing Efforts The City currently disseminates fair housing information packets about Fair Housing Regulations and refers discrimination complaints to the Mid-Peninsula Citizens for Fair Housing or to the County of Santa Clara County Office of Program Activity Consumer Affairs. The City will continue to participate in the County's mediation program and will continue to support these organizations which provide fair housing assistance including landlord/tenant counseling, homebuyer assistance, and amelioration or removal of identified impediments. The Community Development Department continues to refer all Level of Achievement housing discrimination complaints to the Santa Clara County Office of Consumer Affairs and continues to participate in the County's mediation program for housing discrimination issues. Program 6.2: Develop a Comprehensive Community Outreach Strategy for Housing To ensure the Saratoga community is provided the highest level of access to housing information, the City shall evaluate the effectiveness of existing outreach and community Program Activity education efforts and develop a comprehensive outreach strategy. The outreach strategy will consider various methods of delivery, including print media, mailers, web-based information and other methods that consider the economic and cultural considerations in Saratoga. The City's website includes links that direct the public to the City Level of Achievement Code and the General Plan, which includes the Housing Element. The City also uses print media, direct mailings and social media to disseminate housing information. October 2014 -� cm U1 S A RAT3 A PAST PERFORMANCE Program 6.3: Partnerships with Development Community The City supports cooperation in the development of affordable housing through working with local housing trust and non-profit agencies. The City will continue to cooperate with developers to provide housing opportunities for lower Program Activity income households; prioritize efforts and resources to the identified sites for rezoning to promote a variety of housing types, such as rental units, affordable to lower income households. The City shall also evaluate the effectiveness of its partnerships with housing developers and seek ways to expand and foster its partnerships as appropriate. The City is prepared to cooperate with developers in the Level of Achievement construction of affordable housing by helping to identify possible sites that could be rezoned to promote a variety of housing types, such as rental units, affordable to lower income Program 6.4: Healthy Community The City supports residential development that promotes Program Activity healthy life styles (i.e. recreational activities, encourages pedestrian and bicycle use and continued support of the The City Council adopted Ordinance 294 on September 4, 2012 Level of Achievement to require retail and financial uses in all commercial districts, with the exception of the C-H District to provide off-street October 2014 �i i ui - S A RAT PA PAST PERFORMANCE Table C-2. Progress in Achieving Housing Element Quantified Objectives 2007-2014 Table C-2 Progress in Achieving Housing Element Quantified Objectives 2007 - 2014 Program Quantified Objective Level of Achievement New Construction Very Low-Income 90 0 Low Income 68 15 Moderate Income 77 7 Above Moderate Income 57 30 Total 292 52 Housing Rehabilitation Very Low-Income 10 1 Low Income 10 0 Moderate Income NotApplicable NotApplicable Above Moderate Income NotApplicable NotApplicable Total 20 1 Preservation of At-Risk Rental Housing Extremely Low Income 85 85 Very Low-Income 85 85 Low Income 0 NotApplicable Moderate Income 0 NotApplicable Above Moderate Income NotApplicable NotApplicable Total 170 170 October 2014 �: -a, S A R A T A 4110-4` m RM Appendix D: Glossary of Terms Above-Moderate-Income Household. A household with an annual income usually greater than 120% of the area median family income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available legibility limits established by the U.S. Department of housing and Urban Development (HUD) for the §8 housing program. Apartment. An apartment is one (1) or more rooms in an apartment house or dwelling occupied or intended or designated for occupancy by one (1) family for sleeping or living purposes and containing one (1 ) kitchen. Assisted Housing. Generally multi-family rental housing, but sometimes single- family ownership units, whose construction, financing, sales prices, or rents have been subsidized by federal, state, or local housing programs including, but not limited to Federal state, or local housing programs including, but not limited to Federal §8 (new construction, substantial rehabilitation, and loan management set-asides), Federal §s 213, 236, and 202, Federal §221 (d) (3) (below-market interest rate program), Federal §101 (rent supplement assistance), CDBG, FmHA §515, multi-family.mortgage revenue bond programs, local redevelopment and in lieu fee programs, and units developed pursuant to local inclusionary housing and density bonus programs. Below-market-rate (BMR). Any housing unit specifically priced to be sold or rented to low- or moderate-income households for an amount less than the fair-market value of the unit. Both the State of California and the U.S. Department of Housing and Urban Development set standards for determining which households qualify as "low income" or "moderate income." (2) The financing of housing at less than prevailing interest rates. Build-out. That level of urban development characterized by full occupancy of all developable sites in accordance with the General Plan; the maximum level of development envisioned by the General Plan. Build-out does not assume that each parcel is developed to include all floor area or housing units possible under zoning regulations. October 2014 Community Development Block Grant (CDBG). A grant program administered by the U.S. Department of Housing and Urban Development (HUD) on a formula basis for entitlement communities and by the State Department of Housing and Community Development (HCD) for non-entitled jurisdictions. This grant allots money to cities and counties for housing rehabilitation and community development, including public facilities and economic development Condominium. A structure of two or more units, the interior spaces of which are individually owned; the balance of the property (both land and building) is owned in common by the owners of the individual units. (See "Townhouse.") Covenants, Conditions, and Restrictions (CC&Rs). A term used to describe restrictive limitations that may be placed on property and its use, and which usually are made a condition of holding title or lease. Deed. A legal document which affects the transfer of ownership of real estate from the seller to the buyer. Density Bonus. The allocation of development rights that allow a parcel to accommodate additional square footage or additional residential units beyond the maximum for which the parcel is zoned, usually in exchange for the provision or preservation of an amenity at the same site or at another location. Density, Residential. The number of permanent residential dwelling units per acre of land. Densities specified in the General Plan may be expressed in units per gross acre or per net developable acre. Developable Land. Land that is suitable as a location for structures and that can be developed free of hazards to, and without disruption of, or significant impact on, natural resource areas. Down Payment. Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed. Duplex. A detached building under single ownership that is designed for occupation as the residence of two families living independently of each other. Dwelling Unit (du). A building or portion of a building containing one or more rooms, designed for or used by one family for living or sleeping purposes, and having a separate bathroom and only one kitchen or kitchenette. See Housing Unit. October 2014 I.IIY itl J ' S A R A T A Elderly Housing. Typically one- and two-bedroom apartments or condominiums designed to meet the needs of persons 62 years of age and older or, if more than 150 units, persons 55 years of age and older, and restricted to occupancy by them. Emergency Shelter. A facility that provides immediate and short-term housing and supplemental services for the homeless. Shelters come in many sizes, but an optimum size is considered to be 20 to 40 beds. Supplemental services may include food, counseling, and access to other social programs. (See "Homeless" and "Transitional Housing.") Extremely Low-Income Household. A household with an annual income equal to or less than 300 of the area median family income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available eligibility limits established by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing program. Fair Market Rent. The rent, including utility allowances, determined by the United States Department of Housing and Urban Development for purposed of administering the Section 8 Existing Housing Program. Family. (1) Two or more persons related by birth, marriage, or adoption [U.S. Bureau of the Census]. (2) An Individual or a group of persons living together who constitute a bona fide single-family housekeeping unit in a dwelling unit, not including a fraternity, sorority, club, or other group of persons occupying a hotel, lodging house or institution of any kind [California]. General Plan. A comprehensive, long-term plan mandated by State Planning Law for the physical development of a city or county and any land outside its boundaries which, in its judgment, bears relation to its planning. The plan shall consist of seven required elements: land use, circulation, open space, conservation, housing, safety, and noise. The plan must include a statement of development policies and a diagram or diagrams illustrating the policies. Goal. A general, overall, and ultimate purpose, aim, or end toward which the City will direct effort. Green Building. Green or sustainable building is the practice of creating healthier and more resource-efficient models of construction, renovation, operation, maintenance, and demolition. (US Environmental Protection Agency) Historic Preservation. The preservation of historically significant structures and neighborhoods until such time as, and in order to facilitate, restoration and October 2014 SAKAT A rehabilitation of the buildings) to a former condition. Historic Property. A historic property is a structure or site that has significant historic, architectural, or cultural value. Household. All those persons—related or unrelated—who occupy a single housing unit. (See "Family.") Housing and Community Development Department (HCD). The State agency that has principal responsibility for assessing, planning for, and assisting communities to meet the needs of low-and moderate-income households. Housing Element. One of the seven State-mandated elements of a local general plan, it assesses the existing and projected housing needs of all economic segments of the community, identifies potential sites adequate to provide the amount and kind of housing needed, and contains adopted goals, policies, and implementation programs for the preservation, improvement, and development of housing. Under State law, Housing Elements must be updated every five years. Housing Payment. For ownership housing, this is defined as the mortgage payment, property taxes, insurance and utilities. For rental housing this is defined as rent and utilities. Housing Ratio. The ratio of the monthly housing payment to total gross monthly income. Also Called Payment-to-Income Ratio or Front-End Ratio. Housing Unit. The place of permanent or customary abode of a person or family. A housing unit may be a single-family dwelling, a multi-family dwelling, a condominium, a modular home, a mobile home, a cooperative, or any other residential unit considered real property under State law. Housing and Urban Development, U.S. Department of (HUD). A cabinet-level department of the federal government that administers housing and community development programs. Implementing Policies. The City's statements of its commitments to consistent actions. Implementation. Actions, procedures, programs, or techniques that carry out policies. Infill Development. The development of new housing or other buildings on scattered vacant lots in a built-up area or on new building parcels created by permitted lot splits. October 2014 SARAT 1A Jobs-Housing Balance. A ratio used to describe the adequacy of the housing supply within a defined area to meet the needs of persons working within the same area. The General Plan uses ABAG's definition which is a job total equal to 1 .2 times the number of housing units within the area under consideration. Land Use Classification. A system for classifying and designating the appropriate use of properties. Live-Work Units. Buildings or spaces within buildings that are used jointly for commercial and residential purposes where the residential use of the space is secondary or accessory to the primary use as a place of work. Low-Income Household. A household with an annual income usually no greater than 51%-80% of the area median family income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available eligibility limits established by the U.S. Department of Housing and Urban Development (HUD) for the §8 housing program. Low-income Housing Tax Credits. Tax reductions provided by the federal and State governments for investors in housing for low-income households. Manufactured Housing. Residential structures that are constructed entirely in the factory, and which since June 15, 1976, have been regulated by the federal Manufactured Home Construction and Safety Standards Act of 1974 under the administration of the U. S. Department of Housing and Urban Development (HUD). (See "Mobile Home" and "Modular Unit.") Mixed-use. Properties on which various uses, such as office, commercial, institutional, and residential, are combined in a single building or on a single site in an integrated development project with significant functional interrelationships and a coherent physical design. A "single site" may include contiguous properties. Moderate-income Household. A household with an annual income usually no greater than 81%-120% of the area median family income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available eligibility limits established by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing program. Monthly Housing Expense. Total principal, interest, taxes, and insurance paid by the borrower on a monthly basis. Used with gross income to determine affordability. Multiple Family Building. A detached building designed and used exclusively as a dwelling by three or more families occupying separate suites. October 2014 , S A RAT A �xs o �c� C�p1Ctxsr fi r bA Ordinance. A law or regulation set forth and adopted by a governmental authority, usually a city or county. Overcrowding Housing Unit. A housing unit in which the members of the household or group are prevented from the enjoyment of privacy because of small room size and housing size. The U.S. Bureau of Census defines an overcrowded housing unit as one which is occupied by more than one person per room. Parcel. A lot or tract of land. Planned Unit. Development (PUD) A self-contained development, often with a mixture of housing types and densities, in which subdivision and zoning controls are applied to the project as a whole rather than to individual lots, as in most subdivisions. Densities and lot sizes are calculated for the entire development, usually permitting a trade-off between the clustering of houses and provision of common open space or other amenities. Planning Area. The area directly addressed by the general plan. A city's planning area typically encompasses the city limits and potentially annexable land within its sphere of influence. Policy. A specific statement of principle or of guiding actions that implies a clear commitment but is not mandatory. A general direction that a governmental agency sets to follow, in order to meet its objectives before undertaking an action program. (See "Program.") Poverty Level. As used by the U.S. Census, families and unrelated individuals are classified as being above or below the poverty level based on a poverty index that provides a range of income cutoffs or "poverty thresholds" varying by size of family, number of children, and age of householder. The income cutoffs are updated each year to reflect the change in the Consumer Price Index. Program. An action, activity, or strategy carried out in response to adopted policy to achieve a specific goal or objective. Policies and programs establish the "who, "how" and "when" for carrying out the "what" and "where" of goals and objectives. Redevelop. To demolish existing buildings; or to increase the overall floor area existing on a property; or both; irrespective of whether a change occurs in land use. Regional. Pertaining to activities or economies at a scale greater than that of a single jurisdiction, and affecting a broad geographic area. Regional Housing Needs Assessment (RHNA). A quantification by ABAG of existing and projected housing need, by household income group, for all localities within a region. October 2014 i S A R A T A C C uCY „, Rehabilitation. The repair, preservation, and/or improvement of substandard housing. Residential. Land designated in the General Plan and zoning ordinance for building consisting of dwelling units. May be improved, vacant, or unimproved. (See "Dwelling Unit.") Residential Care Facility. A facility that provides 24-hour care and supervision to its residents. Residential, Multiple Family. Usually three or more dwelling units on a single site, which may be in the same or separate buildings. Residential, Single-Family. A single dwelling unit on a building site. Retrofit. To add materials and/or devices to an existing building or system to improve its operation, safety, or efficiency. Buildings have been retrofitted to use solar energy and to strengthen their ability to withstand earthquakes, for example. Rezoning. An amendment to the map to effect a change in the nature, density, or intensity of uses allowed in a zoning district and/or on a designated parcel or land area. Second Unit. A self-contained living unit, either attached to or detached from, and in addition to, the primary residential unit on a single lot. "Granny Flat" is one type of second unit. Section 8 Rental Assistance Program. A federal (HUD) rent-subsidy program that is one of the main sources of federal housing assistance for low-income households. The program operates by providing "housing assistance payments" to owners, developers, and public housing agencies to make up the difference between the "Fair Market Rent" of a unit (set by HUD) and the household's contribution toward the rent, which is calculated at 300 of the household's adjusted gross monthly income (GMI). "Section 8" includes programs for new construction, existing housing, and substantial or moderate housing rehabilitation. Shared Living. The occupancy of a dwelling unit by persons of more than one family in order to reduce housing expenses and provide social contact, mutual support, and assistance. Shared living facilities serving six or fewer persons are permitted in all residential districts by §1566.3 of the California Health and Safety Code. Single-family Dwelling, Attached. A dwelling unit occupied or intended for occupancy by only one household that is structurally connected with at least one other such dwelling unit. (See "Townhouse.") October 2014 I f S A,- Ft A T A ,i F Single-family Dwelling, Detached. A dwelling unit occupied or intended for occupancy by only one household that is structurally independent from any other such dwelling unit or structure intended for residential or other use. (See "Family.") Single Room Occupancy (SRO). A single room, typically 80-250 square feet, with a sink and closet, but which requires the occupant to share a communal bathroom, shower, and kitchen. Subsidize. To assist by payment of a sum of money or by the granting to terms or favors that reduces the need for monetary expenditures. Housing subsidies may take the forms of mortgage interest deductions or tax credits from federal and/or state income taxes, sale or lease at less than market value of land to be used for the construction of housing, payments to supplement a minimum affordable rent, and the like. Substandard Housing. Residential dwellings that, because of their physical condition, do not provide safe and sanitary housing. Supportive Housing. Housing with no limit on length of stay, that is occupied by the target population as defined in California Health and Safety Code Section 53260(d), and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. "Target population" means adults with low incomes having one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health conditions, or individuals eligible for services provided under the Lanterman Developmental Disabilities Services Act and may, among other populations, include families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, or homeless people. [California Health and Safety Code Sections 50675.14(b) and 53260(d)] Target Areas. Specifically designated sections of the community where loans and grants are made to bring about a specific outcome, such as the rehabilitation of housing affordable by very-low and low-income households. Tax Increment. Additional tax revenues that result from increases in property values within a redevelopment area. State law permits the tax increment to be earmarked for redevelopment purposes but requires at least 20% to be used to increase and improve the community's supply of very low and low income housing. Tenure. A housing unit is "owned" if the owner or co-owner lives in the unit, even if it is "owned only if it is mortgaged or not fully paid for. A cooperative or condominium unit is "owned only if the owner or co-owner lives in it. All other occupied units are classified as "rented," including units rented for cash rent and those occupied without payment October 2014 S A RAT. A ,.. • OF of cash rent. Townhouse. A townhouse is a dwelling unit located in a group of three (3) or more attached dwelling units with no dwelling unit located above or below another and with each dwelling unit having its own exterior entrance. Transitional Housing. Shelter provided to the homeless for an extended period, often as long as 18 months, and generally integrated with other social services and counseling programs to assist in the transition to self-sufficiency through the acquisition of a stable income and permanent housing. (See "homeless" and "Emergency Shelter.") Undevelopable. Specific areas where topographic, geologic, and/or superficial soil conditions indicate a significant danger to future occupants and a liability to the City are designated as "undevelopable" by the City. October 2014 1 t,,