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HomeMy WebLinkAboutReso. 1984 - 165 - Amending the general plan of the city of redding by adopting a new housing element • 110 411 RESOLUTION NO. gq- /66. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING THE GENERAL PLAN OF THE CITY OF REDDING BY ADOPTING A NEW HOUSING ELEMENT. WHEREAS, following the required public hearings therefor, the Planning Commission of the City of Redding has recommended to the City Council that the Housing Element of the City' s General Plan be amended by adopting a new Housing Element; and WHEREAS, following the required notices in accordance with law, the City Council has held public hearings on said recommen- dations and has carefully considered the evidence at said hear- ings; NOW, THEREFORE, BE IT RESOLVED as follows , to-wit: 1 . The City Council has reviewed and approved the Negative Declaration on the plan, finding that there was no significant impact on the environment. 2. The City Council does hereby delete the existing Housing Element of the General Plan of the City of Redding and adopt the new Housing Element, as shown in Exhibit "A" attached hereto. I HEREBY CERTIFY that the foregoing resolution was intro- duced and read at a regular meeting of the City Council of the City of Redding on the 6th day of August , 1984, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Demsher, Fulton, Gard, Pugh & Kirkpatrick NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None U\, I , 4 A‘za-4 4,1 HOWARD D. KIRKP TRICK, Mayor City of Redding ATTEST: ETHEL A. -NICHOLS, City Clerk FORM APPROVED: /e2-4--c,-&6-71& L,;(i% RANIIALL A. HAYS, CityAt`torney -2- • • r r DRAFT HOUSING ELEMENT REDDING GENERAL PLAN 1980 - 2000 Recommended by the Redding Planning Commission July 10, 1984 July 1984 City of Redding Department of Planning and Community Development , � • • TABLE OF CONTENTS PAGE List of Tables v I. Introduction 1 A. Purpose 1 B. Authority 1 C. Scope 1 D. Related Documents 1 II . Existing Housing Characteristics and Production 2 A. Vacancy Rate 2 B. Housing Conditions 2 C. Housing Needs of Lower Income Families 4 D. Minority Households 4 E. Special Housing Needs 5 F. Employment Trends 7 G. Low- and Moderate-Income Housing Activities 7 1. Housing Assistance 7 2. Rehabilitation Assistance 8 H. Housing Code Enforcement Activity 9 III. Housing Needs 14 A. Land Allocation for Future Housing 14 B. Residential Units and Acreage 14 C. Residential Density 15 D. Area Housing Needs 16 IV. Housing Goals and Objectives 17 A. Goals 17 B. Objectives 17 O TABLE OF CONTENTS (Cont. ) PAGE V. Public Concerns with Housing 20 A. Meeting the Needs of the Citizens 20 B. Adequate Services and Improvements 20 C. Protection of Property Values and a Quality Residential Environment 20 D. Attractive Community 20 E. Avoidance of Future Problems and Hidden Costs 20 VI. City Developer Relationship 21 VII. Market and Governmental Constraints to Housing Development 22 A. Market Constraints 22 1. Market Values 22 2. Financing 23 3. Buyer Preferences 23 4. Ability to Buy 24 B. Government Constraints 25 1. Useable Land 25 2. Land Classified as Residential 25 3. Residential Density 26 4. Subdivision Density 26 5. Subdivision Processing Time 26 6. Development Fees 27 7. Subdivision Improvements 28 8. Application Fees 28 9. Public Housing 28 10. Land Use Controls 28 11. Building Code Requirements 28 12. Mobilehome Regulations 29 VIII . Options to Preserve Existing Housing 31 A. Enforcement of Codes 31 B. Use of Publicly Assisted or Publicly Financed Housing Rehabilitation Programs 31 C. Condominium Conversion 32 D. California Revenue and Tax Code Section 17299 32 E. Self-Help Program 32 ii • • TABLE OF CONTENTS (Cont. ) PAGE IX. Options to Reduce Housing Costs 33 A. Density Bonuses 33 B. Inclusionary Regulation 33 C. Tax Exempt Financing 33 D. Subsidized Housing 33 E. Article 34 - Referendum Authority 34 F. Permit Processing 34 G. Manufactured Housing 35 H. Reduce Standards 35 I. Non-Profit Corporation 35 J. Land Write Down 35 K. Combat Redlining Practices 35 L. Establish Procedures to Mediate Disputes Between Landlord and Tenants 36 M. Energy Conservation 36 1. National Energy Crisis 36 2. Local Energy Consumption 36 3. Conservation Programs and Future Power Products 36 X. Site Development Standards 39 A. General 39 B. Mobilehomes 39 C. Assisted Housing 40 1. Single-Family Housing 40 2. Multiple-Family Housing Projects 40 3. Rehabilitation 40 4. General 41 XI . Fair Share Allocation 42 XII . Least Cost Housing 43 iii • • TABLE OF CONTENTS (Cont. ) PAGE XIII. Public Land Than Could Be Used For Housing 45 A. City Land 45 B. County Land 45 C. State Land 45 D. Federal Land 45 E. School Sites 46 XIV. Actions The City Should Take 47 A. Land Use Element 47 B. Planned Development Ordinance 47 C. Subdivision 47 D. Housing Assistance 48 E. Code Enforcement 50 F. Condominiums 50 G. Mobilehomes 50 H. Multiple Family Area 50 I . Commercial Areas 50 J. Provision of Below Market Rate Housing 50 K. Code Enforcement 51 L. Redlining 51 M. Infrastructure 51 N. Low- and Moderate-Income Housing 51 0. "R-1" Zoning 51 P. Land Assembly 51 Q. Surplus Property 52 R. Hazard and High Noise Area 52 iv • • TABLE OF CONTENTS (Cont. ) PAGE S. Equal Housing Opportunity 52 Sources Consulted 53 Glossary of Housing Terms 54 LIST OF TABLES TABLE PAGE 1 Minority Households 5 2 Rental Assistance 8 3 Rehabilitation Loan Activity, Yearly Loans 8 4 Rehabilitation Loan Activity, Number of Units 9 5 Abatement Activity 9 6 New Dwelling Units Construction 10 7 Population Growth, 1970-1984 11 8 Comparative Population Growth 11 9 Housing Trends 13 10 Residential Acres Needed 15 11 Residential Land Use 15 12 Home Ownership Preference 24 13 "ST" Zoning and Land Use 29 14 Fair Share Allocation 42 15 Least Cost Housing 44 12 Housing Assistance Goals 48 v • I. INTRODUCTION A. Purpose The purpose of the Housing Element of the Redding General Plan is to document and identify housing needs, to establish housing goals, and to develop programs to accomplish the communities housing goals. B. Authority The Housing Element is a part of the Redding General Plan and was prepared pursuant to Section 65302 of the Government Code and the General Plan Guidelines and Housing Element Guidelines prepared by the State Office of Planning and Research and Department of Housing and Community Development, respectively. The Housing Element was formulated to he compatible with the policies and recommendations of the other elements of the General Plan. C. Scope The California Department of Housing and Community Development has devised a set of guidelines to identify the needs of all residents with regard to decent housing. The objective of the housing element is to evaluate housing needs with regard to these guidelines and determine the ability of the current housing situation to meet them. Adequate provisions are included to identify the housing needs of all economic segments of the community. In recognition of this mandate, the scope of the element is to document and identify housing needs within the community and to develop programs which with the assistance of local , state and federal entities an effort will be made to provide decent and affordable housing for every resident in the community. D. Related Documents Included by reference in the Housing Element as background information are the following documents: 1. Existing Conditions and Issues Report of the Redding Planning Area (1980 - 2000) , Redding Department of Planning and Community Development, August 1980. 2. Urban Boundary and General Plan Alternatives , Redding General Plan Update, 1980 - 2000, Redding Department of Planning and Community Development, December, 1981. 3. Shasta County Housing Needs Plan, State Department of Housing and Community Development, March, 1984. Inclusion of these documents does not add, delete, or modify policies, goals, or standards of the Housing Element. The intent is to include background information and statistical data which was used to develop some of the conclusions reached in the Element. 1 • • II . EXISTING HOUSING CHARACTERISTICS AND PRODUCTION In addition to the information included in the section, the reader is referred to the "Existing Conditions and Issues Report of the Redding Planning Area," dated August, 1980, and the "Urban Boundary and General Plan Alternatives of the Redding General Plan Update," dated December, 1981. All basic demographic data including first counts from the 1980 Census are included in these reports. The following additional data concerning housing conditions, characteristics and trends was not included in these two base information reports already circulated as part of the general plan update. A. Vacancy Rate According to a survey of selected rental units conducted by the Sacramento HUD Service Office in February, 1980, the vacancy rate in the City was 1.6 percent out of 17,445 units. Based on the formula supplied by a HUD area economist, there are 242 vacant units in the City. This includes 142 multiple-family rental units, and 100 single-family rental units. The HUD estimates more closely coincide with the City's utility records than do the 1980 census center, which estimated the vacancy rate to be 6.3 percent. Conversely, the State Department of Finance estimated a 7.98 percent vacancy factor in January, 1984. B. Housing Conditions Information on housing conditions in the City of Redding was extra- polated from the 1976 Special Census and updated to January 1, 1980, and the Existing Conditions Report for the City of Redding prepared in 1974. Additional statistics were provided by the Department of Housing and Urban Development, Sacramento Service Office. The methodology for determining housing conditions is provided in detail in the Housing Assistance Plan developed by the City of Redding. The following information provides a summary of that information as it relates to the housing needs of the community. Of the 18,826 total dwelling units in the City in 1980, 12,169, or 65 percent, are considered standard and 6,657, or 35 percent, are sub- standard. Of the 6,657 substandard units, 6,170 are suitable for rehabilitation and 487 are not suitable for rehabilitation. This ratio is expected to be about the same for the additional 950 units in the plan area. The following information describes standard and substandard units in the City in relation to both tenant and owner-occupied housing. 1. Total Owner Occupied Total standard units: 6,226 Total substandard units: 3,518 Total substandard suitable for rehabilitation 3,259 Total substandard not suitable for rehabilitation 259 2 • • 2. Total Renter Occupied Total standard units: 5,943 Total substandard units: 3,139 Total substandard suitable for rehabilitation 2,911 Total substandard not suitable for rehabilitation 228 3. Total Vacant Units There were 242 vacant units in the City as of January 1, 1980. Of these units , 157 are standard, 78 are substandard units which are suitable for rehabilitation, and 7 are substandard units not suitable for rehabilitation. The following indicates the condition of available vacant units. a. Owner Occupied: 1% vacancy rate x 9,744 units = 97 vacant units Total standard units: 63 Total substandard units: 34 Total substandard suitable for rehabilitation: 31 Total substandard not suitable for rehabilitation: 3 b. Renter Occupied: 1.6% vacancy rate x 9,082 units = 145 vacant units Total standard units: 94 Total substandard units: 51 Total substandard suitable for rehabilitation: 47 Total substandard not suitable for rehabilitation: 4 Building condition classifications are defined as follows: Condition Classifications 1. Standard - Those buildings which have been adequately maintained and exhibit no structural , plumbing, or electrical deficiencies. 2. Substandard - Those buildings which exhibit structural , plumbing, and/or electrical deficiencies and/or those units which violate one or more significant aspects of the City of Redding's Housing Rehabilitation Standards. Units are also considered substandard if they do not provide safe and adequate shelter or are in a deteriorating condition caused by use or inadequate maintenance. a. Suitable for Rehabilitation - Those buildings which exhibit one or more of the deficiencies listed under the previous definition of substandard, all of which can be repaired in conformity with current codes and ordinances for a sum not to exceed the value of the building. 3 • • b. Not Suitable for Rehabilitation - Those buildings exhibiting extensive deficiencies or deferred maintenance which cannot be repaired in conformity with current codes and ordinances for a sum not exceeding the value of the building. C. Housing Needs of Lower Income Families Based on figures supplied in the City of Redding's 1980 Housing Assistance Plan, there are 6,024 lower income families in the City of Redding comprising 32 percent of all households. Of these lower income families, 2,386, or 39.6 percent, are homeowners and 3,638, or 60.4 percent, are tenants. The following information indicates the relation of housing condi- tions to lower income families in the City: 1. Substandard Housing Of the 6,170 housing-units rates suitable for rehabilitation, it was determined that 50 percent, or 3,085, are occupied by lower income households. Assuming that substandard conditions apply to lower income owners and renters equally, there are 39.6 percent, or 1 ,222, homeowners and 60.4 percent, or 1,863, renters living in substandard housing. 2. Overpaying Of the 2,810 lower-income renters in 1976, 1,500, or 55 percent, were paying more than 25 percent of their income for housing. Assuming the percentage has not increased in 1980, 55 percent of 3,638 lower-income renters totals 2,001. Of these 2,001 rental households, 231 are being assisted through Section 8 Rent Subsidy programs, leaving 1,770 still needing assistance. 3. Overcrowding An overcrowded household is one containing more than 1.01 persons per room. According to the 1976 Special Census , 451 households were overcrowded, which housed about 3 percent of the total population. There was no breakdown to apply overcrowding to lower-income families, but it is assumed that the majority of households that are overcrowded are in that category. Applying the 1976 figures to the updated 1980 figures, 565 households are overcrowded. D. Minority Households According to the 1976 Special Census, minorities constitute 2.5 per- cent of the population in the City of Redding. Of the total minority head of households, 43 percent are low and moderate income. There is a substantially greater number of low- and moderate-income families within the minority population as compared to the overall population. It does not appear, however, that they face any unique problems with regard to housing needs other than the basic problems faced by their income group. 4 • • From 1976 to 1981, 15 percent of the households assisted were minority. This was due in part to the relocation of 39 minority families during right-of-way acquisition for Buenaventura Boulevard. This project, along with housing rehabilitation and grant programs currently in progress , have addressed the housing problems of a large number of the residents in the only areaof the City with a concen- tration of minorities. Other community improvements, such as street repair, enlarging water mains and storm-drain improvements in this area have also been completed. TABLE I Minority Households Total Owner Renter Low- and moderate-income, minority households, 1980 174 92 82 Housing assistance provided 1976-79 86 47 39 Total minority households needing assistance - January 1, 1980 88 52 43 From experience, it is estimated that almost all low- and moderate- income minority households are in need of housing assistance. This is mainly due to limited opportunities available to minority groups in the past. E. Special Housing Needs 1. Handicapped-Headed Households According to the 1976 Special Census, there were 388 disabled heads of households in the City of Redding. Of these, 244 (63 percent) were 1 and 2 person families; 100 (26 percent) were 3 and 4 person families; and 44 (11 percent) were 5 or more person families. Eight-six percent (334) of these households were below the median income. Forty-one percent (161) were owner-occupied, and 59 percent (227) were renter-occupied. Of the 161 Disabled-Owner Households: 161 x 63.0% of 1 - 2 person families = 101 161 x 26.0% of 3 - 4 person families = 42 161 x 11.0% or 5 or more person families = 18 Of the 227 Disabled-Renter Households: 227 x 63.0% of 1 - 2 person families = 143 227 x 26.0% of 3 - 4 person families = 59 227 x 11.0% or 5 or more person families = 25 5 • • 2. Female-Headed Households The majority of single individuals with dependant children are female-headed households. According to the 1976 Special Census , 42 percent of all low- and moderate-income households were female headed. The percentages of low- and moderate-income female- headed households applied to the total number of households living in substandard housing suitable for rehab are identified below: Substandard Suitable for Rehabilitation Owner Renter 42% of 2,415 - 1,014 426 588 Elderly 21% of 1,014 = 213 89 124 Small Family, 74% of 1,014 =750 315 435 Large Family, 5% of 1,014 =51 21 30 3. Rental Assistance Needs of Female-Headed Households There are 2,749 lower-income households paying more than 30 percent of their income for housing. The following table reflects application of this information to the lower-income female-headed household population. 42% of 2,749 = 1,155 Elderly 21% of 1,155 = 242 Small Family 74% of 1 ,155 = 855 Large Family 5% of 1,155 = 58 4. Elderly Households Nineteen percent of households are headed by a person 65 or over Twenty-one percent of substandard units suitable for rehabili- tation are occupied by the elderly. Three hundred twenty-five elderly householders (18 percent) are below the poverty level . There is a continuing need for affordable housing for the elderly. 5. Large Family Households Sixteen percent of households in Redding consists of five or more persons. Large families have particular needs of open space, dwelling units of three and more bedrooms, and housing with yards . or other play areas. The economics of larger families can make affordability a problem for both owners and renters. Based on the experience of the Redding Housing Authority, there is a very limited supply of four and five-bedroom houses in the City. Many lower-income large families must turn to apartments due to the cost factor. The Housing Authority has found that there is a limited supply of three-bedroom apartments and very few four- bedroom apartments. The shortage of four-bedroom units is a major problem for very large families. 6 • • 6. Special Housing Needs of Particular Groups Redding is at the northern tip of the Sacramento Valley, which is above the major agriculture areas of California. Therefore, there is no need for migrant housing. There are no retirement centers, military housing, or other special types of housing in the City of Redding. F. Employment Trends The City's Existing Conditions Report contains an analysis of economic trends in Shasta County. Considerable employment growth is expected in retail and service-related areas. This trend can be expected to draw more workers to the area, thus, increasing the demand for housing. As many of these jobs are traditionally low- paying, this demand is likely to be predominately for low-cost, smaller units such as apartments. There are two major factors which will serve to hold this demand at a lower level than might otherwise be expected. One is that many retailers , such as Mervyn's and Raley's, indicate a desire to hire part-time employees such as housewives and teenagers. This type of hiring reduces the unemployment rate among these groups but creates few new households. The second factor is that a certain amount of job switching can be expected as local employees leave the interest- rated repressed industries of logging and construction. As the County unemployment rate has consistently been high (15 percent) , it appears likely that many new positions will be filled from this source rather than from substantial population growth. G. Low and Moderate Income Housing Activities The current housing needs in the City of Redding include the need for affordable housing and the need to rehabilitate substandard housing. There are 6,048 housing units within the City which exhibit struc- tural , plumbing and/or electrical deficiencies and/or violate one or more significant aspects of the City of Redding's Housing Rehabili- tation Standards. Approximately 3,024 of these substandard units are occupied by low- and moderate-income persons. One thousand eight hundred sixty-two low- and moderate-income households are paying more than 25 percent of their income for housing and 504 low- and moderate-income households are living in overcrowded conditions. Some households have more than one of the above deficiencies. 1. Housing Assistance A good indication of the needs of low- and moderate-income families has been the growth of the City's housing assistance and housing rehabilitation programs over the last nine years. At the present time, the City has 364 Section 8 subsidies with a waiting list of 700 families. The following table shows growth of the program and number of units now under lease: 7 • • TABLE 2 Rental Assistance Units Under Lease Program 1976 1977 1978 1979 1980 1981 1982 1983 HUD Section 8 Existing 28 50 130 162 179 191 193 200 HCD State Aftercare 2 6 6 4 6 HUD Section 8 Moderate _ 0 10 61 116 170 Rehabilitation TOTAL 28 50 130 164 195 258 313 376 2. Rehabilitation Assistance Also reflective of the needs are the number of rehabilitation loans processed since the inception of the Community Development Block Grant program in Redding. By the end of 1983, an average of 48 loans per year had been approved to improve existing housing in Redding. Tables 3 and 4 illustrate rehab loan activity since 1976. TABLE 3 Rehabilitation Loan Activity (Yearly Loans) Program 1976 1977 1978 1979 1980 1981 1982 1983 CDBG Discretionary Funds - - - 6 12 9 7 - CDBG Entitlement Funds 21 11 12 6 8 15 103 33 California Housing Finance Agency (H.O.H. I . ) - - - - 18 1 - - Section 312 Rehab Loans - 10 1 3 8 - - - State Deferred Payment Loans - - - - 3 3 6 6 Section 8 Moderate Rehab - - - - 5 11 27 33 TOTAL 21 21 13 15 62 39 143 72 Average number of units rehabilitated per year = 41 8 • • TABLE 4 Rehabilitation Loan Activity (Number of Units) Program 1976 1977 1978 1979 1980 1981 1982 1983 CDBG Discretionary Funds - - - 6 12 14 7 - CDBG Entitlement Funds 21 11 12 6 8 31 103 33 California Housing Finance - - - - 18 1 - - Section 312 Rehab Loans - 22 1 9 8 - - - State Deferred Payment Loans - - - - 5 8 6 6 Section 8 Moderate Rehab - - - - 9 46 27 37 TOTAL 21 33 13 21 60 100 143 72 Average number of units rehabilitated per year = 41 These loans are provided to low- and moderate-income persons at low interest rates to correct housing code violations and also allow some general property improvements. The program was expanded in 1981 to make some types of loans available for homeowners in all residential areas of the City. In addition, loans are available tc investor owners who are willing to enter into a fifteen year contract to rent to low- and moderate-income tenants. The City has also used Community Development Funds to write down interest rates using private lenders. To date 21 loans have been processed under this program, committing $179,850 of private lending funds. H. Housing Code Enforcement Activities In addition to enforcing the Uniform Building Code for new construc- tion and remodeling, the City also has an abatement program. From 1976 to 1981, abatement proceedings have been commenced on an average of 13 houses per year. Under these proceedings an average of 7 units per year have been actually abated through demolition. The remainder were upgraded by property owners. TABLE 5 Abatement Activity Abatement Proceeding Commenced 65 units Units Repaired by Owners 30 units Total Abated Units 35 units City Abated Units 11 units Owner Removed Units 24 units 9 • I. Housing Production The production of housing in the City generally varies with the national economy. Table 6 below illustrates activity over the last ten years. TABLE 6 New Dwelling Units Construction Single Family Multiple Family Mobilehome Total 1973 75 135 210 1974 51 198 249 1975 118 128 246 1976 194 617 21 832 1977 433 369 21 823 1978 328 578 42 948 1979 420 145 73 638 1980 302 174 48 524 1981 174 147 18 339 1982 219 72 15 306 1983 554 226 13 793 TOTAL 2,868 2,789 251 5,908 Eleven Year Average 537 Average 1977 - 1983 624 Prior to 1977, the years do not reflect the incorporation of the Enterprise or Cascade areas. Based on these studies, it is estimated that the City will add approximately 624 units per year on the average. Some years will be greater than that, others will be less. From 1977 through 1983, the City added 4,371 new dwelling units and its population increased by 8,891 persons or one dwelling unit for each two additional persons. Since most of the new construction and most of the annexed areas are single-family, it is assumed that the City' s estimated population is low. J. Population Increase Like housing units, population in the City has also increased as a product of new development and annexation. Table 7 depicts the population growth of the City since 1970. 10 • • TABLE 7 City of Redding Population Growth 1970 - 1984 Year Number Increase Percent Change 1970 16,659 - 1971 Not Available - - 1972 Not Available - - 1973 17,300 - - 1974 18,230 930 5.3 1975 18,394 164 0.8 1976 18,903 509 2.7 1977 38,021 19,118 101.1 1978 40,055 2,034 5.3 1979 42,400 2,345 5.9 1980 41 ,995 -405 -1.0 1981 42,392 437 1.0 1982 43,747 1,355 3.2 1983 44,936 1,189 2.7 1984 46,872 1,936 4.3 Note: 1970 and 1980 are U.S. Census estimates . All other years are State Department of Finance estimates for January 1. of each year. The drop in population according to the 1980 Census was challenged by the City based upon the high vacancy rate of 6.3 percent in the City as compared to City utility records showing only 3 percent. This difference, is the City records were correct, would have added another 2,000. The population increase after 1977 is more relevant than preceeding years since it reflects the size of the City today. The average population increase since 1977 has been 1,270 persons per year. The average percent change since 1977 has been +3.06 percent. TABLE 8 City-County Comparative Population Growth Percent Percent Percent Year City Increase Plan Area Increase County Increase 1950 10,256 17,745 36,413 1960 12,773 24.5 28,906 62.8 59,468 38.8 1970 16,659 30.4 37,000 28.0 77,640 30.6 1980 41,995 152.1 51,051 37.9 115,400 48.6 1984 46,872 11.6 124,726 8.1 11 • • From 1970 to 1980, the City increased its popultion by 25,336 persons--a 152 percent increase. The 102-square-mile plan area on the other hand increased its population by 14,051 persons or 37.9 percent. For planning purposes, the plan area's population growth is considered more realistic since much of the City increase was a result of annexation of already developed areas. It is the planning- area population that is crucial to projections of housing needs, public facilities, land-use allocations, and traffic-way require- ments. The population inside the City has little significance because of frequent boundary changes. As a whole, the County had a higher growth rate than the plan area from 1970 to 1980. While the plan area had a ten-year average annual growth rate of 3.25 percent during the decade, the County had an average annual rate of about 4.01 percent. The average annual rate is the compound growth rate. Of the total net growth for the County, the planning area captured about 37 percent of the new growth. This percentage is slightly lower than both the plan area's 1970 and 1980 percentages of the total County population, which were 47 percent and 44.2 percent, respectively. During the last four years of the decade, the growth rates in both the plan area and the County were considerably higher than during the first six years. The County's population increased by an annual growth rate of 4.9 percent from 1976-1980 according to Sedway/Cooke in their "Technical Report No. 4" for the County General Plan revision. The plan area population gain from 1976 to 1980 could not be estimated due to lack of population data on the fringes of the plan area. Since 1980, the City's population has increased by 4,877 persons or 11.6 percent. The County, as a whole, experienced an increase of 9,326 persons or 8.1 percent. The City, at the present, attracts 53 percent of the residential growth and represents 37.5 percent of the County population. J. Housing Trends The following table depicts housing trends in Redding as compiled by the State Department of Finance since 1981. 12 • • TABLE 9 Housing Trends 1981 1982 1983 1984 Single Family 11,239 11,509 11,852 14,799 Two to Four 1,685 1,701 1,762 2,137 Five or more 4,123 4,239 4,239 4,880 Mobilehomes 1,299 1,460 1,560 1,738 Total 18,346 18,909 19,413 23,554 Occupied 16,938 17,534 17,979 21 ,752 Percent Vacant 7.67 7.27 7.39 7.65 Pop/Household 2.462 2.453 2.456 2.452 Population Total 42,392 43,747 44,936 46,872 Households 41,698 43,004 44,164 46,091 Mobilehomes 2,170 2,485 2,618 2,601 Group Quarters 694 743 772 781 Source: State Department of Finance, April 27, 1984. 13 • • III . HOUSING NEEDS Since 1970, the City has maintained fairly complete records of housing conditions in the City. In reviewing these records, several housing problem areas have been identified. They are as follows: 1. An average growth rate of 3.5 percent over the last 10 years created a demand for additional housing. This trend is expected to continue for the next 20 years. 2. Thirty-five percent of the existing housing stock is classified as substandard. 3. Housing costs are increasing faster than median-family income. This has been compounded by high interest rates. 4. Thirty-two percent of the City's population is classified as low to moderate income and has difficulty in obtaining adequate housing. 5. There is a potential loss of rental housing and displacement of tenants due to condominium conversions. 6. There is a lack of affordable rental and owner housing. 7. Erratic rental-unit production has caused both surpluses and shortages at given times. 8. There has been more emphasis on new production rather than on reconstruction. A. Land Allocation for Future Housing The land area contained in Redding' s proposed General Plan is 78,080 acres (122 square miles) . As of April 1, 1980, the incorporated boundary of the City contained 29,460 acres (46.03 square miles) , which amounted to 37.7 percent of the total planning area. Annexations to the City occur frequently and are expected to continue over the coming years. Therefore, this Housing Element addresses the subject within the entire 122-square-mile area as the community of Redding. The General Plan has 12 separate residential densities ranging from a low of 0.1 unit per acre to a high of 24.0 dwelling units per gross residential acre. The dwelling-unit-holding capacity of the available 23,857 acres at the designated densities is 44,739 units. B. Residential Units and Acreage In order to maintain stable land prices within the plan area, it is recommended that the projected amount of land needed for residential 14 • use be doubled. This effectively provides a 100 percent oversupply of land at year 2000 or a 200 percent oversupply in 1984. Using this increase as a guideline, the Land Use Element should provide a minimum of 9,2.86 acres of land classified as residential , based on the single-family multiple-family construction ratio occurring from 1970-1980 as follows: TABLE 10 Residential Acres Needed Acres Units Single-Family 6,566 19,698 42 Multiple-Family 2,720 27,200 58 9,286 46,898 100 C. Residential Density Using the previous discussion, it is recommended that the Land Use Element provide for the following minimum number of units in the density ranges listed below. For this estimate, mobilehomes on individual lots are considered single-family and mobilehomes in mobilehome parks are considered multiple-family. The additional acreage pertains only to land vacant in 1980, not to already developed land, and was derived based on a mix of 42 percent single-family and 58 percent multiple-family. TABLE 11 Residential Land Use by Units Per Acre Type Density Range % Units Large Lot Single-Family 1/units acre or less 6.3 2,954 Middle Lot Single-Family 1. 1 to 2.9 units/acre 16.8 7,880 Small Lot Single-Family 3 to 4.9 units/acre 18.9 8,864 Low Density Multiple-Family 5 to 11.9 units/acre 27.8 13,056 High Density Multiple-Family 12 to 23 units/acre 27.8 13,056 Very High Density 24 or more Multiple-Family units/acre 2.4 1,088 100 46,898* *Note: This is double the projected need for new units by year 2000. No attempt was made in Table 11 to correlate to general plan residential classifications. Rather, the intent was to reflect a range of densities commonly associated with lot sizes to assure 15 • flexibility in choice and to meet general market needs. These numbers should only be considered as minimum. In reality, the land-use plan will likely exceed these numbers particularly in the lower density ranges. It should also be noted that the planned development district and condominium ordinance will permit bonus units greater than the base general plan allows. These bonus units are tantamount to increasing the density over what the general plan allows for conventional development. These bonus provisions also have the potential to substantially increase the total number of units permitted in the plan area depending on the extent of bonus and the number of people who utilize these forms of development. D. Area Housing Needs The Urban Boundary Report estimates the Redding population growth rate at 3.5 percent. This will produce a population of 49,000 by 1985, an increase of 9,095. At the 1980 census rate of 2.5E persons per household for the Redding Plan Area, the household growth is expected to create 3,525 new households by 1985. To accommodate this household growth with an acceptable vacancy rate of 4 percent would require 3,672 new units. In addition, there is a limited need for replacement of existing units. In the 1976 to 1981 period, approxi- mately 50 units were demolished. Carrying this trend forward produces a projected new construction need of 3,722 units by 1985 or approximately 3,700 new units every five years. Based on current percentages , the new households will be distributed as follows: New Household Growth, 1980-1985, By Income Income Group Number of Households Very Low 880 Low 530 Moderate 705 Above Moderate 1,410 Based on past use, of the 3,722 new units, 1 ,988 will be owner occupied and 1,734 units will be rental housing. This rate is expected to repeat itself every five years. According to the Existing Conditions Report and the 1980 Census, employment in Shasta County increased at an annual rate of 2 percent. The available civilian labor force increased at approximately the same rate. The employment rate has paralleled the overall population growth over the last several years. The Employment Development Department anticipates a continuing steady growth in the employment sector that will continue this trend. 16 • • IV. HOUSING GOALS AND POLICIES A. Goals In order to meet its housing needs , the City of Redding has developed five overall housing goals. The purpose of these goals is to guide the action of the City during the next 20 years in regard to the provision of housing in the community. The housing goals are: 1. To provide decent housing in a satisfying environment for all persons, regardless of age, race, sex, marital status, ethnic background, source of income, or other arbitrary factors. 2. To provide an adequate housing selection by location, type, price and tenure. 3. To develop a balanced residential market with access to employ- ment opportunities , community facilities, and adequate services. 4. To promote efficient use of land available for housing. 5. To conserve and maintain the existing housing inventory. B. Objectives In order to accomplish the adopted housing goals, the City has also prepared the following housing objectives: 1. Preserve existing housing and residential neighborhoods where practical . 2. Preserve affordability in places where housing and neighborhoods are being improved or maintained. 3. Provide residential areas which collectively accommodate a range of housing types. 4. Reduce the effects of discrimination in housing and provide safe- guards against future discrimination. 5. Discourage excessive concentration of lower-income groups which contributes to income segregation. 6. Address the special housing needs of large families , minority households , the elderly, the handicapped, and persons displaced as a result of public activities. 7. Reduce the cost of developing new housing through flexible land use and development controls. 8. Minimize tenant displacement and loss of rental housing as a result of condominium and cooperative conversions. 17 • • 9. Develop programs and standards regarding redevelopment, displace- ment and relocation as a result of public work projects. 10. Use Federal and State resources to implement local housing programs and to improve neighborhoods. 11. Minimize deferred maintenance and subsequent deterioration through housing code enforcement programs. 12. Discourage health and safety hazards by removing dilapidated units beyond the possibility of repair. 13. Carry on and encourage positive public works and public improve- ment programs to improve appearance and quality of neighborhoods and to meet the needs of the residents in the general plan area. 14. Encourage cost efficient energy conservation techniques with regard to housing, siting, design and location. 15. Discourage incompatible zoning and land use activities that may affect residential neighborhood vitality. 16. Encourage innovative design techniques for new housing produc- tion. 17. Discourage housing construction in areas where there is risk to both life and property. 18. Reduce long-term community costs by encouraging functional and long lasting housing projects. 19. Encourage infilling and efficient use of land. 20. Locate high-density housing in areas of good vehicle access or in the downtown area. 21. Discourage residential sprawl in order to ease the burden of providing public services and energy. 22. Discourage residential developments in the unincorporated fringe areas of the City that do not meet urban standards equal to or better than those required of development in the City. 23. Locate mobilehome and manufactured housing in areas where such . housing now exists or where it will not be out of character with surrounding housing. 24. Locate higher density housing in areas with medium to level terrain. 25. Coordinate with local transit authority to assure that low- and moderate-income households will have access to public transporta- tion. 18 • • • 26. Encourage pride in home ownership. 27. Develop incentives such as the planned development or cluster subdivision district to encourage innovative housing, the provi- sion of moderate-income housing and conservation of resources. 28. Provide neighborhood and subdivision identity by visual separa- tion with open space and an attractive exterior along major streets. 29. Provide opportunities for neighborhoods to have access to natural resources. 30. Develop aesthetics standards for mobilehome parks and multiple- family development. 31. Evaluate public projects in conjunction with Housing Policies. 32. Equalize the cost of new development by eliminating excessive requirements on individual developments through use of City wide or area of benefit fees. 33. Preplan to reduce delays in permit processing. 34. Encourage new condominium construction rather than conversion in order to maintain an adequate supply of rental housing. 35. Provide an adequate supply of residential classified land to maintain stable land prices and to meet residential housing needs based on projected growth rates. 36. Encourage attractive neighborhoods through landscaping, street trees , regulation of vehicle parking and fencing. 37. Protect single-family investment. 19 o • V. PUBLIC CONCERNS WITH HOUSING The concerns of the City are many and cover a broad area. Generally, they are summarized in the goals and policies section; however, several areas need to be covered in greater detail as follows: A. Meeting the needs of the citizens The City is interested in assuring good and safe sanitary housing for its citizens but not to the extent where it is using local money to subsidize development opportunities. With the revenue constraints imposed upon the City and the needs it must meet with basic services, the City is not in a position to embark on assisted housing programs using general fund money. B. Adequate services and improvements The City of Redding has developed a variety of low cost services to meet the needs of its citizens, which is a direct way to reduce the total cost of living. The City also feels that since it is an urban area, improvements within the City should be for urban uses and that these improvements should be installed when the land is first developed. C. Protection of Property Values and a Quality Residential Environment While being separate concerns, these issues do interrelate to provide a good residential living environment. Residential areas should be preserved and protected from incompatible uses, shoddy development, dangerous and substandard conditions , and loss of property value. D. Attractive Community The City is concerned that its residents have a good living environ- ment through adequate facilities, trees and landscaping, safe places for pedestrians to walk, and insulation from incompatible uses. The City strongly feels that housing should be more than just asphalt and building and that neighborhoods should lastmany years by being con- structed right the first time and by encouraging owners to renovate and maintain. E. Avoidance of Future Problems and Hidden Costs It is the position of the City that the least expensive development is the one that was done right in the first place. Through pre- planning and establishment of minimum standards , it is the position of the City that costly reconstruction to make things right can be avoided to the benefit and reduced cost of all citizens of the community. 20 410/ VI . CITY DEVELOPER RELATIONSHIP Generally, it is the position of th City that private development is responsible for providing housing in the City, paying for the costs of such development, assuring a quality product, developing an attractive community, and meeting the needs of the housing market. The City's function will be to assist in such development using the powers given to it by the State by reviewing development proposals, adopting minimum standards, doing those things on a community wide basis that are difficult for individuals to do, protecting existing development, and avoiding incurring long-term liabilities. The exceptions to this policy would be where the City would obtain State or Federal fundings for use within the community or where required to actively engage in the provi- sion of housing through a redevelopment agency. 21 • • VII . MARKET AND GOVERNMENTAL CONSTRAINTS TO HOUSING DEVELOPMENT A. Market Constraints Major market constraints limiting housing options lie in the areas of income limitations , increasing construction costs, high interest rates, high down payments and high rents. 1. Market Values According to the 1970 Census, property values for a single-family house averaged about $21 ,000. According to the Shasta County Assessor's Office, a house on a lot in the City limits of Redding currently ranges between $60,000 to $75,000. Land costs have risen dramatically, contributing in large part to the cost of housing in the City limits. An average lot in a moderate income neighborhood may cost between $17,000 to $25,000. Tenants have also felt the impact of soaring housing costs as rental costs have risen concurrently to keep pace with increased expenses. Rental costs in 1970, as recorded in the 1970 Census, averaged $96, while in 1976 rental costs averaged $140. Based on the experience of the Housing Authority of the City of Redding, rent for a two bedroom unit averages $275. Mobilehomes comprise a small percentage of the housing stock within the Redding City limits. Since 1976, 329 mobilehomes have been added to Redding's housing inventory. As a result of lower initial costs, mobilehomes are considered to be a viable alter- native to conventional homes for a growing number of families. Indicators show that mobilehomes are beginning to appreciate in value, which makes the investment even more attractive in the eyes of potential homeowners. Mobilehomes vary widely in cost, size, and design. Most mobilehome dealers in the area sell units ranging from 12 feet wide to 34 feet wide and up to 1,746 square feet in area. Costs range from approximately $9,000 to $46,000 depending on size and amenities. Although nonexistent in Redding, very large luxurious mobilehomes can exceed $70,000. The most widespread housing problem in California is the inabil- ity of a large percentage of the population to afford suitable housing, and the City of Redding is no exception. While housing costs have increased by approximately 300 percent since 1970, median family income has increased only 42 percent in the same amount of time. As a result, many families have an increasingly difficult time finding housing within their means. They must turn to progressively lower-priced housing, which generally barely meets minimum code requirements or may even be in a state of disrepair. 22 L • • 2. Financing While home financing is becoming more difficult for everyone, it is particularly difficult for lower income households. Excluding obvious problems in obtaining funds for the down payment and closing costs, the major obstacle in purchasing a home is financ- ing. Generally speaking, the value of an average home for the Redding area runs between $65,000 and $75,000. In order to qualify for a loan at the current interest rate of 14-1/4 percent, a monthly income of approximately $1,900 is required. Even with a 20 per- cent down payment, monthly payments may run over $600 including taxes and insurance. Considering that the median income in the City of Redding is $16,150, it is readily apparent that a majority of families face insurmountable odds in obtaining conventional financing for even moderately priced homes. Mobilehome financing is generally arranged by the dealer. Currently, interest rates are 15.50 percent with a minimum down payment of 15 percent. Although loan terms may vary depending on the size of the loan, an average monthly loan payment runs approximately $250, including taxes and insurance, over a 15 year term. According to Emmett S. Clifford, Vice President of Construction for McKeon Construction, as quoted in "Northern California Review," Winter, 1978, less than 3 percent of the potential first-time homeowners in California will be able to afford a home, assuming the present level of inflation continues. There is obviously a need to seriously consider all measures, which would lead to providing housing options for every City of Redding resident. 3. Buyer Preferences Developers, financiers , and planners have been forecasting for several years that detached home ownership will lose its domi- nance in the housing market. Recent studies have shown, however, that despite sharply escalating housing prices , the vast majority of prospective home buyers prefer a single-family detached house. A national consumer/builder survey in the December, 1980, issue of "Professional Builder," revealed that, for the eighth straight year, over 90 percent of prospect purchasers preferred detached housing. Table 8 illustrates the preference breakdown. The study indicates that the typical home buyer today expects to pay higher prices for housing than in the past. Since home ownership is seen as a good investment and a hedge against inflation, many people are willing to devote increasing amounts of their monthly income toward housing; yet, over 30 percent of prospective purchasers are unable to afford monthly payments in excess of $350. This disparity between home buyers preferences and the ability to pay is further illustrated in the findings that people 23 • desire ranch-style homes on half-acre lots, with amenities such as two-car garages and walk-in closets, yet expect to pay an average of $12,000 less than the price for which a builder would be willing to sell such a house. These differences make it difficult to plan for future residen- tial densities. The mounting pressures of land and energy scarcity, mobility, air pollution, and, most certainly, economics would seem to be harbingers of change in residential land-use patterns. It is evident that lot size preferences, floor area and amenities will have to be sacrificed by more and more buyers in the future. TABLE 12 Home Ownership Preference Detached Single-Family 93.3% Attached Single-Family 4.4 Low-rise Condominium 1.7 High-rise Condominium 0.6 TOTAL 100.0% 4. Ability to Buy It is projected that during the 1980's, housing starts will not keep up with housing needs. The increased demand for housing combined with a dwindling supply and higher costs will eliminate most first-time home buyers from the home market. These factors have resulted in more two-wage earner families, smaller down payments , bigger mortgages , and higher monthly payments. Traditionally, 25 percent of gross income applied to housing and other installment debts has been used by financial institutions to determine a families ability to pay. The question of ability to buy affects both home owners and renters alike. Restricted by high monthly payments and the initial cost of housing, homeowners are no longer able to move up the ladder to a better home with more amenities. This reduces the availability of "starter houses" for first-time home buyers . Escalating rents demand a higher percentage of renters ' incomes thereby reducing disposable incomes that could be used to save for a down payment. Approximately 75 percent of all tenants are currently paying between 30 and 50 percent of their income for housing. Those tenants with lower incomes tend to pay 45 to 50 percent of their income for housing or live in overcrowded conditions. The average 3 bedroom, 2 bath home in the Redding area costs $61,000. 24 • O With a 10 percent down payment, the monthly housing costs including fire insurance and taxes is $864.70. To quality for conventional financing at the current 17 percent interest rate, a family would need a gross income of $41,500 and no other install- ment debts. In the Redding area, only 9 percent of all home- owners and 2 percent of all tenants , or a total of 1,082 families, have the financial capability to qualify for the above loan. As a result of the restrictive costs of home ownership, more families will remain as renters or will search for other methods of buying a home. Less expensive housing such as mobilehomes and condominiums will be provided to meet the increasing demand for affordable housing. B. Governmental Constraints Public or governmental actions can constrain the expansion of housing. One of the functions of the housing element is to focus local attention on those constraints which the local governing body can most easily control . These local governmental constraints are seen in two basic areas: The first is land use and development controls and the second is service and facility infrastructure. The City of Redding does not employ excessively high restrictions or limitations with regard to land use, fees or design that unneces- sarily inhibit housing expansion as compared to other cities. Dense development is usually discouraged in outlying areas because of added costs to provide governmental services for rural area developments. In 1978, the City of Redding adopted ordinances, which imposed fees on new construction, to pay for public improvements necessary to serve new developments. The purpose was to pay for general govern- mental services as a result of growth and to seek to equalize the costs for all developers. Obviously, the fees affect all consumers as the City attempts to meet its responsibilities. The philosophy behind the fees is that new development should pay more of its own way. The following list generally summarizes areas where government may or may not constrain housing. 1. Useable Land Based on the analysis in the "Urban Boundary and General Plan Alternatives Report," there is sufficient useable vacant land in the plan area. 2. Land Classified as Residential Based on the analysis in the "Urban Boundary and General Plan Alternatives Report," there is an adequate amount of land classified as "Residential ." 25 • • • 3. Residential Density The Redding General Plan combines 12 residential density ranges , which are deemed adequate to provide for a variety of residential housing types. At the present, additional land needs to be classified as multiple-family. This need is created by the various economic factors affecting single-family housing. Due to the rising cost of the single-family house, cost of financing, and rising unemployment, more families are forced to live in multifamily rental situations. Builders and buyers will be forced to concentrate on condominiums, duplexes, and apartments. An increased supply of land zoned for this use will help mitigate the conflicts that exist where one land use ends and another begins. There is sufficient land available in the Redding Plan Area to satisfy this need. Of these two categories available for small lot single-family use, the 6.0 unit per acre classification has received little use by developers. The other classifications are 3.5 and 4.0 units per acre, which unless a park site or school site is dedicated, results in a minimum lot size of about 6,000 to 8,000 square feet. A cluster subdivision ordinance or a reclassification of some of the areas now shown as 3.5 units per acre to 4.0 units could be helpful in providing lower cost housing, provided other problems are not created by the increased density. 4. Subdivision Activity The City has approved an average of 1,500 lots per year from 1977 to 1984. Regulation of subdivision activity is not seen as a constraint to housing. 5. Subdivision Processing Time Except where an environmental impact report is required, the City can process a subdivision from filing of application to end of appeal period in from 68 to 75 days, depending on when the application is made with respect to agenda scheduling. Due process requirements include the following State mandated actions: a. Letter to applicant on whether application is complete or incomplete. b. Twenty day notice to school districts. c. Environmental Review, public notice, adequate opportunity to comment on draft negative declaration. d. Advance notice of conditions to applicant. e. Ten day public notice on subdivision public hearing. f. One public hearing. g. Ten day appeal period. 26 1111 R Planned development applications take approximately 45 days longer since they are processed as a rezoning. Condominiums take about the same time as subdivisions. 6. Development Fees In 1978, the City changed its approach from having existing rate payer subsidizing new development to having new development pay a greater share of its costs. The result has been the adoption of various fees in the areas listed below: Type Purpose Capital Improvement - Redevelopment of streets and inter- sections. Sewer Connection - Treatment plant. Water Connection - Treatment plant. In-lieu park - Park site acquisition and development. Park Development - Park development. Storm Drainage - Channel improvements and redevelopment. Electrical Correction - Substation and generation. School Impact Fees - Interim classroom facilities. In addition, special benefit fees are collected based on geographic areas. This recognizes improvements required for areas that do not bear relationships to other areas. Road - Street improvements. Sewer - Lift station, oversizing of lines. Water - Pressure zones, fire flows , lift station, oversizing of truck line, fire storage. While it is true the fees add to the cost of new housing, it is the opinion of the City that these costs are offset by lower utility rates for existing and new costumers and by preserving opportunities for new development to occur. The City has also attempted to equalize the fees by including all those who benefit by the facilities developed and has sought to defray collection as late as reasonably possible. As viewed by the City, the fees are seen as growth accommodating as they enable the City to build new facilities or reconstruct substandard facilities. Without new development occurring, these fees would not be necessary. The school fees are not used by the . City but are collected for overcrowded school districts that qualify under Government Code Section 65970. 27 • • 7. Subdivision and Use Permit Improvements Subdivision and use permit improvements are generally related to the need and involve the installation of curb, gutter, sidewalk, trees, etc. On-site improvement standards have essentially remained unchanged for over ten years. Surveys have shown that in comparison with similar cities, Redding's standards are typical . The City does not require a minimum square-foot size for houses and, generally, has no fencing requirement except between differing uses or along major arterials. Developers have been asked to assume a greater share in off-site costs in recent years due to revenue limitations and increased traffic and drainage problems as mitigation measures to additional growth. Further discussion is included under Section X - Site Development Standards. 8. Application Fees Fees for subdivision or zoning applications are presently less than the cost of processing. A recent Association of Bay Area Governments survey indicates that Redding' s fees are less than average for this size community and should be increased. 9. Public Housing By requiring referendum approval of all low-rent housing projects "developed, constructed or acquired in any manner," by any public body, Article 34 of the State' s constitution poses an obstacle to the delivery of housing suited to the needs of lower-income households. At this time, an Article 34 referendum has not been presented to the voters of the City of Redding. 10. Land Use Controls As stated, the City does not employ excessive limitations with regard to land use. Inevitably, density limitations restrict the amount of development on a given site, thus , possibly increasing the cost of development. The City's zoning ordinance contains four multiple-family residential districts, a single-family residential district, a planned development district, and several combining districts. Table 11 reflects a variety of density ranges. Normally, the biggest obstacle to housing is from property owners when higher needs are proposed near existing lower density subdivisions. 11. Building Code Requirements The City has adopted the Uniform Building Code and the Uniform Housing Code, which have been found essential to ensure safe housing. Strict enforcement of some standards can increase the cost of housing. Excessive standards may increase the cost unnecessarily and should be avoided. The City required two covered parking spaces for a single-family residence and bases 28 • e parking requirements for multiple-family units on the number of bedrooms. 12. Mobilehome Regulations On September 26, 1980, the Governor signed into law Senate Bill 1960, which mandates that mobilehomes be allowed to integrate with conventional homes in single-family residential districts after July 1, 1981. The intent of SB 1960 is to provide the opportunity for more affordable housing by prohibiting local governments from excluding mobilehomes from single-family resi- dential districts. Mobilehome parks are not addressed by SB 1960. The new law only requires that local government provide a zoning district that will allow for the integration of the two housing types. The law does not state how much land should be zoned for this purpose, nor does it require that mobilehomes be permitted in all single-family districts. The law also provides that local governments may integrate mobilehomes with conventional housing by requiring both housing types to meet compatible exterior architectural standards and by requiring mobilehomes to be placed on a permanent foundation. If put on founda- tions, mobilehomes would be taxed as real property. To regulate the appearance of mobilehomes under the law, a city must adopt the same minimum architectural standards for conventional single-family homes. The City meets the basic intent of the law through the "ST" Combining District. The "ST" District, when combined with the "R-1" District, allows both dwelling types without regard to architectural compati- bility or requirement of permanent foundations for mobilehomes. It should be noted that it also has been the policy of the City to permit mobilehomes in "U" Unclassified Districts where mobilehomes already exist without regard to foundations or wheels . A summary in 1982 of area and dwelling units in the "S-T" District is provided in the following table: TABLE 13 "S-T" Zoning and Land Use Potential Existing Existing Residential Zoning District Mobilehomes Homes "ST" Lots R1-ST-B10 (minimum lot size, 10,000 square feet) 32 31 77 R1-ST-B20 (minimum lot size, 20,000 square feet) 41 11 67 RI-ST (minimum lot size, 6,000 square feet) 56 39 32 TOTAL 129 81 176 29 • • The survey shows that of the 386 lots with the "ST" designation, 210 are developed and approximately 62 percent of these are developed with mobilehomes. Aside from the mobilehome subdivision on Santa Rosa Way, mobilehomes and conventional homes are interspersed throughout the existing "ST" Districts. Other areas where mobilehomes are predominant are the Mount Vista Subdivision south of Caterpillar Road and along Branstetter lane in the Cascade area. These latter areas are zoned "U" Unclassified. A field survey was also conducted to determine the degree of archi- tectural compatibility between the two housing types in the Lake Boulevard area. Mobilehomes adjacent to conventional homes are, for the most part, without a permanent foundation system and have varying exterior materials and flat roofs. Covered parking is also treated differently, as many mobilehomes use awnings, which are more suitable to tandem parking. Tandem parking is not recognized by the City parking ordinance as meeting off-street parking. Another area of difference is floor area. Many single-width mobilehomes are no greater than 600 square feet; whereas, most houses are over 1,200 square feet. Common architectural standards for both housing types could improve their compatibility. There are mobilehomes on the market now which incorporate wood siding, shingle roofs and other amenities. These mobilehomes, together with a conventional garage, run from 960 square feet to about 1,440 square feet. If increased standards for mobilehomes are adopted, it would require more expensive units , thus reducing their affordability. It may also encourage the construction of additional conventional homes in "ST" Districts. At this time, approval of mobilehomes in the City of Redding is restricted to areas already designated for mobilehome subdivisions and parks or areas with a history of mobilehome development prior to annexation. In 1982, there were 18 mobilehome parks in the City providing a total of 1,064 spaces. There are an estimated 517 mobilehomes on individual lots. The City does not impose restrictions with regard to exterior design, however, mobilehomes set up in the Redding City limits must meet minimum State requirements. In addition, the site must include covered parking for two cars and the mobilehome must have skirting. Although these factors add to the cost of a mobilehome, the costs are not significant and are intended to achieve equity between the conven- tional single-family home and the factory-built house, improve appearance, and meet the need of the occupant. 30 • VIII. OPTIONS TO PRESERVE EXISTING HOUSING An important part of the City housing stock is in a state of decline and in need of housing rehabilitation. It is estimated there are 6,170 such units in the City, which represents 33 percent of the existing housing stock. If the City's housing problems are to be adequately addressed, measures to preserve existing stock need to go hand-in-hand with action to expand that stock and actions to develop affordable or least-cost housing. Many of the following actions are presently being undertaken, but their continuance into the future needs to be assured, and the pro- grams need to be expended whenever the opportunity to do so arises. The existing stock is also an area of opportunity for both first-time buyers and the low- and moderate-income. A. Enforcement of Codes A major factor in housing deterioration is the lack of code enforce- ment. The City presently enforces codes in existing structures on a complaint basis, which is relatively ineffective. Programs which enforce codes need not be stringent, fearsome, or controversial . Many communities have enacted legislation which ties code enforcement to residential sales transactions in which code inspections are made prior to sale, and buyer or seller are required to correct deficien- cies within a reasonable time. Many communities now license multi- family rental units and perform code inspections as licenses expire, requiring repairs within a reasonable time. These kinds of programs prevent serious housing deterioration often caused by owners seeking tax advantages through short-term depreciation of their investments. A side effect of these kinds of measures is that the correction of serious and costly deficiencies can result in increased housing cost to the occupants. Some cities have gone even further and now require homes to be "retrofitted" before a sale can occur. B. Use of Publicly Assisted or Publicly Financed Rehabilitation Programs The City of Redding currently uses Housing Rehabilitation loan pro- grams financed by Community Development Block Grant funds, the Department of Housing and Community Development 312 loan program, and programs of the California Housing Finance Agency and Bank of America Special Lending Area Agreement program. These programs all have limitations and continued funding is not assured. The City should nurture and expand these programs at every opportunity and continue to aggressively seek out these and alternate funding sources. Currently, the City is not using financing procedures such as authorized by Marks-Foran, which provide funds at 3-4 percent below market interest rates through issuance of tax-exempt revenue bonds. This type of financing program is being debated at the state and national level with the result that this type of bond is not pre- sently marketable. Once the debate, which centers around the use of bonds to the benefit of other than low- and moderate-income families and the cost to the U. S. Treasury Department of the use of such bonds , is settled, the City could vigorously pursue their use. 31 • e C. Condominium Conversions Efforts to preserve the housing stock should not be limited to those actions related to housing conditions. Under anticipated housing market conditions of continued low-vacancy rates and high cost, the preservation of the rental-housing stock is critical . The conversion of rental units to condominiums usually results in homeownership opportunities at prices below those of new housing of any type at a great profit to the converter. Thus, it serves a housing need by producing more affordable owner-occupied housing. Conversely, condominium conversion works to tighten the rental market even further to reduce rental housing stock and to raise rental rates. Conversion of rental units to condominiums, especially those of reasonable prices, should be very carefully evaluated prior to approval and should not exceed a ratio to newly constructed apartments or a fixed percentage of the total community housing stock. Many communities are limiting conversions because of low-rental vacancy rates and others are doing so in such a manner to protect lower cost rental units. The City has adopted condominium conversion regulations which has established a maximum number of units that can he converted in any one year based on a ten year apartment construc- tion average. D. California Revenue and Tax Code Section 17299 This law was enacted by the State Legislature in 1974 and provides that, if an owner of rental property which is in substandard condi- tion fails to correct deficiencies when cited to do so, the locality in which the substandard unit is located can petition the State Board of Equalization for removal of depreciation and certain other expenses from the property owner's tax return. Monies are returned to the locality from the State which can be used to offset the cost of this type of enforcement program. As an essentially self- supporting technique, this is one which should be seriously con- sidered as a means of conserving the quality of rental housing in the City. E. Self-Help Program Self-help programs provide technical expertise and material to home- owners who can do their own work. 32 1 • IX. OPTIONS TO REDUCE HOUSING COSTS The following are actions that can be taken to reduce housing costs: A. Density Bonuses Density bonuses provide increased housing densities to lower overall per unit cost in return for the reservation of a portion of the units for occupancy by low to moderate income households. The planned development or similar zoning district could be a vehicle for such bonus units. Bonus units should be thoroughly evaluated to determine hidden public costs relating to utility capacities and impacts on street and schools. B. "Inclusionary Regulations" Inclusionary housing is achieved by adding to the development approval process a requirement that some units are to be sold at minimum or below market cost. Generally, either zoning or subdivision ordi- nances (or both) would be used as a device to require a stated percentage in a development to be low/ and/or moderate-income hous- ing. The concern here would be if such a program was used would be to prevent a loss to the developer and to provide for long-term use of the unit for low- or moderate-income housing. An advantage of an inclusionary program is that it helps to avoid a direct subsidy from government. C. Tax Exempt Financing Tax exempt revenue bonds provide mortgage money at interest rates significantly below the prevailing market rate. Such bonds may be used to finance rental housing and to provide mortgages to home buyers. These bonds are backed by mortgage revenues they produce and are not obligations of the public or governmental body which issues them. A discussion of the City's efforts with this program can be found under XIV D. The City is currently using similar financing provided by the California Housing Agency in its rehabilitation loan program. D. Subsidized Housing There are certain economic segments of the community whose incomes are so low that their housing needs can be met only by the use of Federal- or State-funded housing subsidy programs. Generally, the subsidies which are required to produce housing for lower-income households come from two basic sources. One is from Federal housing programs, including the Department of Housing and Urban Development Section 8 and conventional Public Housing Program. The other is the use of Federal Community Development Block Grant funds to underwrite the cost of land and site development for projects which will take advantage of HUD subsidized housing programs. These programs make up the difference between the actual cost of the housing unit and the price which low-income households can afford to pay. 33 • e • _4 The use of these grant funds is limited. Their use in reducing the cost of housing has often been essential in establishing the feasi- bility of subsidized housing as, all too frequently, the ceiling on housing prices built into Federal subsidized programs is unrealistic. The actual cost of providing the housing is far higher than estab- lished ceilings. This is particularly true in the HUD Section 8 program for families, and is also frequently true in its program for the elderly and handicapped, and in its Section 8 Substantial Rehabil- itation Program. The City of Redding is currently administering a Section 8 Existing Program and a Section 8 Moderate Rehabilitation Program totaling 231 units. E. Article 34 - Referendum Authority Article 34 of the California Constitution requires a positive vote of the electorate in order that low-rent, publicly owned, developed, or financed housing be constructed. If such referendum authority is absent, a housing authority cannot utilize many of HUD's low-rent housing programs , particularly its conventional Public Housing Program. The referendum requirement originated in the days when low-rent housing was developed as large, dense, unattractive "Projects" equated by many with the war housing projects in the Bay Area built in the era of World War II. Today, few projects of such density occur. Projects for the elderly may be of the high-rise variety, but they do not resemble the kinds of developments which the public years ago came to identify with the term "low-rent public housing." Without Referendum Authority, the City cannot utilize HUD' s Low Rent Housing Program, which provides for publicly owned rental housing or uses tax-exempt financing for more than 49 percent of the units in a privately owned and developed project. Referendum Authority can be structured so as to alleviate most public concern about low-rent housing. For example, a referendum could be structured to: 1. Require family housing which is publicly owned to be developed on scattered sites. 2. Permit more concentrated development of housing for the elderly and handicapped. 3. Permit long-tern public financing of units in private ownership. 4. Establish proportionate distributions between elderly and family housing which is to be publicly owned. 5. Limit the size of any single project. F. Permit Processing The time and cost required for permit processing can be reduced through preplanning. For example, specific plans could be developed for geographic areas that develop the basic development criteria and 34 • 1111 essentially obtain many of the required environmental clearances. For bonafide low- or moderate-income projects, filing fees could be waived. The planned development district could be modified from a rezoning to a subdivision process. G. Manufactured Housing New criteria could be developed to make lower cost manufactured housing more acceptable to the community in order to broaden the areas where such housing is permitted. The problem in the past has been lack of garage parking and the units, themselves, have been aesthetically unsightly. H. Reduce Standards Certain standards could be reduced such as lot area or width. As a practical matter minimum lot widths are not excessive and the planned development district already has provisions for reduced lot size and reduced road requirements. Public street standards could also be reevaluated to determine minimum needs and possibly reduce right of way in exchange for greater front-yard setbacks. A cluster subdivi- sion ordinance would allow a developer to reduce costs without increasing density. I . Non-Profit Corporation The City could work with non-profit corporations or redevelopment agencies to create low- and moderate-income housing. . The advantage is the City could use its Community Development or comparable funds and a non-profit group could move much quicker than the City to tie up land. A non-profit group also has greater freedom to negotiate prices. J. Land Write Down The City could start a program to acquire land and write down its cost to developers of low- and moderate-income housing using Federal or State grants, revenue bonds, or tax increment funding. K. Combat Redlining Practices The accepted definition of redlining is "the conscious decision of lending institutions to identify declining geographical areas and restrict or refuse to make mortgage loans in the area." The practice is insidious and difficult to document and is being attacked on a state and national level . A tool which may assist locally is the Community Reinvestment Act of 1977 administered by the Federal Home Loan Bank. The act requires federally insured savings and loan associations to ascertain and meet community credit needs. The City could work with local lending institutes to identify special commu- nity credit needs and develop programs to meet those needs including redlining problems. 35 • 11/1 L. Establish Procedures to Mediate Disputes Between Landlords and Tenants Disputes arise between tenants and landlords as a result of lack of communication. Many minor problems grow into major confrontations as a result of this lack of communication. The State Assembly recently passed concurrent Resolution No. 61 urging cities and counties to establish mediator programs. Such programs have been successfully developed in some California cities. Such a program sponsored by the City could be manned by supervised volunteers, who would receive calls, disseminate information, and set up meetings between landlords, tenants, and voluntary mediators. M. Energy Conservation 1. National Energy Crisis The need to conserve and efficiently utilize energy supplies, as well as to develop alternative energy sources, has been recog- nized by both government and industry experts. Short- and long-range solutions to energy problems involve changes in energy-consumption patterns and require willingness on the part of Americans not. only to use less energy but to make qualitative changes or adjustments in their lifestyles. Examples include changes in consumer preferences such as the use of smaller and more energy efficient cars, increased use of public transporta- tion and gradual shifts to modified or new types of housing that are more energy efficient. 2. Local Energy Consumption The Electric Department has estimated the City of Redding will require a maximum of 110 megawatts of power in 1981, 160 megawatts in 1990, and by the year 2000, it may need 200 to 208 megawatts of power based on estimated growth. The Electric Department also noted that, by 1983, the City will need to purchase supplemental power. 3. Conservation Programs and Future Power Products In an effort to maintain a competitive edge over other power suppliers , such as the Pacific Gas and Electric Company, the City has embarked on a vigorous campaign to develop future cost- effective energy programs and projects, each of which is discussed below. a. Solar Energy The solar-utility concept has been investigated by the Electric Department, and it has been determined not to be competitive with current electric rates. A solar utility would permit the City to lease solar equipment to its customers. The use of domestic solar-water-heating systems on an individual basis within the City limits has also not proven to be cost effective or competitive with Redding's 36 • • electric rates; however, new State requirements will increase the use of solar units. Perhaps the most cost-effective solar applications for Redding residents is the use of passive solar energy. The City is developing an education program to encourage the use of passive-solar designs for buildings. b. Energy Conservation The City employs a full-time energy auditor and conservation specialist to promote community conservation. Current conservation programs are listed below: 1) Residential energy conservation and insulation program. 2) Communications monitoring system (load management) . 3) Load-management program for top electric users. 4) Street light changeover - mercury vapor to high-pressure sodium. 5) Methane gas conversion at Wastewater Treatment Plant. 6) Grant application for City Hall Weatherization Project. 7) Supervisory control and data-acquisition program. 8) Off-peak, swimming-pool program (operating pumps and filters at times other than peak usage time) . 9) Solar- and windmill-education programs . 10) Power-factor-improvement programs. 11) Co-generation units to operate directly with City system. 12) Commercial- and industrial-audit programs. c. Power Producing Projects Redding has 11 power projects that are pending license approval by the Federal government before construction can begin. All but three of the projects are located outside of Shasta County. If all of the projects are built by the year 2000, the City would have 69.25 additional megawatts of power, which would provide a projected capacity of 185.25 megawatts. According to the Electric Director, these additional projects, even with vigorous conservation efforts, will not satisfy the City's projected electric demand of 200 - 208 megawatts. 37 • • d. Pacific Gas & Electric Pacific Gas & Electric serves a number of Redding households with natural gas and offers low-interest and zero-interest energy conservation loans. These are available for rental property as well as owner-occupied and can be utilized by rental property owners to reduce operating and rehabilitation costs. 38 • X. SITE DEVELOPMENT STANDARDS The type and density of housing should reflect the geographic and social conditions generally as follows: A. General 1. Single-family subdivisions should not have lots with direct access to major arterials. 2. Residential uses should be separated from major arterials by screening, sound barriers, and acoustical insulation. 3. The density of a development should be reflective of the topo- graphy. For example, the greater the slope, the lower the density. 4. Higher densities should be located closer to transportation corridors. 5. Residential units should not be constructed in areas where there is a high probability of hazard to life or property. 6. Dwelling units other than senior-citizens housing should be discouraged in the "C-4" District. 7. Residential uses other than caretaker units should be discouraged in "C-3" and industrial areas. 8. Where higher-density housing adjoins lower-density housing efforts should be made to preserve the privacy of the lower- density housing through screening, berms , fencing, windowless walls , and lowered building height. 9. Large residential subdivisions should have two points of access in case of emergency. 10. Attempts should be made to create viable residential neighbor- hoods with parks, schools or open-space as focal points. 11. Residential areas should incorporate walks for pedestrian safety along streets. 12. Residential areas should have adequate street setbacks and land- scaping to provide an attractive community. B. Mobilehomes Mobilehomes should continue to be permitted in the City in areas where "ST" or "RT" zoning is adopted and where there is a pattern of mobilehomes prior to annexation. 39 • C. Assisted Housing Development of assisted or below market rate housing in the City should follow the guidelines listed below: 1. Single-Family Housing a. Subsidized single-family housing shall be located in areas designated for single-family use by the General Plan and Zoning Ordinance, and construction shall be at densities comparable to or less than those existing in the area. b. Subsidized single-family housing units developed in existing subdivisions shall be dispersed throughout the subdivision and no more than two units shall be adjacent to each other at any one location. c. Subsidized single-family housing units shall not be closer than 1,000 feet to other assisted housing units within a different subdivision. d. The number of assisted single-family housing units in any 1,000-foot radius shall not exceed 25 percent of the number of nonassisted units. e. Sites for assisted single-family housing units shall be selected so that public facilities are available and commu- nity services are within a reasonable distance, or that a transportation system is available from the unit to the services. 2. Multiple-Family Housing Projects a. Newly constructed subsidized multiple-family housing projects shall not exceed a maximum of 70 units in any one develop- ment. b. Subsidized multiple-family housing projects shall not be closer than 1,000 feet to another assisted housing project. c. Subsidized multiple-family housing projects shall be located where public facilities are available and community services are within a reasonable distance, or that a transportation system is available from the project to the services. 3. Rehabilitation Rehabilitation of existing housing units shall occur only in areas designated for residential uses by the General Plan and Zoning Ordinance, excluding residential hotels and senior-citizen facilities in "C-2" or "C-4" areas. 40 • • 4. General All assisted housing projects, regardless of size, shall be reviewed by the City for conformance to local codes and ordinances, the General Plan, and the preceding guidelines. The Planning Commission may consider waiver of guidelines if, in their opinion, a project is worthy of consideration and would not be materially detrimental to the concepts outlined or to the neighborhood. 41 • • XI. FAIR SHARE ALLOCATION In a discussion with the State's Department of Housing and Community Development, it was determined that the City of Redding does not require a Fair Share Allocation Plan on the basis of a study performed by Terra Scan for Shasta County. Terra Scan maintained that there is a similar distribution of lower-income families , similar suitability for lower- income households or other factors , and there is no trend or fact adverse to the continuation of balanced communities in the general housing market area of Shasta County, which includes the City of Redding. On the basis of their study, the City of Redding does not have to prepare a Fair Share Allocation Plan. Based on the residential-land-use objectives set forth on Table 10, the General Plan densities would be distributed as shown on the table below. This compares well with housing needs identified by the State Department of Housing and Community Development in its Shasta County Housing Needs Plan and rezoning the built-in oversupply and some overlap. TABLE 14 Table 10 Housing Needs Goal Plan Very low income 30.2 23.0 Other low income 27.8 17.0 Moderate income 18.9 21.0 Above moderate 23.1 39.0 TOTAL 100.0 100.0 42 • XII. LEAST COST HOUSING In an evaluation of the current housing market, it has been determined that an average three-bedroom home in the Redding city limits runs between $55,000 and $75,000. There is an obvious disparity between the cost of custom or semi-custom, single-family dwelling units and housing units produced to provide the minimum essentials. Least-cost housing demands a standardized construction design, eliminat- ing luxury items and other unnecessary amenities. They are generally constructed in multiple unit projects rather than built individually on scattered sites in order to obtain volume efficiency and reduce land costs. Least-cost homes are often smaller than custom homes, averaging between 900 and 1,200 square feet. Considering that over 55 percent of the low- to moderate-income families are overpaying for housing, least-cost housing construction is a viable method of providing lower cost housing in the City. Methods to encourage developers to create this type of housing include incentive techniques and flexibility with regard to governmental constraints influencing housing and land costs. The following table is a cost breakdown of least-cost housing for a three-bedroom, 1,200-square-foot single-family dwelling. Figures were obtained from one local contractor and include material costs, labor, overhead, and profit margin. They reflect current housing costs as of January, 1982. 43 • • TABLE 15 Least Cost Housing January 1982 Costs of a Least-Cost, 1200-Square-Foot, Three Bedroom, House -- Redding, California Building Permit & Fees $ 2,000 Carried Forward $28,717 Utility Hook-up Fees 1,355 Evaporative Cooler & Ducts 750 Architectural 150 Heating & Sheet Metal 1,270 Excavation 200 Weatherstripping 25 Temporary Utilities 35 Floor Covering 1,335 Concrete 3,750 Driveway & Apron 700 Lumber 4,076 Clean-up 200 Window 975 Contingency 1,000 Electrical 1 ,600 Carpentry 3,900 Subtotal 33,997 Trusses 1,007 Roof Covering 1,207 Construction Financing 3,018 Insulation 500 17 3/4% - 6 months Drywall 1,750 Loan Fees 940 Doors & Closets 592 2 1/4% + $175.00 Cabinets 1,300 Overhead 2,314 Countertops 380 5% of Total Price Painting 1,200 Profit 3,703 Finish Hardware 140 8% of Total Price Plumbing 2,100 Brokerage Fee 2,314 Range, Range Hood 500 5% of Total Price TOTAL PRICE $46,286* Source: Department of Planning and Community Development, Housing Section *The above costs are based on a 3-bedroom, 1-bath house with 2-car carport. House is figured with hardboard siding, composition shingle roof and slab floor. It is assumed that the lot is flat and that all City utilities are available. The cost does not cover lot cost, landscaping, fence, dishwasher, garbage disposal , trash compactor, or any other nonessentials. 44 • • XIII. PUBLIC LAND THAT COULD BE USED FOR HOUSING In determining the land allocation for future housing, an analysis was made of the publicly owned land in the City limits and the Plan area that could be used for housing. The analysis showed that there are a number of parcels administered by Federal , State and local entities that could be used for housing with the largest amount administered by the Bureau of Land Management. Within the City limits, the amount of publicly owned land available and suitable for housing is limited. A. City Land Almost all of the land owned by the City of Redding is used for public facilities or buffering of public facilities, such as air- ports, sewage treatment lands, substations, etc. Other City land generally consists of park or open-space areas where there is a public need for these areas to be retained for the purpose they were acquired or dedicated to the City. The only exceptions to this policy are the land west of the sanitary landfill which when the landfill is filled could be put to other uses and a portion of the Enterprise Sewage Treatment Plant. B. County Land Lands owned by Shasta County in the City are principally in the Courthouse and Shasta General Hospital areas. The County has not prepared master plans for these facilities. The land around Shasta General Hospital could possibly be used for hospital related housing for senior citizens. C. State Lands There are no lands owned by the State within the Plan area that could be used for housing at the present time. If the State were ever to develop a new state building which incorporated the Cal-Trans district office, the present district office building could be an excellent site for senior-citizen housing. D. Federal Lands Two federal agencies administer land within the Redding Plan area-- The Bureau of Land Management and the Western Area Powers Administra- tion. Land controlled by the Western Area Power Administration is near Keswick Dam and is not considered suitable for housing. 45 • • ‘ . • . In the plan area, BLM has several large parcels of which a significant portion is suitable for future housing development. In 1981, the City of Redding formally requested that BLM review land in the Redding Plan area for transfer of ownership to the City for future urban expansion of nine parcels of which portions or all of the parcel could be used for provision of housing. These parcels together could be developed with up to 229 dwelling units. The City advised the Bureau of the possible uses , but the City cannot apply for a patent to use the land without a specific plan for development and knowing when the land can be developed. The Bureau has advised the City that its land could only be used for open space or recrea- tion under a patent, any other use would require the City to purchase the land. E. School Sites If schools are closed as a result of population trends , they are potential sites for development of housing. 46 • • XIV. ACTIONS THE CITY SHOULD TAKE The following is a list of specific actions for the City to accomplish within five years after adoption of the element. A. Land Use Element 1. Designate sufficient residential area in accordance with the minimum standards in Section V (B) . 2. Increase the density of the 3.5 units per acre classification to 4.0 units per acre. B. Planned Development Ordinance 1. Modify the ordinance to provide bonus unit credits for provision of housing for moderate- and low-income families. 2. Modify the ordinance to allow bonus units for projects that incorporate energy conservation measures in excess of code requirements. 3. Modify the ordinance to reduce density bonuses to a maximum of 25 percent so as to not overburden planned utility systems, excluding planned development for which tentative maps have not expired. 4. Modify the ordinance to make a planned development application a subdivision application rather than a rezoning application in order to reduce processing costs and delay. C. Subdivisions 1. Adopt a cluster subdivision ordinance that provides for smaller lots but does not increase the density allowed by the land use element. 2. Require improvements that meet the need of the proposed use that are done right when the project is built, assure long life and avoid costly reconstruction. 3. Encourage variety of design within individual tract developments. 4. Minimize public costs both short-term and long-term. 5. Reinforce neighborhood identity and efficient street patterns. 6. Create useable open-space areas. 47 . • D. Housing Assistance Seek Federal and State funds to be used for local housing rehabilita- tion program or rental assistance. The total estimated number of low- and moderate-income households needing housing assistance is 4,272. This includes 1,395 owner households and 2,877 renter house- holds. The City' s goal is to meet at least 5 percent of the total low- and moderate-income housing need each year. This will provide various types of housing assistance for 1,082 housing units over the next five-year period. It is anticipated that these programs will be provided through various Federal , State and local resources. The following chart depicts by type the rehabilitation assistance planned during the next three-year period if funding is available. TABLE 16 Housing Assistance Goals 1982 1983 1984 1985 1986 Total Homeowners New Construction 0 0 10 10 10 30 Rehabilitation 30 30 40 46 46 192 TOTAL 30 30 50 56 56 222 Renters Potential Homeowners 0 0 10 20 20 50 New Construction 0 0 20 20 20 60 Rehabilitation/ 209 249 289 329 369 369* Rental Assistance* Rental Assistance* 216 227 238 249 260 260 425 576 608 618 669 739 *Rental Assistance categories show cumulative households assisted each year. Housing Rehabilitation and Rental Assistance will continue at exist- ing levels with Rehabilitation/Rental Assistance increasing at a rate of approximately 20 percent per year and Rental Assistance increasing at a rate of approximately 5 percent per year. 48 • • Section 8 - Existing The City currently has 218 units under this program which provides rental assistance. The Housing Authority continues to apply for additional units whenever they are available. Section 8 - Moderate Rehabilitation The City as developed an excellent record of success with this program, which currently consists of 227 units. Additional applications are submitted when units are available. Rehabilitation Funding From the City's Entitlement Block Grant, approximately $100,000 a year is allocated to rehabilitation of low- and moderate-income housing. In addition, the City annually applies to the California . HCD deferred payment loan program. Recent allocations have been $50,000 a year, which the City has spent in a timely manner. Mortgage Bond Program The City is successfully participating in a $9.6 million bond program which is financing single-family housing for low- and moderate-income buyers. The City' s underwriter is currently investigating the feasibility of a mortgage bond program for con- struction of rental housing, a percentage of which must be for low- and moderate-income households. The City intends to pursue this program. Rental Rehabilitation Program The City has currently applied to this new HUD program and anticipates receiving an allocation. Redevelopment Project The Redding Redevelopment Agency has assisted in the formation of the Canby-Hilltop-Cypress Redevelopment Project. Using tax-increment funding this project will raise 11 million dollars for the benefit of low- and moderate-income households over the next 20 years. Housing Assistance funds through° the Redevelopment Agency are expected to become available in 1984. This is reflected in planned increased activity in homeowner housing rehabilitation and develop- ment of new construction during the years 1984 - 1986. Local funds are contingent upon tax increment funding through the Redding Redevelopment Agency in accordance with State law. Bonus Unit Credit Program The City does allow bonus units for Planned Developments and Condominiums provided certain findings are made. 49 • • M M E. Code Enforcement Continue abatement of dilapidated dwellings. F. Condominiums 1. Develop a condominium conversion ordinance for mobilehome parks. 2. Continue to regulate condominium conversions to preserve housing opportunities for low and moderate households and prevent deple- tion of the rental stock. G. Mobilehomes 1. Amend the "ST" zoning district to reflect development standards for mobilehome subdivisions, particularly covered parking. 2. Update the mobilehome park development ordinance. 3. Treat mobilehome parks as multiple-family development. 4. Allow mobilehomes in existing "ST" areas, where mobilehomes existed prior to annexation or where mobilehome will not impact conventional development. H. Multiple-Family Areas 1. Establish landscape standards in "R-3" and "R-4" Districts. 2. Amend ordinances to exclude single-family development. 3. Encourage development on larger parcels through incentive provisions. I. Commercial Areas 1. Establish reasonable density levels for multiple-family develop- ment. Exclude single-family development. 2. Recognize senior-citizens housing as a distinctive use with different off-street parking requirements. 3. Develop standards for mixed-use development. 4. Amend the "C-3" District to delete residential uses other than owner caretaker units. J. Provision of Below Market Rate Housing 1. Seek to channel Federal or State funds into the community to help construct, rehabilitate, finance, or provide rental assistance for low- and moderate-income housing through the Redding Housing Authority. 50 • • 2. Assist the Redding Redevelopment Agency in meeting requirements for development of low- and moderate-income families pursuant to State requirements using tax increment funds. 3. Continue to use Community Development Block Grant funds for housing rehabilitation and sewer assessment grants for low- and moderate-income families. Where possible leverage Block Grant funds with other public and private funding sources. 4. Continue participation in Section 8 rental assistance programs. K. Code Enforcement Seek to prevent blight and unsafe living conditions as necessary of • residences deteriorated beyond repair through abatement. L. Redlining Oppose redlining of areas within the City. M. Infrastructure 1. Avoid capacity problems with City facilities that could result in short-term or long-term restrictions on residential development. 2. Seek to provide for residential development with an adequately designed and funded City services. N. Low- and Moderate-Income Housing If density bonuses are granted to developers based upon the premise of supplying at least ten percent or more of the project to qualify- ing low- and moderate-income families, the City should: (1) approve the qualifications of the new owner; (2) require a deed restriction to control the resale price and to protect the units from infla- tionary pressures; and (3) stipulate that the unit could not be used as a rental . With the deed restriction, the resale price of a unit would be set at the original price plus an amount equal to the cost of living increase for the County, plus an amount equal to any sub- stantial improvements in the unit. The term of the agreement would not be less than for the length of the first mortgage or 20 years, whichever is less. 0. "R-1" Zoning Create a new district and modify ordinance to recognize existing lots that are 50 feet wide and 6,000 square feet in area as legal lots for single-family development and not subject to merger. P. Land Assembly Encourage redevelopment of old unimproved subdivision through assembly and resubdivision. 51 • • Q. Surplus Property Review surplus property to determine potential for housing. R. Hazard and High Noise Areas Discourage residential development in 100-year flood plains, airport approach zones, areas in excess of a 65 CNEL, and on steep slopes. S. Equal Housing Opportunity The City is currently a referral office for the Department of Fair Employment and Housing. The City provides Fair Housing information to owners, tenants, and realtors through brochures and news releases. T. Granny Flats The City has enacted an ordinance to allow second units or "granny flats" in appropriate areas through rezoning. 52 • • SOURCES CONSULTED 1. General Plan Guidelines, State Office of Planning and Research. 2. Housing Element Guidelines, Department of Housing and Community Development. 3. 1976 Special Census. 4. 1970 Census. 5. Patterson and Stewart, AIA, AICP. 6. Shasta County Draft Housing Element, 1979. 7. Shasta County, Assessors Office. 8. City of Redding, Department of Planning and Community Development. 9. City of Redding, Building Department. 10. 1974 Existing Conditions Report. 11. City of Redding Housing Assistance Plan, 1980. 12. State Employment Development Department, Redding, California. 13. Existing Conditions and Issues Report of the Redding Plan Area (1980 - 2000) , City of Redding, August, 1980. 14. Urban Boundary and General Plan Alternative Report, (1980 - 2000) , City of Redding, December, 1981. 15. State Department of Housing and Community Development - Shasta County Housing Needs Plan, March, 1984. 53 • GLOSSARY Affordable Housing That housing which is within the ability to pay of households whose incomes are 12.0 percent or lower than the median. Article 34 Referendum Authority Referendum Authority referred to in Article 34 of the State of California Constitution. A vote of the local electorate authorizing publicly-owned, developed or financed low-rent housing units. BMIR Below Market Interest Rate An interest rate below the rate charged by commercial lending institutions. CHFA Programs Programs of the California Housing Finance Agency financed by issuance of tax exempt State Housing Revenue Bonds . Fair Share Housing An allocation of Federal Housing subsidies to a community within a regional market area based upon an established formula related to subsidized housing needs of the market area. Federally Subsidized Housing That housing, either rental or sales , which has been developed or rehabilitated under a Federal program which reduces the cost by a below-market interest rate mortgage or rental housing wherein rent is subsidized by monthly payments from the Federal Government. Household, Low-Income A household which meets the current eligibility standard for low-rent public housing in Shasta County as such standards shall be modified from time to time. Currently defined as those households whose income is 80 percent or less than the median income. Household, Moderate-Income When used in reference to HUD programs , a household which meets the current eligibility standard for such households established for Shasta County from time to time by the U.S. Department of Housing and Urban Development. Currently established as those households whose incomes are between 80 percent and 120 percent of the median. When used in reference to City or State programs house- holds whose incomes are between 80 percent and 120 percent of the median. 54 • • v..• Household, Very Low-Income A household which meets the current eligibility standard for such households established for Shasta County from time to time by the U. S. Department of Housing and Urban Development. Currently established at 50 percent or less of the median income. Housing, Ability to Pay Owners: Monthly mortgage and insurance payment of 25 percent of gross monthly income or purchase price of 3 times annual gross income. Renters: Monthly payments of 30 percent of gross monthly income. Housing Assistance Plan A plan required by the Federal Department of Housing and Community Development as a prerequisite for participation in Community Development Block Grant Programs. The plan surveys the existing housing stock, assesses housing assis- tance needs of low/moderate income households and establishes a three-year and an annual goal to meet the established needs. Inclusionary Land Use Practices (Zoning) A device whereby the City ensures the provision of low/moderate income housing by requiring the inclusion of a certain percentage of such units in new housing developments as a prerequisite for final approval of a developer's permit or subdivision map. Least Cost Housing , Housing built at the least practicable cost. Economy of construction is achieved without sacrifice of quality through inexpensive design to eliminate luxurious and unnecessary amenities that add to the overall cost. Generally, most effective when produced in volume. Locally Subsidized Housing That housing, either rental or sales, which has been produced at reduced cost as a result of a city density bonsus. Marks-Foran Act State law that authorizes California cities to develop and implement local pro- grams for code enforcement and housing rehabilitation including authority to issue local revenue bonds to finance below-market-rate rehabilitation loans. 55 • Q L Median Income The income amount of which 50 percent of the population earns more and 50 per- cent of the population earns less as determined by the U. S. Department of Housing and Urban Development. State Subsidized Housing That housing, either rental or sales , which has been developed or rehabilitated under a State program which reduces cost by below-market-interest-rate mortgage loans. 56