Loading...
2013 11 06 HC SpecialT4hf 4 HC agendas and staff reports are now available on the City's web page: www.la-guinta. org HOUSING COMMISSION AGENDA CITY HALL STUDY SESSION ROOM 78-495 Calle Tampico, La Quinta SPECIAL MEETING on WEDNESDAY, NOVEMBER 6, 2013 AT 6:00 P.M. CALL TO ORDER 1 . Roll Call 2. Pledge of Allegiance PUBLIC COMMENT At this time members of the public may address the Commission on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1 . Approval of the minutes of October 23, 2012 BUSINESS SESSION 1 . 2014-2021 La Quinta Housing Element Update REPORTS AND INFORMATIONAL ITEMS 1 . Status Update on City Housing Programs COMMISSIONER ITEMS HOUSING COMMISSION AGENDA 1 NOVEMBER 6, 2013 SPECIAL MEETING DIRECTOR ITEMS ADJOURNMENT The next regular meeting of the La Quinta Housing Commission will be held on December 11, 2013, commencing at 6:00 p.m. at the La Quinta Study Session Room, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Monika Radeva, Secretary, of the City of La Quinta, do hereby declare that the foregoing Agenda for the Housing Commission meeting was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 1 1 1, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on November 1, 2013. DATED: October 31, 2013 MONIKA RADEVA, Secretary City of La Quinta, California PUBLIC NOTICES The La Quinta City Study Session Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's office at 777-7123, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the Commission, arrangements should be made in advance by contacting the City Clerk's office at 777-7123. A one (1) week notice is required. If background material is to be presented to the Commission during a Housing Commission meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the Secretary for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the Commission regarding any item(s) on this agenda will be made available for public inspection at the Community Development Department's counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. HOUSING COMMISSION AGENDA 2 NOVEMBER 6, 2013 SPECIAL MEETING LA QUINTA HOUSING COMMISSION MINUTES TUESDAY, OCTOBER 23, 2012 CALL TO ORDER A special meeting of the La Quinta Housing Commission was called to order at 6:06 p.m. by Chairperson Leidner. PRESENT: Board Member McDonough, Vice -Chairperson LaRocca and Chairperson Leidner STAFF PRESENT: Debbie Powell, Economic Development/Housing Manager PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed as submitted. APPROVAL OF MINUTES Motion - A motion was made by Commissioners McDonough/LaRocca to approve the Housing Commission Minutes of June 13, 2012, as submitted. Motion passed unanimously. BUSINESS SESSION 1 . Election of Chairperson and Vice Chairperson MOTION - Commissioner LaRocca nominated Chairperson Leidner as Chairperson, Commissioner McDonough seconded; Chairperson Leidner nominated Commissioner McDonough as Vice Chairperson, Commissioner LaRocca seconded. Both Motions passed unanimously. ADJOURNMENT There being no further business, it was moved by Commissioners LaRocca/McDonough to adjourn this meeting at 6:40 p.m. Motion passed unanimously. Respectfully submitted, LORI LAFOND, Housing Commission Secretary City of La Quinta, California T-df 4 4Qakrw HOUSING COMMISSION MEETING DATE: NOVEMBER 06, 2013 BUSINESS ITEM NO. 1 TITLE: 2014-2021 LA QUINTA HOUSING ELEMENT UPDATE RECOMMENDED ACTION: That the Housing Commission review the Draft 2014-2021 La Quinta Housing Element Update and provide any comments as appropriate, to be forwarded to the City Council. BACKGROUND/OVERVIEW: State law requires all California cities to have a General Plan that includes seven mandated elements. One of the mandated elements is the Housing Element, which identifies that a city is accommodating its fair share of affordable housing need. The Housing Element must be updated every eight years. The City's current Housing Element was last updated and adopted by the City Council in August, 2011 and ultimately certified by the State Housing and Community Development Department (HCD) in November of that year. The current Housing Element covers the planning period of 2008 to 2014; this update is based on a planning period from 2014 to 2021. The 2014-2021 Housing Element Update (Element) was prepared with the assistance of Terra Nova Planning and Research, Inc. (Attachment 1). The Element was sent to HCD in July of this year. HCD provided their comments during a teleconference on August 27, and staff has addressed their comments, resulting in receipt of a conditional letter of compliance (Attachment 2). HCD's comments were minor and have been incorporated into the public review draft that has been provided to the Commission which will be placed on the City website. In conjunction with the public review process for the final draft document, staff is requesting the Housing Commission to provide review comments for City Council consideration. The City Council will be considering the Element as a public hearing item at the November 19, 2013 meeting. Report prepared by: Wallace Nesbit, Principal Planner Report approved for submission by: Les Johnson, Community Development Director Attachments: 1. 2014-2021 Housing Element Update document 2. HCD letter dated September 16, 2013 ATTACHMENT # 1 LA QUINTA HOUSING ELEMENT UPDATE: 2014-2021 PLANNING PERIOD FINAL DRAFT REVIEW DOCUMENT SEPTEMBER 28, 2013 Table of Contents HOUSING.....................................................................................................................................II-1 PURPOSE.................................................................................................................................11-1 INTRODUCTION......................................................................................................................11-4 HOUSING VISION STATEMENT............................................................................................II-44 COMMUNITY PROFILE.........................................................................................................11-45 HOUSING PROFILE...............................................................................................................11-5z HOUSINGNEEDS..................................................................................................................II-67 HOUSING CONSTRAINTS.....................................................................................................11-85 HOUSING RESOURCES........................................................................................................II-114 PRESERVATION OF AT RISK UNITS....................................................................................II-1z3 GOALS, POLICIES, AND PROGRAMS..................................................................................11-1z5 List of Tables Table II-1 Quantified Objectives 2014-2021................................................................................ II-3 TableII-z Population Growth...................................................................................................11-45 Table II-3 Population Growth In Coachella Valley Cities.........................................................II-46 TableII-4 Age Distribution....................................................................................................... II-47 Table II-51980-20oo Ethnic Background of Population........................................................ II-47 Table II-6 Employment by Industry.........................................................................................II-49 Table II-7 Major Employers La Quinta Community Area.........................................................11-49 Table II-8 2011 Household Income Estimates...........................................................................11-51 Table II-9 Income Limits by Household Size, 2012...................................................................11-51 Table 11-10 Households by Income Category, 2010..................................................................11-51 Table II-11 Total Housing Stock z000 to 2010.......................................................................... II-53 Table II-12 Total Dwelling Units by Type of Structure z000 to zolz....................................... II-53 Table 11-13 Historic Record of Housing Development.............................................................11-54 Table 11-14 Total Households, z000 and 2010.......................................................................... II-55 Table II-15 Household Size, z000 and 2010 ..............................................................................11-56 Table II-16 Housing Tenure and Vacancy................................................................................. II-57 Table II-17 Age of Housing Stock in La Quinta.........................................................................11-58 Table II-18 Bedrooms Per Unit, 2000-2011..............................................................................II-63 Table II-19 Bedrooms in Dwelling Unit by Tenure, 2010.........................................................11-64 Table II-zo Sample Resale Prices of Single -Family Homes and Condominiums........................................................................................................ II-65 Table II-21 Representative Apartment Market Rental Rates..................................................11-67 Table II-22 Overpayment by Income Category and Tenure ................................................... II-69 Table II-23 Affordable Housing Costs by Annual Income........................................................11-71 TableII-24 Overcrowding....................................................................................................... II-73 Table II-25 City of La Quinta Householders 65 Years and Over, by Tenure...........................11-74 Table II-26 City of La Quinta Number of Disabilities, by Disability Type' ............................... II-75 Table II-27 City of La Quinta Developmentally Disabled Population......................................11-76 Table II-28 Large Households by Tenure.................................................................................11-79 Table II-29 Coachella Valley Homeless Shelter Resources 2007.............................................11-83 Table II-30 2014-2021 Regional Housing Needs Assessment ................................................ 11-84 Table II-31 Residential General Plan and Zoning Districts.......................................................11-87 Table II-32 2013 Residential Development Standards.............................................................II-92 Table II-33 2013 Permitted Residential Uses by Residential Zoning District ..........................11-93 Table II-34 2013 Permitted Residential Uses by Nonresidential Zoning District ................... II-94 Table 11-35 Parking Requirements for Residential Uses..........................................................11-97 Table 11-36 Local Development Processing Times................................................................. 11-99 Table 11-37 State Development Processing Time Limits........................................................ 11-99 Table II-38 Impact Fees Per Unit of Development................................................................ II-104 Table II-39 Development Fees for Typical Single -Family and Multifamily Homes ............... 11-105 Table II-40 Planning Department Fee Schedule.................................................................... II-1o6 Table II-41 Affordability of Housing 2013................................................................................ II-115 Table 11-42 Constructed, Approved, and Pending Residential Projects................................11-116 Table II-43 Vacant Land Inventory.......................................................................................... II-117 Table II-44 Assisted Multifamily Project Inventory................................................................11-123 LIST OF EXHIBITS Exhibit II -1 Land Inventory Map........................................................................................... II-138 I PURPOSE The Housing Element of the La Quinta General Plan establishes the City's policy relative to the maintenance and development of housing to meet the needs of existing and future residents. Jurisdictions within the Southern California Association of Governments (SCAG) region must complete the statutory housing element update for a planning period that extends from 2014 to 2021. The 2014 Regional Housing Needs Assessment (RHNA) proposes that La Quinta provide the regulatory framework to facilitate the development of new housing units potentially affordable to a range of income levels. The City's RHNA is 364 units for the 2014-2021 planning period. The RHNA includes housing planning goals for very low, low, moderate, and above moderate income households. The City's RHNA by affordability level is 91 units of housing affordable to very low income households, 61 affordable for low income households, 66 affordable for moderate income households, and 146 above moderate income units. The housing element demonstrates the land resources, financial resources, market trends, and governmental efforts that have the potential to facilitate and encourage housing development and rehabilitation to meet the RHNA. Setting The City of La Quinta is one of nine cities in the Coachella Valley. A world-renowned vacation destination, La Quinta's population varies by season. La Quinta's permanent population is estimated at 37,467 persons in 201o. The seasonal population exceeds lo,000, increasing the City's population by 27% during winter months. La Quinta households are generally wealthier than other areas of Riverside County. The median household .F income of La Quinta for 2007-2011 was $67,444, significantly higher than the Riverside County median household income of $65,000. HOUSING 11-1 This income trend is related to the types of new housing available in La Quinta. La Quinta is home to many master planned communities. Although the number of multifamily units in the City more than doubled from z000 to 2010, multifamily units continue to represent less than 8 percent of the total housing stock. The downturn of the housing market has resulted in greater affordability in La Quinta. Much like other communities in the Coachella Valley, since 20o6 the City's housing stock has provided a wide range of pricing options due to an oversupply of housing and foreclosures. Housing Resources California housing element law allows local governments to obtain credit toward its RHNA housing goals in three ways: constructed and approved units, vacant and underutilized land, and the preservation of existing affordable housing. With the economic downturn, moderate income households have access to affordable rental and for sale units. The Very Low and Low income household, however, will continue to require subsidized affordable housing. Housing Plan The housing element sets forth a comprehensive housing plan consisting of goals, policies, and programs to address existing and projected housing needs. The detailed programs provided are designed to identify sites to exceed the RHNA, assist the development of affordable housing, remove governmental constraints to housing, preserve the existing housing stock, provide equal housing opportunities, and promote energy and water conservation in residential uses. Quantified Objectives The goals, policies, and programs will guide housing -related decision making and facilitate attainment of the 2014-2021 RHNA housing targets. As shown in Table II-1, constructed units and approved units make up the bulk of new construction counted toward the RHNA. HOUSING Each jurisdiction must establish quantified objectives by income category to prepare to meet or exceed the RHNA for the 2014-2021 planning period. The City of La Quinta's quantified objectives are based on constructed and approved units and land resources for new housing and programs created to address other existing and projected housing needs. Achieving the City of La Quinta's quantified objectives will rely on third party financing, since the elimination of redevelopment by the State has removed the City's single most important funding source. However, as evidenced by the approved projects planned for construction in 2014, the City and developers of affordable housing projects have secured funding sufficient to exceed the City's very low and low income RHNA allocation. Please see the Housing Resources section. Table II-i Quantified Obiectives 2-014-2-021 Type of Housing Very Low I Low I Moderate Above Moderate Total New Construction New Units 91 1 61 66 146 364 Rehabilitation/Conservation Residential Rehabilitation 10 10 0 0 20 Conservation (Seasons Senior Apartments, at risk 2024) 45 46 91 HOUSING 11-3 INTRODUCTION Purpose The Housing Element of the La Quinta Plan establishes the City's policy relative to the maintenance and development of housing to meet the needs of existing and future residents. These policies will guide City decision making and set forth a housing action program through 2021. These commitments are an expression of the desire of the City of La Quinta to facilitate adequate housing for every La Quinta resident. The City's housing policy is in line with the statewide housing goal of "attainment of decent housing and a suitable living environment for every California Family." The purpose of the Element is to establish official policy which: ❖ Identifies existing and projected housing needs, and inventories resources and constraints that are relevant to meeting these needs. The assessment and inventory include: Community Profile Housing Profile Land Resource Inventory Governmental and Nongovernmental Constraints Analysis Analysis of Special Needs Housing Identification of Assisted Units "At Risk" of Conversion ❖ Identifies the community's goals, objectives, and policies relative to the preservation, improvement, and development of housing. ❖ Sets forth a schedule of actions (programs) the City is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing. The Housing Element has been designed to address key housing issues in the City. These issues include appropriate housing types to meet the needs of all segments of the community while maintaining a low density character, provision of affordable housing for special needs groups in the community, and the maintenance of the existing housing stock. Consistency with State Planning Law California Government Code requires that every City and County prepare a Housing Element as part of its General Plan. In addition, State law contains specific requirements for the preparation and HOUSING content of Housing Elements. Sections 6558o to 65589.8 of the California Government Code contain the legislative mandate for the housing element. State law requires that the City's Housing Element consist of "identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement and development of housing." Since the last planning period, Government Code Section 65583 was amended by Senate Bill 812, requiring the Housing Element to include identification and analysis of special housing needs for individuals with developmental disabilities within the City. State law also requires that the City evaluate its housing element approximately every eight years to determine its effectiveness in achieving City and statewide housing goals and objectives, and to adopt an updated Element that reflects the results of this evaluation. State law is very specific on the content of the Housing Element and makes it clear that the provision of affordable housing is the responsibility of all local governments. The City is expected to contribute toward regional housing needs and to contribute to the attainment of state housing goals. General Plan Consistency The goals, policies, standards and proposals within this element relate directly to and are consistent with all other elements. The City's Housing Element identifies programs and resources required for the preservation, improvement, and development of housing to meet the existing and projected needs of its population. The Housing Element is affected by development policies contained in the Land Use Element, which establishes the locations, types, intensity, and distribution of land uses throughout the City and defines the buildout land use scenario. In designating total acreage density of residential development, the Land Use Element places an upper limit on the number and types of housing units constructed in the City. The acreage designated for a range of commercial and office uses creates employment opportunities for various income groups. The presence and potential for jobs affects the current and future demand for housing at the various income levels in the City. In addition, the General Plan Land Use Element has been updated in accordance with Senate Bill 244. There are no disadvantaged unincorporated communities in the City's Sphere of Influence. HOUSING 11-5 The Circulation Element also affects the implementation of the Housing Element. The Circulation Element establishes policies for providing essential streets and roadways to all housing that is developed. The policies that are contained in the other elements of the General Plan affect the quality of life of the citizens of the City through the control of the amount and variety of open space and recreation areas, acceptable noise levels in residential areas, and programs to provide for the safety of the residents. The Housing Element utilizes the most current data available. It includes 1990, 2000 and 2010 Census data, American Community Survey data, 2013 California Department of Finance (DOF) data, 2009 Comprehensive Housing Affordability Strategy data, field surveys for housing conditions, data generated from the 2013 General Plan Update, and 2012 SCAG Housing needs data, and is consistent with existing and projected population, employment, and housing figures presented by county, state, and national agencies. Scope and Content This Housing Element updates the Housing Element adopted by the City in August of 2011. The Housing Element is organized in the following manner: ❖ Introduction: A statement of the purpose of the Housing Element and statutory requirements, a statement of the relationship between the Housing Element and other General Plan elements, the scope, content and organization of the Element, and a summary of the public participation process. ❖ Evaluation of Past Element: A summary of the achievements and an evaluation of the effectiveness of the past Housing Element. ❖ Housing Vision Statement: A statement describing the future vision of housing in La Quinta as developed by the citizens and elected officials of the City. The policies in the Housing Element are designed to bring this vision to fruition. ❖ Community Profile and Housing Profile: A discussion of the characteristics of the population, households, and housing stock in La Quinta, including growth and affordability trends. ❖ Housing Needs: An analysis of groups in the City that may have special housing needs, the implications of the affordability of HOUSING 11-6 housing stock in relation to household income, and projected housing needs. ❖ Housing Constraints: A discussion of governmental and nongovernmental constraints to the development of housing and opportunities for energy conservation in residential planning, design, construction, and rehabilitation. ❖ Housing Resources: An inventory of constructed and approved units, land available for residential development, and underutilized sites available for residential redevelopment, and an analysis of the ability of these projects and sites to meet the Regional Housing Needs Assessment (RHNA). ❖ Preservation of At Risk Units: A description of any assisted, affordable multifamily units that are eligible to convert to market rate within to years of the planning period. ❖ Goals, Policies, and Programs: A description of housing goals, policies, and programs responsive to the City's current and projected housing needs. Also included is a summary of the City's quantified objectives for new residential construction, rehabilitation, and financial assistance during the planning period. EFFECTIVENESS OF THE 2006-2013 HOUSING ELEMENT To develop appropriate programs to address the housing issues identified in this Housing Element Update, the City of La Quinta has reviewed the effectiveness of the housing programs adopted in the 2oo6-2013 Housing Element. The State of California requires an assessment of the previous housing program to identify areas of accomplishment as well as areas in which improvement could occur following the implementation of new or modified programs. The following section reviews the progress in implementation of the programs, the effectiveness of the Element, and the continued appropriateness of the identified programs. Analysis of the past element is quantified where such information is available. The results of the analysis provided the basis for developing the comprehensive housing strategy for the planning period in progress. HOUSING 11-7 Program Evaluation Adequate Sites for Housing ❖ Policy H-1.1 Identify adequate sites to accommodate a range of product types, densities, and prices to address the housing needs of all household types, lifestyles, and income levels. Program H-i.i.a: General Plan Update. The City's General Plan is proposed to be updated during the planning period, beginning in late zoog. The update process provides an ideal opportunity to investigate potential land and policy resources for new housing construction. ■ Objective: Explore new opportunities for housing affordable to a range of incomes through modified or new land uses and overlay districts. ■ Timing: Anticipated adoption Fall zoll ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City's General Plan was adopted in February of 2013. It includes a Livable Community Element, which details principles such as mixed use development, redevelopment of existing projects to connect residential and commercial projects for pedestrians and bicyclists, and improving energy efficiency through design. This program was successfully completed and will not be extended into the 2014-2021 planning period. Policy H-1.z Focus housing growth within existing City boundaries until it is necessary to pursue annexation or development in planning areas for affordable housing. Program H-1.2.o: Available Land for Housing. While the development capacity of land identified in the vacant and underutilized land inventory has the potential to meet RHNA under current zoning designations, upzoning key sites will increase capacity and may facilitate the development of housing affordable to a range of incomes. HOUSING 11-8 ■ Objective: Increase the capacity for housing on vacant and underutilized sites by rezoning particular sites as discussed in Section 7.0. ■ Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City has completed the rezoning of several sites and applied an Affordable fordable Housing Overlay (AHO) to commercial lands to increase capacity and facilitate to the development of affordable housing (Ordinance Nos. 512, 513 and 514, adopted June 4, 2013). The following table provides a list of rezoned APN's, the previous designation, and current designation. It should be noted that all commercial lands and several residential sites have an AHO designation. This program was successfully completed and will not be extended into the 2014-2021 planning period. City of La Quinta Rezoning of Vacant/Underutilized Sites APN I Previous Zoning I Current Zoning VACANT LAND INVENTORY 766-070-004 LDR/RL MDR/RM 646-07o-ol6 MHDR/RMH MHDR/RMH, AHO 777-030-017 NC/CN NC/CN, AHO 643-200-007 CC/CC CC/CC, AHO 600-390-024 RC&CP/CR&CP RC&CP/CR&CP, AHO 643-080-049 RC/CR RC/CR, AHO 643-020-032 RC/CR RC/CR, AHO 643-020-025 RC/CR RC/CR, AHO 600-340-048 RC/CR RC/CR, AHO UNDERUTILIZED LAND INVENTORY 6o9-o5l-002 LDR/RL MDR/RM, AHO 609-052-002 LDR/RL MDR/RM, AHO 770-040-012 MDR/RM MDR/RM, AHO 777-030-007 VLDR/RL MDR/RM 6o0-030-001 through 6o0-030-010 MDR/RM MHDR/RMH, AHO 777-010-001 NC/CN NC/CN, AHO 773-370-027 VC/VC VC/VC, AHO Source: City of La Quinta Community Development Department Table C-1: Draft Vacant Land Inventory, City of La Quinta Housing Element Table C-z: Draft Underutilized Land Inventory, City of La Quinta Housing Element HOUSING Program H-1.2.b: Small Lot Subdivision Ordinance. Smaller homes on smaller lots create potential for market -driven affordable housing to be developed in La Quinta, and is an appropriate form of housing for first-time homebuyers, small households, and seniors. The ordinance would create additional housing potential on small infill sites. Such an ordinance would include consideration for incentivizing small lot developments such as fee reductions, flexible development standards, allowances for small -lot, market -rate projects to utilize parking and other development -related density bonus incentives usually reserved for affordable projects, and expediting review of small -lot subdivision maps. ■ smaller lots than currently permitted to facilitate the creation of small single-family detached and attached homes. ■ Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City considered the inclusion of a small lot subdivision ordinance as part of the zoning update undertaken for program H-1.2.a. The evaluation considered the historical development pattern in the City, and the tools already available to the development community to facilitate smaller lots. It was determined that existing small lots in the Village and Cove have not developed because of their size, and have on the contrary been consolidated to create larger, more useable lots. Further, the development community has very effectively used Specific Plans to achieve the same results as a small lot ordinance. Therefore, the City did not include such an ordinance in the update completed in 2013. The program will not be extended into the 2014-2021 planning period. ❖ Policy H-1.3 Direct new housing development to viable areas where essential public facilities can be provided and employment opportunities, educational facilities, and commercial support are available. Evaluation: The City continued to look at projects for affordable housing on infill sites and in areas where transit and employment were readily available. The Vista Dunes project, built during the 2oo6-2013 planning period, is located on a major arterial, close to schools, transit and employment, and provides 8o affordable housing units. Both the Washington Street Apartments and Coral Mountain Apartments are planned for such sites. This policy was successful and will be extended into the 2014-2021 planning period. HOUSING ❖ Policy H-1.4 Support the construction of new affordable housing by rezoning, where appropriate and desirable, to permit higher density residential development. Evaluation: See evaluation of Program H-1.2.a. This policy was successfully completed and will not be extended into the 2014-2021 planning period. ❖ Policy H-1.5 Pursue land banking opportunities for housing that exceeds the 20o6- 2014 RHNA. Program H-1.5.a: Land Banking. The recent downturn in the market reduces competition for purchasing vacant and underutilized residential sites. Land costs are a critical concern for the affordable housing development community. By purchasing land as it becomes available, the Redevelopment Agency will be able to provide sites at low or no cost to the developer for the purpose of subsidizing development to meet the RHNA. For example, the Agency sold a 15-acre site to Coachella Valley Housing Coalition for $1 to develop Wolff Waters Place, a project providing 218 affordable units completed in zoog. The City will continue to acquire and consolidate parcels associated with Site U8, in particular related to continuing discussions with the owners of the existing 10.3 acre trailer park. ■ Objective: Utilize Agency funds for the purchase of sites to meet the RHNA. ■ Timing: 2oo6-2014 as determined by land availability and the Redevelopment Agency Implementation Plan. ■ Funding Source: LMIHF ■ Responsible Agency: Redevelopment Agency Evaluation: Prior to the elimination of redevelopment in California, during the 2oo6-2013 planning period, the City's Redevelopment Agency purchased a number of lots in the Village, as well as properties in North La Quinta. In total, the Agency purchased 33 acres of land with a development potential of approximately 400 units. With the elimination of redevelopment, however, the Agency no longer exists, and those properties are unlikely to be developed for affordable housing. This program cannot be continued, and will be eliminated. HOUSING -- -:�r _. . Program H-1.5.b: Affordable Housing Overlay. While affordable housing has been produced at relatively low densities in the City, additional density options could further expand the opportunity for affordable housing projects. Certain areas of the City could accommodate additional residential density without creating inconsistent land use patterns within the existing fabric. Additionally, most large-scale commercial development in La Quinta is one-story and does not approach the maximum allowable height limit. Permitting residential uses over commercial and office uses will increase the City's capacity for housing and encourage vibrant, mixed - use nodes throughout the City without increasing existing building heights. Residential uses from o to 16 units per acre are currently permitted in the VC zone with a Village Use Permit and in the CR and CP zones with a conditional use permit. Higher density residential development would provide new attached housing opportunities for singles, couples, and small families that wish to enjoy La Quinta without the high cost associated with resort -style living. An Affordable Housing Overlay (AHO) would permit higher density development to occur in specific parts of the City provided the residential project dedicate at least 25 percent of the housing for lower income households. Property owners would not be required to develop affordable housing on their sites; however, projects that do so would be permitted to develop housing at densities of 20-24 units per acre. Moreover, the 24 unit per acre density would serve as the base level for the application of a density bonus under State law. Projects with an affordability component under 25% could be granted specific density bonus incentives they may not otherwise qualify for. Under existing provisions, affordable housing projects would be eligible for an additional 35 percent density bonus and could reach a maximum of just over 32 units per acre. Projects developed under the AHO would require a density of at least zo units per acre. The AHO would also set forth financial and other incentives that could be made available, such as land write -downs, fee deferrals or reductions, prioritization of available public funding to AHO sites. In addition, the City will process affordable projects on AHO sites at a priority or `fast track' level, and will consider flexible development standards that exceed the allowances under density bonus provisions, given the appropriate project. The overlay would be applied to properties zoned CC, CN, CP, RC, and VC, as well as certain residentially -zoned sites (see Exhibit II-14). Projects would also need to have a minimum project size of 1 acre, HOUSING 11-12 which would encourage lot consolidation and maximize the housing potential of vacant and underutilized sites. Housing built under the provisions of the overlay would also be subject to the development standards of the City's RH (High Density Residential) zone, which will be modified to be consistent with the AHO and create adequate development standards to facilitate densities established under the AHO (refer to Program 1.7). Projects that meet these standards and requirements would be permitted without a CUP or other additional discretionary review, consistent with GC Section 65583.2 (h) and (i). ■ Objective: Amend the Municipal Code to create an Affordable Housing Overlay that permits affordable housing (stand alone, next to, and/or above nonresidential uses) at densities of 20 to 24 units per acre for sites one acre or larger in size in the Community Commercial, Commercial Park, Neighborhood Commercial, Regional Commercial, and Village Commercial zones. The Overlay shall also apply specifically to residentially -zoned sites U1, U2, U3, U8, and 15 as identified in Tables C-1 and C-2. to accommodate at least 50% of the remaining regional housing need of 1,213 units for lower -income households. The City will apply RH (High Density Residential) zone standards to residential uses in those commercial zones. City staff will propose increasing the maximum height limit from 35 to 40 feet to facilitate three-story mixed -use development. Evaluate reducing or eliminating boo -foot buffer for affordable housing from the Highway 111 corridor. Evaluate financial and performance - based incentives and incorporate into the AHO where appropriate. ■ Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City completed the update of the zoning ordinance to include an Affordable Housing Overlay for designated sites, and to all commercially zoned lands. Because of the elimination of Redevelopment, no financial incentives were included in the AHO. The following g sites ("U" sites are underutilized and ' #" sites are vacant) are specifically called out here to demonstrate that the City's site inventory, along with other commercial lands to be subject to the AHO, will meet compliance requirements of state housing law and provide for significant excess capacity with respect to the City's RHNA. This program was successfully completed, and will not be extended to the 2014-2021 planning period. HOUSING SITE CURRENT ZONING (allowable density) SIZE (Acres) UNIT CAPACITY UI RL (4 units/ac) 4.9 98 U2 RL (4 units/ac) 4.8 96 U3 RL (4 units/ac) 7.5 150 U8 RM (8 units/ac) 19.6 392 15 RMH (12 units/ac) 14 280 5* CP (20 units/ac w/pro ram) 15.7 157 6* CR (20 units/ac w/pro ram) 11 110 A* CR (20 units/ac w/pro ram) 15.8 158 B* CR (20 units/ac w/pro ram) 17.6 176 Program H-1.5.c: Affordable and Mixed -Use Housing Development Standards. Residential uses at 20 to 24 units per acre will be permitted in several commercial zones (Program 1.5) and on specific residential sites following standards similar to those established for the High Density Residential zone. Higher density housing and vertically mixed -use development, including affordable housing projects, may benefit from regulations tailored to this use, especially with regard to parking standards. ■ Objective: Create development standards specific to affordable and mixed -use housing development. Coordinate with nonprofit and for profit developers to assist in identifying appropriate standards for multifamily and affordable housing. • Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance update included an increase in density to 20-24 units per acre on all commercial sites and identified high density residential sites. Development standards were included for these densities as part of the affordable housing overlay. The Mixed Use overlay is being undertaken in the second phase of the zoning ordinance update, and will be complete in the fall of 2013. As mixed use sites are not necessary for the City to meet its RHNA requirements, this portion of the zoning ordinance update is in response to the General Plan requirements, not the Housing Element RHNA needs. This program will be completed in the planning period, and will not be extended. HOUSING Program H-i.5.d: High Density Residential. Encourage future development or redevelopment of High Density Residential sites for multifamily housing by increasing the maximum density from 16 to 24 units per acre. Higher density housing may provide additional opportunities for housing types affordable to moderate and lower income households. This would be a land use action associated with the City's 2011 General Plan Update process. ■ Objective: Amend the Municipal Code to permit densities up to 24 units per acre in the High Density Residential zone. ■ Timing: February 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City's zoning ordinance has been amended to include densities of 20-24 units on high density residential properties. This program was successfully completed and will not be extended into the 2014-2021 planning period. Program H-i.5.e: Adequate Sites Monitoring. To ensure sufficient residential capacity for units affordable to lower - income households, the City will develop and implement an ongoing site monitoring procedure consistent with State Housing Law. The procedure shall provide that where development approvals on identified AHO sites result in a reduction of potential affordable units below the total residential capacity assumed in Tables C-1 and C-z (e.g. Site 15 in Table C-1 is developed below its projected density), the City will identify and analyze additional AHO sites to accommodate the shortfall of capacity remaining within the AHO. As the AHO will apply to all commercially zoned sites within the CC, CN, CP, RC, VC zones, the City may need to incorporate additional commercially zoned sites as part of the housing element inventory if any of the previously identified and analyzed AHO sites develop below their identified capacity. The City will report on the status and implementation of the AHO including development occurring on identified sites to determine whether Program incentives are providing the necessary catalyst to ensure that development is occurring consistent with the buildout projections described in Tables C-1 and C-z. As necessary, the City will revise this program to ensure the AHO remains a realistic and viable development strategy to accommodate the City's remaining regional need for lower -income households throughout the planning period. HOUSING ■ Objective: Develop and implement an Affordable Housing Overlay site monitoring procedure. ■ Timing: July 1, 2011 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The elimination of redevelopment and economic conditions resulted in only limited development in the City after the adoption of the AHO. The affordable housing projects currently under development for the 2014-2021 planning period did not require the use of the AHO. Further, the AHO is only applicable to one site in the land inventory for the 2014- 2021 planning period, and that site is not necessary for the City to meet its RHNA. This program will therefore be eliminated for the 2014-2021 planning period. Assist in the Development of Affordable Housing ❖ Policy H-2.1 Increase housing choices for lower and moderate income households. ❖ Policy H-2.2 Support public, private, and nonprofit efforts in the development of affordable housing. ❖ Policy H-2.3 Pursue a variety of forms of private, local, state, and federal assistance to support development of affordable housing. Program H-2.3.a: Housing Acquisition State law permits jurisdictions "buy down" existing residential projects by restricting previously above moderate income units for lower income households. The City may meet a portion of its RHNA by restricting existing projects or purchasing and deed -restricting foreclosed homes. ■ Objective: Purchase a portion or all of a project and restrict above moderate income units for lower income households ■ Timing: Complete purchase by June 2014 ■ Funding Source: LMIHF ■ Responsible Agency: Redevelopment Agency Evaluation: The City has partnered with a number of organizations to develop affordable housing. The Vista Dunes project was completed with Core Housing and Southern California Housing Development Corp. The Wolff Waters project was completed with the Coachella Valley Housing HOUSING 11-16 Coalition. Coral Mountain Apartments will be completed with Desert Cities Development. The City had an agreement with Habitat for Humanity for 7 homes. To date, the 7 homes have not been built. This program was successful and will be extended into the 2014-2021 planning period. Program H-2.3.b: Second Units and Guest/Employee Housing Encourage the development of second units, guest houses, and employee quarters through a promotional brochure designed to define a second unit, explain local development requirements, and describe the local entitlement process. This information will be provided at City Hall and on the City's website. Press releases and other free forms of media may also be used to inform the public of its availability. Second units and guest/employee quarters (referred to in La Quinta as "casitas") provide housing opportunities for lower income households. Employee quarters, per the City's Municipal Code, are rent-free and therefore affordable to extremely low income households. ■ Objective: Produce and distribute second unit brochure; facilitate the development of zoo second units and guest houses/employee quarters ■ Timing: Produce brochure by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City did not have the financial resources to produce a brochure to promote second units. In addition, second units and guest houses have been a popular feature of single family development both in planned communities and standard subdivisions. Finally, the City does not need second units in the 2014-2021 planning period to meet its RHNA. The need for a brochure to promote such units is unclear. This program will not be extended in the 2014-2021 planning period. Program H-2.3.c: Guest/Employee Housing Facilitate the development of rent-free guest and employee housing by permitting as an accessory use without a Minor Use Permit, and expanding the definition of guest and employee housing units to allow full bathroom and kitchen facilities. Full bathroom and kitchen facilities will improve the quality of life for lower and extremely low income employees in La Quinta. ■ Objective: Amend the Municipal Code to permit guest and employee housing without a Minor Use Permit and allow full plumbing facilities. HOUSING ■ Timing: March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendment completed in 2013 now allows bathrooms and kitchens in guest houses. This program was successfully completed and will not be extended into the 2014-2021 planning period. Program H-2.3.d: Density Bonus The City updated its density bonus law in 20o8, but will need to reflect additional changes brought through AB 2280. Density bonuses allow the development community to construct densities higher than the maximum allowed, and receive other incentives for providing affordable housing. ■ Objective: Update the Zoning Code to include amendments to density bonus law under Assembly Bill 228o and provide a summary of the changes on the affordable housing page of the City's website. ■ Timing: Adopt by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendment completed in June of 2013 updated the density bonus provisions to bring them into conformance with AB 2280. This program was successfully completed and will not be extended into the 2014-2021 planning period. Program H-2.3.e: Collaborative Partnerships The City shall meet with parties interested in affordable housing development to discuss types of land and financial incentives available and requirements for obtaining assistance, discuss appropriate sites for affordable housing, and foster professional collaboration between the City and affordable housing stakeholders. By supporting projects that maximize the leveraging of private, state, and federal financial resources the Agency's funds will assist in the development of more units. ■ Objective: Continue to collaborate with nonprofits and the development community to finance and develop affordable housing. ■ Timing: Project -by -project basis, by request, or on an annual basis in tandem with meetings associated with Program 2.8. HOUSING 11-18 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Redevelopment Agency Evaluation: Prior to the elimination of redevelopment by the State, the Agency worked with a number of organizations (please see evaluation of Program H-2.3.a, above) in generating affordable housing. With the elimination of redevelopment, the Agency no longer exists, and the City has no funds to assist developers in funding projects. However, the City has actively supported Tax Credit applications for the Washington Street and Coral Mountain apartment projects, and will continue to assist affordable housing developers in securing third party financing. This program will be extended into the 2014-2021 planning period. Program H-2.3. f: Affordable Housing Renter -to -Owner Transition Low Income Housing Tax Credit (LIHTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low income households. LIHTC projects can transition from rental to ownership units. The units must remain rentals for 15 years, at which time some projects convert to ownership units. Typically a portion or all of the rent paid for the 5 years prior to the conversion is put toward the purchase of the unit. This enables lower income households to invest in the property in which they have been living and benefit from its appreciation. Providing lower and moderate income households with affordable rental housing allows them to save money for the future home purchase. Giving a renter the opportunity to own their unit creates a sense of community responsibility, establishes a time -sensitive financial savings goal, and provides an opportunity to share in the appreciation of the project. Renter -to -owner affordable housing projects are long term projects that allow a household to remain in La Quinta and aspire to homeownership. Existing stalled condominium and townhome projects are prime opportunities for low income tax credits to be used for renter -to -owner programs. • Objective: Investigate the use of LIHTCs to finance affordable single-family attached rental development that can transition, after 15 years, into moderate income ownership housing. • Timing: Complete study by June 2010 • Funding Source: General Fund • Responsible Agency: Redevelopment Agency HOUSING Evaluation: Please see evaluation of Program H-2.3. f, above. The City has actively supported Tax Credit applications for the Washington Street and Coral Mountain apartment projects, and will continue to assist affordable housing developers in securing third party financing. This program will be extended into the 2014-2021 planning period. Program H-2.3.g: Affordable fordable Housing Renter -to -Owner Transition There are many resources that the City, nonprofits, or for -profit developers may utilize to subsidize the construction and maintenance of affordable housing. Some of the most prominent resources are described below. ■ Objective: Advertise other financial resources through the affordable housing page of the City's website, apply for grants and competitive loans, and form partnerships with the development community to obtain additional financial resources. ■ Timing: Update website with funding information and partnership opportunities every six months or earlier if appropriate. Funding resources are typically offered on an annual basis, most often at the start of the new fiscal year (either January or July). ■ Funding Source: General Fund ■ Responsible Agency: Planning Division Low Income Tax Credits Low Income Housing Tax Credit (LIHTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low income households. A minimum of zo percent of the units must be affordable to low income households and 40 percent of the units must be affordable to moderate income households. Community Reinvestment Act The Community Reinvestment Act provides favorable financing to affordable housing developers. The Redevelopment Agency, development community, and local, regional, and national banks are encouraged to work together to meet their obligations pursuant to the Community Reinvestment Act. California Housing Finance Agency Program The California Housing Finance Agency (CHFA) has three single-family programs for primarily moderate and middle income homebuyers: the Home Ownership Assistance Program and the Affordable Housing HOUSING Im Partnership Program. Each provides permanent mortgage financing for first-time homebuyers at below -market interest rates. HOME Funds HOME (Home Investment Partnership Program) is the largest Federal block grant distributed to state and local governments for the creation of lower income housing. Cities apply when Notices of Funding Availability are issued. Neighborhood Stabilization Program HUD's Neighborhood Stabilization Program makes emergency assistance grants available to local governments for the acquisition, redevelopment, and renting or resale of foreclosed properties at -risk of abandonment. Riverside County First -Time Homebuyers Program Continue participation in the Riverside County First -Time Homebuyers Program for low and moderate income households. Mortgage Credit Certificate The Riverside County Mortgage Credit Certificate Program is designed to assist low and moderate income first time homebuyers. Under the Mortgage Credit Certificate Program, first-time homebuyers receive a tax credit based on a percentage of the interest paid on their mortgage. This tax credit allows the buyer to qualify more easily for home loans, as it increases the effective income of the buyer. Under federal legislation, zo percent of the funds must be set aside for buyers with incomes between 75 and 8o percent of the county median income. Finance Agency Lease -Purchase Program Riverside/San Bernardino County Housing Finance Agency Lease Purchase Program provides down payment assistance and closing costs for eligible households up to 140 percent of the area median income. Housing Choice Voucher (formerly Section 8) Referrals Housing Choice Vouchers allow lower income households to use rental subsidies anywhere in the County, including La Quinta. Evaluation: Please see evaluation of Program H-2.3. f and H-2.3.e, above. The City has actively supported Tax Credit applications for the Washington Street and Coral Mountain apartment projects, and will continue to assist affordable housing developers in securing third party HOUSING I I-21 financing. This program will be extended into the 2014-2021 planning period. Program H-2.3.h: Sweat Equity and Shared Equity Sweat equity and shared equity programs provide lower and moderate income households with ownership assistance. Sweat equity refers to the exchange of time and effort, usually in the form of construction activities, for an affordable ownership opportunity. Shared equity refers to the exchange of a portion of the home appreciation for an affordable ownership opportunity. ■ Objective: Continue to work with organizations that offer sweat and shared equity housing programs to lower and moderate income households in La Quinta. Meet with organizations annually or more frequently (if requested or advantageous) to identify opportunities for coordinated efforts or potential housing projects. ■ Timing: Annual meetings, ongoing coordination ■ Funding Source: LMIHF; approximately $300,000 per year is set aside specifically for the Building Horizons program ■ Responsible Agency: Redevelopment Agency Evaluation: The City has worked with both Habitat for Humanity and the Coachella Valley Housing Coalition in the development of sweat equity homes in the past. The City had an agreement with Habitat for Humanity for 7 homes. To date, the 7 homes have not been built. However, this program has been successful in the past and will be extended into the 2014-2021 planning period. Program 2.3.i: Foreclosed Home Purchase Investigate the feasibility of purchasing foreclosed homes and offering them to residents at prices affordable to low and moderate income households. HUD's Neighborhood Stabilization Program makes emergency assistance grants available to local governments for the acquisition, redevelopment, and renting or resale of foreclosed properties at -risk of abandonment. ■ Timing: Complete study by June 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Redevelopment Agency Evaluation: The City applied for but did not receive NSP funds. However, the City did purchase five foreclosed homes in the Cove, which were rehabbed for rental/sale. Given the upward trending of the housing HOUSING II-22 market, this program will not be extended into the 2014-2021 planning period. Program 2.3.j: Second Trust Deed Loan Program In second trust deed loan programs jurisdictions and agencies assist lower or moderate income households purchase a home by providing a mortgage subsidy. The City will explore utilizing a silent second trust deed program to facilitate homeownership. ■ Timing: Complete study by June 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Redevelopment Agency Evaluation: The Agency manages 419 existing second trust deeds for lower and moderate income homeowners. There were no funds available to add to the program, and with the elimination of redevelopment, no additional funds are expected. This program will not be extended into the 2014-2021 planning period. Program H-2.3.k: Housing Related Parks Program The Department of Housing and Community Development is preparing to establish a grant program to assist in the development of parkland in lower income areas. The City will track the process of the Housing Related Parks Program and seek funding should the City qualify under the finalized program guidelines. ■ Timing: Periodically review HCD website, program availability to be determined by HCD ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Redevelopment Agency Evaluation: The Community Services Department tracks all sources of grant funding for park acquisition and improvements. The focus on this particular program does not seem appropriate, given the number of different sources available for park grant programs. This program will not be extended into the 2014-2021 planning period. HOUSING I I-23 Removal of Governmental Constraints to Housing ❖ Policy H-3.1 Remove unnecessary regulatory constraints to enable the construction or rehabilitation of housing that meets the needs of La Quinta residents, including lower income and special needs residents. Evaluation: The City Planning Department monitors all municipal code amendments to assure that they do not impose a constraint on the development of affordable housing, and will continue to do so. This policy will be extended into the 2014-2021 planning period. ❖ Policy H-3.2 Coordinate the development of affordable housing with the provision of key utilities to ensure prompt and adequate service. Evaluation: All new projects are routed to the City's utility providers for review and comment. Further, infrastructure for utilities is in place throughout the City, and extensions generally consist of laterals and similar minor additions to the system. This policy will be extended into the 2014-2021 planning period. ❖ Policy H-3.3 Incentivize the development of affordable housing to facilitate the development of housing for the City's lower and moderate income households. Program H-3.3.a: Assessment District/Water/Sewer Subsidy Program The City's Assessment District/Water/Sewer Subsidy Program alleviated some of the financial hardship on lower and moderate income households by providing assistance to cover the cost of assessment districts, plumbing installation fees, and sewer connection fees. ■ Objective: Investigate funding resources for reinstating the Assessment District/Water/Sewer Subsidy Program during the planning period. ■ Timing: December 2010 ■ Funding Source: Study funded by General Fund ■ Responsible Agency: Redevelopment Agency Evaluation: Due to a lack of funding resources, the Agency did not assist any lower income households under this program during the 2oo6-2014 planning period. With the elimination of redevelopment by the State, no HOUSING M funds are available for the future funding of the program This program will not be extended into the 2014-2021 planning period. Program H-3.3.b: Priority Water and Sewer Service In compliance with state law, the Coachella Valley Water District (CVWD) must create procedures to provide priority water and sewer service to lower income residential project. The law also prohibits the denial or conditioning the approval of service without adequate findings, and requires future water management plans to identify projected water use for lower income residential development. ■ Objective: Route the adopted Housing Element to the CVWD and notify them of changes and future updates to the Housing Element. ■ Timing: Upon Housing Element adoption ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: CVWD is aware of the requirements of law, and has never, to the City's knowledge, denied a project or prevented connections for an affordable fordable housing project in the City. The City will continue to work with CVWD in the processing of applications in a timely manner. This program will be extended into the 2014-2021 planning period. Program H-3.3.c: Review Permitting Fees and Processing Times Study permitting fees and processing times to identify any potential opportunities to streamline the process and reduce the cost of the entitlement process for projects with an affordable housing component. ■ Objective: Identify means of reducing fees and processing times for projects with an affordable housing component. ■ Timing: Complete study by June 2011 ■ Funding Source: General plan ■ Responsible Agency: Planning Department Evaluation: The City expects to complete an overhaul of its application process and a comprehensive review of Planning fees during the planning period. The Planning Department applications were streamlined and simplified to aid developers in filling out the forms. The fee schedule now reflects the actual costs of processing applications. This program was completed, and will not be extended into the 2014-2021 planning period. HOUSING II-25 Program H 3.3.d: Reduced Parking Standards There are several potential opportunities to reduce parking standards for special types of development in La Quinta. While the City already has special parking standards for multifamily senior housing, there is potential to further reduce those requirements, particularly for lower and moderate income senior housing. The compact, mixed -use character of the Village area may also foster opportunities for parking reductions or joint -use opportunities. Lower and moderate income households may own fewer vehicles than above moderate income households, and be more inclined to walk or use public transportation. Incentives such as reduced parking requirements could be offered for affordable housing developments. ■ Objective: Study the potential impacts of adopting reduced parking requirements or shared parking standards for senior housing and housing in the Village, particularly for projects serving lower and moderate income households. ■ Timing: Coordinate with 2009/2o11 General Plan update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The second phase of zoning ordinance amendments not related to the provision of housing is currently under way. As part of this phase, the City is considering the inclusion of maximum (rather than minimum) parking requirements, particularly for affordable and senior housing. In addition, the City completed a parking study for the Village in 2oo6. This program will be extended into the 2014-2021 planning period. Program H-3.3.e: Encourage Lot Consolidation Several small lots in the Village Commercial would have improved development potential through lot consolidation. The City will study, identify, and adopt regulatory incentives to encourage and facilitate lot consolidation. Potential incentives include fee deferral or reductions, City -assisted parcel assemblage and mergers, parking requirement reduction, and relief from various other development standards that could potentially increase the cost of the project. ■ Objective: Identify opportunities and adopt incentives for lot consolidation in the Village Commercial zone • Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department HOUSING II-26 Evaluation: Due to the difficulties associated with getting multiple property owners to work together on consolidation of parcels, the RDA embarked on a property purchase strategy toward consolidation of City - owned parcels during the planning period for potential future projects. Specific examples are in the Dune Palms/Westward Ho area in the north part of the City, and in the Village area. Many of these parcels have been consolidated by the City, but currently, the acquired sites are tied up due to the elimination of Redevelopment. This program will be extended into the 2014-2021 planning period. Preservation and Rehabilitation of Housing Stock ❖ Policy H-4.1 Protect the quality of La Quinta's neighborhoods through the rehabilitation of both affordable and market -rate homes. Evaluation: There were no rehab programs funded during the Planning period. However, the City did purchase five foreclosed homes in the Cove, which were rehabbed for rental/sale. The City does not envision having funds for such programs in the near future. This program will not be extended into the 2014-2021 planning period. ❖ Policy H-4.2 Promote financial and technical assistance to lower and moderate income households for housing maintenance and improvements. Evaluation: The City did not have available funding for this level of assistance, and relied on Riverside County and other third -party programs to fill this need. Although redevelopment funds have been eliminated, and can no longer be applied to this program, the City will continue to monitor third party programs, including County assistance programs, and direct households to these programs when appropriate. This program will be extended into the 2014-2021 planning period. ❖ Policy H-4.3 Encourage the retention and rehabilitation of existing single-family neighborhoods and mobile home parks that are economically and physically sound. ❖ Policy H-4.4 Enhance neighborhoods that presently provide affordable housing with drainage, lighting and landscape amenities, and parks and recreation areas. HOUSING 11-27 Program H-4.4.a: Residential Rehabilitation Program The Residential Rehabilitation Program provides low interest loans up to $25,000 for property and structural repairs and rehabilitation of single-family homes and small multifamily projects. The Residential Rehabilitation Program encompasses a code compliance component to assist lower income homeowners that have been cited for minor code violations. ■ Objective: Revise the program to meet current needs, as determined in the Redevelopment Agency Implementation Plan, to be updated in zoog. Assist zo lower income households. ■ Timing: 20o6-2014 ■ Funding Source: CDBG and LMIHF ■ Responsible Agency: Redevelopment Agency Evaluation: No housing units were assisted under this program during the Planning period. With the elimination of redevelopment, there are no funds available for this program. This program will not be extended into the 2014-2021 planning period. Program 4.4.b: Housing Condition Monitoring To better understand the City's housing needs the quality and condition of the housing stock must be inventoried on a regular basis. The inventory should focus on older neighborhoods, such as those south of Calle Tampico, west of Washington Street, and north of Highway 111. ■ Objective: Maintain an inventory of housing conditions (updated approximately every five years) to enable the City to properly target Code Compliance and rehabilitation resources. ■ Timing: Complete by January 1, 2014 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Code Compliance Evaluation: The housing in the City was evaluated in 2007. In addition, Code Compliance monitors units in disrepair, and implements corrective action when necessary. The survey will require updating at the beginning of the next planning period. This program will be extended into the 2014- 2021 planning period. HOUSING II-28 Program H-4.4.c: County of Riverside Senior Residential Rehabilitation The Minor Senior Home Repair program allocates grants up to $250 per year for lower income seniors for minor housing repairs, such as painting doors or trim, or repairing a window. The Enhanced Senior Home Repair Program provides major rehabilitation and repair for low income seniors, providing a one-time grant for repairs to homes owned and occupied by seniors and/or persons with disabilities. The maximum level of assistance for this program is $3,000 per year. ■ Objective: Continue to refer code violators and interested parties to the County of Riverside Minor and Enhanced Senior Home Repair programs and other local resources. Assist homeowners in completing applications as necessary. ■ Timing: 20o6-2014, on a case -by -case basis ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Code Compliance Division Program H-4.4.d: County of Riverside Home Repair Grant The County of Riverside Economic Development Agency Home Repair Program provides lower income households with up to $6,000 for home repairs such as a new roof, new air -conditioner, or a handicap ramp. As a jurisdiction in Riverside County, lower income La Quinta households are eligible for this grant. ■ Objective: Refer code violators and interested parties to the County of Riverside for home repair grants. ■ Timing: 20o6-2014, on a case -by -case basis ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Code Compliance Division Evaluation: To the extent that these County programs have been funded, the City has referred homeowners to the appropriate County staff. These programs will be extended into the 2014-2021 planning period. Program H-4.4.e: Rehabilitation Resources List Lower and moderate income homeowners may need assistance in affording important home repairs and improvements. The City can assist these households by compiling and sharing a listing of local, state, and federal programs offering rehabilitation assistance. ■ Objective: Provide a rehabilitation resources list on the affordable housing and code compliance pages of the City's HOUSING website. Use the list, in online or printed form, as a reference for code violators. ■ Timing: Create list by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department, Code Compliance Division, and Redevelopment Agency Evaluation: The City did not implement this program due to lack of resources resulting from staff cuts. However, the program has the potential to be a good resource for homeowners, and should be considered in the future. This program will be extended into the 2014- 2021 planning period. Equal Housing Opportunity ❖ Policy 5.1 Provide the regulatory framework to create an environment in which housing opportunities are equal. Evaluation: The City regularly reviews and amends its Municipal Code to assure that all aspects of it comply with the law. This activity will continue. This policy will be extended into the 2014-2021 planning period. •'• Policy 5.2 Encourage and support the enforcement of laws and regulations prohibiting discrimination in lending practices and in the sale or rental of housing. Evaluation: The City monitors housing complaints and refers all complaints to the Riverside County Fair Housing Council, which has jurisdiction over these matters. This policy will be extended into the 2014- 2021 planning period. ❖ Policy 5.3 Encourage support services for the Coachella Valley's senior and homeless populations through referrals and collaborative efforts with non -profits and other jurisdictions. Evaluation: The City did not implement this program due to lack of staff resources resulting from staff cuts. However, the program has the potential to be a good resource for homeowners, and should be considered in the future. This policy will be extended into the 2014-2021 planning period. HOUSING II-30 ❖ Policy 5.4 Assist in the creation of a continuum of care for the homeless population and those transitioning into permanent housing. Evaluation: While the City has supported the CVAG Homeless Committee efforts, it did not provide funding for Roy's Desert Resource Center, a go bed homeless facility located in Palm Springs. Instead, during the 2oo6- 2014 planning period, the City committed $50,000 toward construction of a new facility for the Coachella Valley Rescue Mission, which provides homeless and other services. The City also committed $50,000 to Martha's Village and Kitchen for a new facility for that organization. This program will be extended into the 2014-2021 planning period. ❖ PORY 5.5 Improve quality of life for disabled persons by facilitating relief from regulatory requirements that may create barriers to accessible housing and promoting universal design. Evaluation: The zoning ordinance amendments completed in June of 2013 included universal design principles and provisions for a reasonable accommodation review process. The City continues to facilitate development of accessible housing for all its residents. This program will be extended into the 2014-2021 planning period. Program H-5.5.0: Zoning Code and Discrimination The City of La Quinta seeks to provide fair regulations to guide development within the community. The City must ensure that amendments to the Zoning Code do not enact regulations causing or contributing to discrimination against any residential development because of race, sex, religion, national origin, marital status, or disability of its owners or intended occupants. ■ Objective: Analyze proposed amendments to the Zoning Code to prevent discriminatory changes. ■ Timing: 20o6-2014 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June Of 2013 did not contain or uncover any discriminatory provisions. This program was completed and will not be extended into the 2014-2021 planning period. HOUSING Program H-5.5.b: Shared Housing a Riverside Experience (SHARE) SHARE is a nonprofit organization whose purpose is to promote home sharing. Home sharing programs provide referral/matching services to people with limited incomes seeking housing, and homeowners who wish to share their home. SHARE targets senior citizens and estimates that 50 percent of these matches involve economically disadvantaged groups, with 25 percent of these matches involving very low income households. ■ Objective: Encourage participation in home sharing, particularly for lower income seniors, by promoting the SHARE program on the affordable housing page of the City's website and at the La Quinta Senior Center. ■ Timing: Update website and distribute information to the Senior Center by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Senior Center Evaluation: SHARE is inactive, and does not appear to be providing services. However, the Senior Center makes every effort to refer its clients to resources available for seniors. This program will not be extended into the 2014-2021 planning period. Program H-5.5.c: Manufactured Housing Assistance Program Manufactured homes on permanent foundations are a cost effective alternative to the traditional single-family detached home. ■ Objective: Continue to maintain the potential for manufactured homes in residential designations as an affordable housing resource (formerly Mobile Home Park Assistance Program). ■ Timing:20o6-2014 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June Of 2013 did not change the current zoning provisions that allow manufactured housing on single family lots. There is no need for this program, and it will not be extended into the 2014-2021 planning period. HOUSING II-32 Program H-5.5.d: Reasonable Accommodation Ordinance Disabled individuals or those acting on their behalf to may need to request reasonable accommodation from land use, zoning, or building rules, practices, and/or procedures of the City in order to obtain adequate housing. ■ Objective: Adopt a process for reasonable accommodation, including a provision of assistance in making the request, as well as for appealing a determination. ■ Timing: Adopt ordinance by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June of 2013 included a reasonable accommodation section in the Residential standards. This program was completed and will not be extended into the 2014-2021 planning period. Program H-5.5.e: Universal Design Universal design refers to barrier -free and accessible design that may incorporate personal assistance technology. Universal design creates spaces that are accessible to persons with disabilities, but also designed for general use. Broad -application of universal design standards would result in new and rehabilitated homes that are appropriate for an entire lifecycle, from infant to elder. By incorporating universal design features the ability of the housing stock to meet existing and future needs would be greatly improved. ■ Objective: Review existing development standards and evaluate the potential for requiring new development and/or rehabilitation to utilize universal design features. ■ Timing: Coordinate with 2009/2011 General Plan Update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June of 2013 incorporated universal design principles in the development standards added to the residential sections of the document. This program was completed and will not be extended into the 2014-2021 planning period. Program H-5.5.. Regional Facilities for the Homeless Continue to support and collaborate with the Coachella Valley Association of Governments Homelessness Committee efforts to create a regional homeless facility that will provide housing as well as HOUSING II-33 supportive services. The Strategic Plan created by the Homelessness Committee establishes a continuum of care for the Coachella Valley. ■ Timing: Council voted to support in 20o8; City staff will continue to collaborate with CVAG throughout the planning period (2oo6-2014) ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: While the City has supported the CVAG Homeless Committee efforts, the City did not participate in funding Roy's Desert Resource Center ("Roy's"), which is in the west end of the Coachella Valley. Instead, the City committed $50,000 in funding towards a new facility for the Coachella Valley Rescue Mission, which currently shelters 150+ men, women and children and is located in Indio. The City also committed $50,000 to Martha's Village and Kitchen, also toward construction of a new facility. The City Council believes these facilities to be a more logical service extension for La Quinta's homeless, due to its proximity to La Quinta. Continuing evaluation and support of these programs will be extended in the 2014-2021 planning period. Program H-5.5.g: Emergency Shelters, Transitional Housing, and Permanent Supportive Housing Recent state legislation (Senate Bill z) has provided direction for local governments to address the housing needs of the homeless. Emergency Shelters, Transitional Housing, and Permanent Supportive Housing are all components of a curriculum of care for the homeless. Although the Riverside County Homeless Census did not identify any homeless population in La Quinta, the City seeks to comply with SB z by contributing to efforts to meet the needs of the homeless throughout the region. Emergency shelters are usually the first step in a homeless continuum of care program designed to allow homeless people a temporary place of stay. Although the Municipal Code lists emergency shelters as a permitted use in all commercial zones, no definition is provided for this use. Furthermore, transitional shelters are defined as temporary or more emergency -basis uses in the Municipal Code and are conditionally permitted in the Regional Commercial (CR) and Major Community Facilities (MC) zones. However, actual transitional housing typically accommodates homeless people for up to two years as they stabilize their lives and does not meet emergency needs. Transitional housing includes training and services that are vital for rehabilitating and enriching the lives of the formerly homeless. Transitional housing HOUSING II-34 facilities provide families and individuals with a safe place within which to rebuild their lives and prepare for independence. Permanent supportive housing is affordable housing with on- or off -site services that help a person maintain a stable, housed, life. This use is not currently addressed in the Zoning Code. ■ Objective: Update the Zoning Code to include legally adequate and appropriate definitions for emergency shelters, transitional housing, and permanent supportive housing. Emergency shelters will be permitted without discretionary approval in the MC zone and conditionally permitted in the CR zone. Transitional and supportive housing types will be permitted as any other residential use in residential zones. Development and operation standards will be developed in compliance with Senate Bill 2 to ensure proper construction or building adaptation for emergency shelter use. ■ Timing: Coordinate with 2009/2011 General Plan Update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June of 2013 included legally adequate definitions of emergency shelters, transitional housing and supportive housing. The amendments also continued emergency shelters as permitted uses in all commercial zones, and added transitional and supportive housing in the residential zones consistent with the regulations for similar uses (such as group homes). This program was completed and will not be extended into the 2014-2021 planning period. Program H-5.5.h: Fair Housing Referrals Fair housing organizations provide dispute resolution and legal assistance to tenants and landlords in conflict. Such services are particularly important for lower and moderate income households unable to afford counsel. ■ Objective: Continue to refer tenants and landlords to the Fair Housing Council of Riverside County. Provide information on fair housing resources on the City's website and at City Hall. Identify and coordinate with local nonprofits, service organizations and community groups that can assist in distributing fair housing information. ■ Timing: Referral service as needed. Information to be placed on website and local groups identified by December 2olo HOUSING II-35 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City refers all fair housing issues to the Fair Housing Council, and will continue to do so. Information regarding the Council is available at city hall, the senior center and other locations in the City. This program will be extended into the 2014-2021 planning period. Program H-5.5.i: Directory of Services While numerous services are available to special needs and lower income households, it can be difficult to readily have access to these resources. A directory provides the contact information necessary to seek housing assistance. ■ Objective: Develop an online directory of services and information to provide La Quinta residents with contact information for community organizations and service providers that address special needs. ■ Timing: Update website by June 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City maintains a partial list of housing resources/services but did not complete this program due to loss of staff assigned to housing programs, associated with the elimination of redevelopment. The directory, however, could be a valuable resource. In addition, the City has recently hired a Housing Coordinator. This program will be extended into the 2014-2021 planning period. Energy and Water Conservation ❖ Policy H-6.1 Promote higher density and compact developments that increase energy efficiency and reduce land consumption. Evaluation: The new General Plan promotes mixed use development, and the zoning ordinance is being amended to include standards for mixed use development. These changes will be completed by the end of 2013. The City also continues to promote energy efficiency through its Greenhouse Gas Reduction Plan, and its Green and Sustainable La Quinta Program. This policy will be extended into the 2014-2021 planning period. HOUSING II-36 ❖ Policy H-6.2 Facilitate housing development and rehabilitation that conserves natural resources and minimizes greenhouse gas emissions. Evaluation: The new General Plan promotes greenhouse gas reduction in the Livable Community Element. The City also continues to promote its Greenhouse Gas Reduction Plan, and its Green and Sustainable La Quinta Program. This policy will be extended into the 2014-2021 planning period. ❖ Policy H-6•3 Encourage and enforce green building regulations or incentives that do not serve as constraints to the development or rehabilitation of housing. Evaluation: The new General Plan promotes green building in the Livable Community Element. The City also continues to promote its Greenhouse Gas Reduction Plan, and its Green and Sustainable La Quinta Program. This policy will be extended into the 2014-2021 planning period. ❖ Policy H-6.4 Focus sustainability efforts on measures and techniques that also assist the occupant in reducing energy costs; therefore reducing housing costs. Evaluation_ The City has identified several residential developments that incorporate sustainable efforts and help reduce the occupant's energy costs. These properties include: Vista Dunes - The Agency's team prepared site and building plans that embraced green and sustainable design principles. The project received LEED Platinum certification. The principles included: • Thermal chimneys to better ventilate the dwellings • Tankless water heaters to reduce energy/water consumption • Dual flush toilets to reduce water consumption • Low flow and oxygenated showerheads and faucets • Photovoltaic solar panels for each dwelling to reduce utility costs • Landscaped trellises to shelter south and west facing walls from the desert sun • Radiant barrier roof sheathing • Drought tolerant indigenous landscaping Coral Mountain Apartments - The Coral Mountain Apartment community will incorporate environmentally sustainable concepts and efficiency HOUSING 11-37 measures. While it is not seeking LEED certification, it is being designed to target LEED Silver standards. Design of the buildings includes many energy and water -efficient amenities, such as solar tubes to provide indoor area lighting for many of the units, low -flow toilets and fixtures, and recirculating water heaters. A hydronic HVAC system will be employed, which circulates hot water from the water heating system, using forced air to heat the individual units. Four of the buildings will incorporate roof -mounted photovoltaic solar panels; additional panels are being placed on top of carport structures. Washington Street Apartments - This project is completing the final phases of the City's review process. It consists of 68 new units and 72 existing units, which will be rehabilitated. The project includes sustainable architectural design such as cement plaster finish, aluminum windows and thermal chimneys. Carport structures will incorporate photovoltaic solar panels This policy will be extended into the 2014-2021 planning period. ❖ Policy H-6.5 Use and encourage emerging technologies to reduce high demands for electricity and natural gas including use of passive solar devices and where feasible other renewable energy technologies (e.g., biomass, wind, and geothermal). Program H-6.5.0: Green and Sustainable La Quinta Program The City Council has identified the conservation of natural resources as a critical concern in La Quinta. In July zoo? the City Council directed staff to initiate the development of the Green and Sustainable La Quinta Program, a comprehensive program to reduce the environmental impact of existing structures, rehabilitation efforts, and new construction. Progress to date includes participating in local energy reduction and water conservation programs. The formal Green and Sustainable Program may include energy conserving standards for street widths, streetscapes, and landscaping to reduce heat loss. Energy consumption in existing homes could be improved by incentivizing energy -efficient retrofits prior to the resale of homes. ■ Objective: Adopt new green goals, policies, and programs that accurately represent the City's direction in resource conservation and minimizing greenhouse gas emissions. Adopt design standards for residential and commercial structures that encourage solar protection to directly result in energy conservation. HOUSING II-38 ■ Timing: July 2012; or concurrent with 2009/2011 General Plan Update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Program H-6.5.b: Energy Conservation Partners In working toward a sustainable La Quinta, the City and its residents will need to collaborate with utilities and service providers. Partnerships with the Coachella Valley Water District, Imperial Irrigation District, Southern California Gas, Burrtec Waste and Recycling Services, Sunline Transit District, Coachella Valley Association of Governments, Southern California Association of Governments and other entities will be an important component of making La Quinta a more sustainable city. ■ Objective: Continue to meet with and seek insight from utilities, service providers, and other entities involved in energy conservation efforts appropriate for La Quinta. ■ Timing: 20o6-2014 ■ Funding Source: General Fund ■ Responsible Agency: City Manager's Office/ Planning Department Evaluation: The City is working with local conservation partners to implement the adopted Green and Sustainable La Quinta Program, including Burrtec Waste & Recycling, Coachella Valley Water District, Imperial Irrigation District, and Southern California Gas Company. The City maintains an inventory of sustainable goals and accomplishments on the Going Green website. The following table identifies current and planned goals of the Green and Sustainable La Quinta Program. HOUSING II-39 The City of La Quinta Sustainability Goals and Accomplishments In - ProOcress/ Goals and Accomplishments Goal Completed Going Identify Greenhouse Gas Emissions inventory baselines and specific targets for improvements, on a X regional and local level Expand sustainability outreach/education including X website "Going Green" section Initiate Smart Growth/LEED Training for selected staff X members Develop policy and plan for l00% conversion to X clean/green fleet Initiate a Pilot AB 811 Loan Program X Facilitate energy audits for top uses and support X energy efficiency actions Implement a Curbside Household Hazardous Waste X Program Expand the number of Household Hazardous Waste X Events at City Hall/Corporate Yard Develop an Environmentally Preferable Purchases and X Practices Policy Expand outreach and education for waste reduction and recycling, water and natural gas conservation, X and energy efficiency Implement energy efficiency improvements of City facilities as recommended by Imperial Irrigation X District Identify water usage benchmarks and develop water X conservation goals Jointly (City and IID) offer an energy product (Energy X Meter) to city residents at a reduced cost Investigate program implementation of: food waste X recycling and non -controlled medication disposal Expand promotion of commercial recycling program X Conduct Green Workshops and coordinate energy X audits with Homeowners associations Seek opportunities for energy and environmental X grants, including a bike path grant Install LED flash warning devices: Adams St., X Eisenhower Dr., and Avenida Bermudes Replace video detection system at three intersections X Establish a Compressed Natural Gas Fueling station X (Fire Station) Host shred day events X Participate in Desert Cities Energy Partnership to X achieve funding for energy programs and events This program is successful and will be extended into the 2014-2021 planning period. HOUSING M Program H-6.5.c: Cooperative Water Management Program for Cove Homes The Redevelopment Agency upgrades the plumbing, heating, air conditioning, and other equipment in their Cove Homes during the rehabilitation process prior to sale. In 2oo8 the City Council approved collaborative efforts between the Agency and Coachella Valley Water District. The Agency is participating in the Coachella Valley Cooperative Water Management Program to improve water efficiency in Cove Homes. ■ Objective: Implement the Cooperative Water Management Program for the Agency's Cove Homes and evaluate the feasibility of implementing changes to existing landscape and irrigation when Cove Homes are sold. ■ Timing: 20o6-2014 ■ Funding Source: LMIHF and/or CVWD program funds ■ Responsible Agency: Redevelopment Agency Evaluation: The Cooperative Landscape Water Management Program was composed of three parts; Residential Turf Conversions (individual), HOA/Commercial Turf Conversions, and commercial properties. The City's first landscape conversion took place on August 26, 2oo8. As of March 2010, 71 La Quinta residents (including z RDA owned homes) had completed the program, which went unfunded after 2011. With the elimination of redevelopment, it is unlikely that the City will be able to fund this program, and it will not be extended into the 2014-2021 planning period. Program H-6.5.d: Landscape Water Management Program In 2oo8 the City formed a partnership with the Coachella Valley Water District to start a citywide Landscape Water Management Program. The program provides affordable landscape design and consulting services to assist homeowners in making landscaping improvements to reduce sprinkler runoff and reduce the amount of water used for landscaping. In accordance with the program the City amended the Municipal Code to provide more restricted water efficient landscaping standards. The City adopted a landscape water management program that will reimburse homeowners up to $1,000 to replace inefficient landscape design, materials, and irrigation systems. ■ Objective: Assist 5o households to reduce water waste and water use for landscaping through the Landscape Water Management Program. ■ Timing: 20o6-2014 HOUSING ■ Funding Source: General Fund, CVWD program funds, potential AB 811 special assessment district funds ■ Responsible Agency: City Manager's Office/ Planning Department Evaluation: As previously mentioned, the Cooperative Landscape Water Management Program assisted 71 homes, including the installation of 301 weather -based irrigation controllers as of March 2010. It should be noted that the program assisted all 27 RDA owned homes. Funding for the program ended December 17, 2012. With the elimination of redevelopment, it is unlikely that the City will be able to fund this program, and it will not be extended into the 2014-2021 planning period. Program H-6.5.e: Imperial Irrigation District Programs The Imperial Irrigation District (IID) is proactive in energy savings via conservation programs, product rebates, and general tips. An average home owner can save up to 10 percent on energy/energy bills by taking advantage of IID programs. Home owners can utilize the free "Check Me!" program, which checks the refrigerant charge and airflow of their air conditioning/heating units. IID also offers a rebate on the purchase of higher efficiency air conditioning units, high efficiency refrigerators, programmable thermostats, and ENERGY STAR equipment. City staff has held several meetings with IID representatives to discuss opportunities for collaboration to conserve energy in La Quinta, including water management opportunities for golf courses and golf - oriented communities. ■ Objective: Follow up with IID to establish and market a plan to participate in programs that are most beneficial to La Quinta residents and homeowners; continue to develop HVAC retrofitting program with IID. ■ Timing: Adopt plan by June 2010 ■ Funding Source: General Fund, IID program funds, and potential AB 811 special assessment district funds ■ Responsible Agency: City Manager's Office/ Planning Department Evaluation: The City's Going Green website provides information on IID rebates through links to their rebate website, including the Residential ENERGY STAR rebate program. IID is continuing to offer free, in -home residential and commercial energy audits and follow up list of recommendations intended to reduce energy consumption and the monthly bill. The City works through its partnership with IID and markets this program through meetings with Homeowners' Association boards HOUSING II-42 and various City sponsored events to encourage La Quinta residents and business to sign up for these free energy audits. This program is successful and will be extended into the 2014-2021 planning period. Program H-6.5. f: Weatherization Assistance The Federal Department of Energy's Weatherization Assistance Program, in conjunction with state and local programs, provide low or no cost weatherization and insulation services to reduce the heating and cooling costs for low income households. ■ Objective: Encourage low income homeowners or renters to apply for free energy audits, home weatherization, and utility rebate programs by advertising available programs on the City's website and at City Hall. ■ Timing: Advertise by March 2010 ■ Funding: General Fund ■ Responsible Agency: Building and Safety Department/ City Manager's Office Evaluation: The City is currently advertising available programs for free energy audits, home weatherization, and utility rebate programs on the City's website and at City Hall through handouts/flyers/posted info. This program is successful and will be extended into the 2014-2021 planning period. Public Participation California Government Code requires that local governments make a diligent effort to achieve public participation from all economic segments of the community in the development of the housing element. The City's public outreach efforts focused on community and stakeholder workshops, information dissemination through the City's website, electronic mail notifications and public hearings. Together, this input helped the City understand and respond to the housing needs of the community. Community and Stakeholder Workshops Personal invitations were sent to local and regional development entities, advocacy groups and interested parties via mail. In addition, the workshops were advertised on the City's web site, and as display ads in the Desert Sun newspaper. Two workshops were held: one for stakeholders and one for residents at large. The comments and input received from the stakeholders centered on the economic hardship created when redevelopment was eliminated HOUSING 11-43 by the State. The development community is struggling to make up the gap left by the elimination of set aside funds. The comments received from residents centered mostly on aesthetic issues, including in particular building height, and maintaining the z story limits and allowing underground parking to provide for density. State Review and Public Hearings The Draft Element was submitted to the California Department of Housing and Community Development (HCD) for review and certification. The City has received and responded to review comments from HCD to address their concerns. Once the document has been certified by HCD, the Housing Element Update will involve a noticed public hearing before both the Planning Commission and City Council, with the documents available for public review at City Hall and on the City's website. HOUSING VISION STATEMENT A Housing Vision Statement was developed based on the key housing issues and through cooperation of the citizens and elected officials of the City of La Quinta. The housing policies and programs included in this Housing Element are designed to bring this vision to fruition. "The City of La Quintu's vision of the future for housing focuses on encouraging the provision of suitable housing for all City residents while maintaining and enhancing the City's high quality of life for its residents. Through its housing programs, the City will facilitate the maintenance and improvement of its existing housing stock resources, and encourage the production of a variety of new housing to meet residents' needs, while preserving the overall character of the City." HOUSING COMMUNITY PROFILE The housing needs of the City are determined by characteristics of the population (age, household size, employment, and ethnicity) and the characteristics of housing available to that population (i.e., number of units, tenure, size, cost, etc.). This section explores the characteristics of the existing and projected population and housing stock in order to identify potentially unmet housing needs in La Quinta. This information provides direction in updating the City's Housing Element goals, policies, and programs. The demographics used in this section are derived from US Census data for 1990, 2000, 2010; US Census American Community Survey 3 and 5 year estimates data, California Department of Finance, and the City of La Quinta. Population The City of La Quinta is one of nine cities in the Coachella Valley subregion of Riverside County. The Coachella Valley includes the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage, as well as large areas of unincorporated Riverside County. La Quinta ranks high in population growth among California's 471 cities. During the 199os, the population of La Quinta grew by 111.3 percent, making it the fastest growing city in the Coachella Valley at the time. The number of residents in the City increased from 11,215 to 23,694 between 1990 and 2000. The population further increased to 37,467 by 201o, a smaller but still significant increase of 58.10 percent. The absolute increase in population for cities in the Coachella Valley provides another perspective for analysis when size is taken into consideration. For example, Indio grew by the greatest number of people from 2000 to 2010, with an increase of approximately 26,920 people. La Quinta experienced the third largest numerical increase, with an added population of 13,773• Table II-2 Population Growth City/Region 2000 2010 Census 2012 DOF 2000-2010 2010-2012 % # % # La Quinta 23,694 37,467 58.1 13,773 38,075 1.6 6o8 Coachella Valley 255,788 346,518 35.5 90,730 355,986 273 9,468 Riverside County 1 1,545,387 1 2,i89,641 41.7 644,254 2,268,783 3.6 79,142 Source: 20oo and 2010 Census; DOF 2012 HOUSING II-45 Table II-3 Population Growth In Coachella Vallev Cities City 2000 2010 Census 2012 DOF Change 2000- 2010 Change 2010- 2012 % # % # Cathedral City 42,647 51,200 20.1 8,553 52,1o8 1.8 9o8 Coachella 22,724 40,704 79.1 17,980 42,030 3.3 1,326 Desert Hot Springs 16,582 25,938 56.4 9,356 27,721 6.9 1,783 Indian Wells 3,816 4,958 29.9 1,142 5,050 1.9 92 Indio 49,116 76,036 54.8 26,920 78,298 3.0 2,262 La Quinta 23,694 37,467 58.1 13,773 38,190 1.9 723 Palm Desert 41,155 48,445 17.7 7,290 49,619 2.4 1,174 Palm Springs 42,807 44,552 4.1 1,745 45,414 1.9 862 Rancho Mirage 13,249 17,218 30.0 3,969 17,556 2.0 338 Total 255,79 1 0 346,51 1 8 35.5 90,728 355,98 6 2.7 9,468 Source: z000 and 2010 Census: DOF 2012 Seasonal Population The seasonal or part time resident population is not included in the population estimates compiled by the Census Bureau because people are classified according to the location of their primary residence. The California Department of Finance (DOF) provides a yearly estimate of total built housing units and an estimate of the number of vacant units. In resort communities like La Quinta, the number of vacant units reflects the number of units that are not occupied year round, as well as those that are ready for year round occupancy but as yet have not been inhabited. According to the 2010 Census, the overall vacancy rate for La Quinta is 36.9%, while the seasonal vacancy rate is 27.5%. Age Composition Table II-4 Age Distribution, shows the change in age groups from z000 to 2010. In 2010, children (ages 0-17) comprised 22 percent of the population, adults (ages 18-64) represented 57 percent and senior citizens (ages 65 and over) made up 20 percent. In 2010, the median age in La Quinta was 45.6 years, significantly older than Riverside County and the State of California averages of 33.7 and 35•z years respectively. This represents a 25% increase in the City's median age since z000. HOUSING II-46 Table II-4 indicates that the rate of growth in the 18-65 age group remained fairly constant from 2000 to 201o. However, the 0-17 age group reflects a slower growth rate, making up 8% less of the City's population in 2010. Conversely, growth in the 65+ age category shows an 8% increase in share of City population compared to z000. Table II-4 ALre Distribution Year 0-17 % 18-65 % 65+ % Total z000 6,905 29 13,616 57 3,173 13 23,694 2010 8,208 22 21,443 57 7,816 21 37,467 Source: z000 and 2010 Census Race and Ethnicity Table II-5 highlights the ethnic distribution of the population for 199o, z000 and 2010. In z000 slightly over one-third of the City's total population was minorities, comparable to less than a third in z000 and 199o, and just over one -fifth in 1980. Hispanic residents, 7,486 people, are approximately 86 percent of the minority population in La Quinta. Most significantly, the number of Hispanic residents in La Quinta tripled from 198o to 199o, and then doubled again from 1990 to z000. La Quinta is becoming a more ethnically diverse community. Table II-5 i98o-2000 Ethnic BackLyround of Population Ethnic Group 1990 12000 % Change 1990- 2000 2010 Change 2000- 2010 Change 1990- 2010 # % # % # % Caucasian 7,804 69.6 14,944 62.9 -6.7 23,642 63.1 0.2 -6.5 Hispanic 2,944 26.3 7,486 32.0 +5.7 11,353 30.3 -1.7 +4.0 African American 18o 1.6 226 1.4 -0.2 599 1.6 +.2 0 Native American 117 1.0 37 0.1 -0.9 112 0.3 +.2 -0.7 Asian/Pacific Islander 170 1.5 535 2.3 +.8 1,o87 2.9 +o.6 +1.4 Other NSA 1.1 426 1.8 0.7 674 1.8 0 +.7 Total 11,215 100.0 23,654 100.0 ---- 37,467 100.0 ---- --- Source: 1990, z000, and 2010 Census; Coachella Valley Association of Governments Note: Population numbers may seem distorted because the US Census does not consider Hispanic ancestry to be a race. For this reason, some Hispanics choose to list themselves under other races. 1% change presented in terms of proportional representation in the population, not of numerical increase HOUSING 11-47 Employment The economy of the Coachella Valley was traditionally agriculture - driven, but agriculture is steadily being replaced by tourism and residential uses. Although employment patterns typically induce housing demand, the regional economy of the Coachella Valley differs from most parts of the state. Here, employment is created by housing demand, manifested in the construction and staffing of resorts and second homes. Tourist and resort development are leading indicators to predict employment and housing demand. Although a tourist economy is seasonal, in the Coachella Valley it is generally stable and does not suffer the severe effects of recessions as do other regions dependent on manufacturing and consumer related goods. And with the benefit of desert weather, the resorts in the La Quinta area are increasingly operating year round. There is, however, some seasonal fluctuation in the labor market, which can further compound the problem of economic stability in the lower income sectors of the labor force, affecting their ability to sustain themselves in the off season (summer) months. According to the US Census Bureau (2007-2011 American Community Survey), in 2011 the civilian labor force comprised 17,382 persons, of whom 16,291 were employed. The unemployment rate was 6.3 percent. Table II-6 shows the types of employment by industry held by La Quinta residents in 2011. The majority of jobs held by La Quinta residents were in service industries, followed by retail trade, finance/real estate, and professional industries. Many La Quinta residents work in other communities, and many residents from other cities work in La Quinta. An estimated at 2,046 (approximately 19 percent of the total resident work force) both live and work in La Quinta. Most employment opportunities in and around the City are related to the provision of services. Table II-7 shows the major employers for the community area, defined by the La Quinta Chamber of Commerce as including La Quinta, Indian Wells, Palm Desert, and Indio. The largest employers are in the nonmanufacturing economy and are directly related to the provision of services, including public service, big box retail, and recreational and resort activities. In 2008 the City surveyed its major commercial and hospitality facilities to identify major employers in the city limits. The largest employers HOUSING II-48 surveyed were Desert Sands Unified School District, La Quinta Resort and Club, Wal-Mart, Costco, and PGA West Golf Resort. Table II-6 Employment by Industry Industry Employed Persons % of Employed Persons Agriculture, Forestry and Fisheries, Mining ii7 0.7 Arts, Recreation, Accommodation and Food Service 3,°35 i8.6 Construction 1,422 8.7 Manufacturing 773 4.8 Transportation/Warehousing/Utilities 528 3.3 Wholesale Trade 292 1.8 Retail Trade 2,228 i3.7 Finance/Real Estate i,i00 6.7 Professional and Administrative i,8i8 11.2 Health, Educational, Information, Social and Other Services 4,422 27.i Public Administration 556 3.4 Total Civilian Employed 16,291 100.0 Source: 2007-2011 ACS 5-year estimates Table II-7 Major Employers La Quinta Community Area Name of Employer Employed Persons Description Desert Sands Unified School District i,000 Public school system La Quinta Resort & Club 1,200 Resort hotel Wal-Mart Super Center 365 Retail Rancho La Quinta i50 Residential Golf Club Costco 230 Retail PGA West 235 Residential Golf Club Hideaway 122 Residential Golf Club Home Depot 240 Home improvement Imperial Irrigation District 200 Utility company Lowe's Home Improvement i45 Home improvement Stater Bros. i50 Supermarket Best Buy i00 Retail Target 200 Retail Tradition Golf Club i01 Residential Golf Club The Quarry 9i Residential Golf Club Thane Marketing International 90 Infomercial company Ralphs 88 Supermarket Source: 20o8 Employer Survey, City of La Quinta; City of La Quinta Certified Audited Financial Report 2012. HOUSING General Income Characteristics The median household income of La Quinta in 2010 was $67,444 higher than the Riverside County median household income of $58,365. Since z000, the median income for La Quinta residents has increased, with the z000 median family income reported as $54,300 for the County of Riverside and $62,500 for the City of La Quinta. Household income estimates (201o) by total households are found in Table II-8. Although the census classifications for income are not the same as the household income categories used by the State of California in housing affordability analyses, general comparisons can be made. Five household income categories are used by the State of California for housing affordability analysis based on the area median income (AMI): extremely low (30 percent or less of the area median income) very low (31 to 50 percent of the AMI), low (51 to 8o percent of the AMI), moderate (81 to 120 percent of the AMI), and above moderate (more than 120 percent of the AMI). Table II-g identifies the actual income limits for the five income categories and median income based on the HUD 2012 median income of $63,300 for a family of four in Riverside County. Table II-loestimates the distribution of extremely low, very low, low, moderate, and above moderate incomes in the City of La Quinta based on the 2011 American Community Survey. The above moderate income households constitute the largest grouping, accounting for 51.1 percent of all households. 20.7 percent of the households in the City are moderate income households, with 12.2 percent classified as Low, 7.7 percent as very low, and the remaining 8.3 percent as extremely low income households. HOUSING II-50 Table II-8 2011 Household Income Estimates Income Category Households % of Households $0 -14,999 1,020 7.2% $15,000 - 34,999 1,791 12.7% $35,000 - 49,999 1,481 10.5% $50,000 - 74,999 2,553 18.1% $75,000 - 99,999 27073 14.7% $ioo,000 + 5,205 36.9% Total 14,105 1100.0% Median Income $77,790 Source: U.S. Census Bureau, 2007-2011 American Community Survey Table II-9 Income Limits by Household Size, 2012 Household Size 1 2 3 4 5 6 7 8 Extremely $14,100 $16,100 $18,100 $20,100 $21,750 $23,350 $247950 $26,550 Low Income Very Low $23,450 $26,800 $30,150 $33,5o0 $3 6, 200 $38,900 $41,550 $44,250 Income Low Income $37,550 $427900 $48,250 $53,600 $57,900 $62,200 $667500 $70,800 Moderate $53,150 $60,750 $687350 $75,950 $82,050 $88,100 $94,200 $1007250 Income Median $44,330 $50,650 $56,950 $63,300 $687350 $73,450 $787500 $83,550 Income Source: HCD 2012 Table II-i0 Households by Income Category, 2010 Income for Family of 4 Number of Households Percentage of Total Extremely Low 1,334 8.3 Very Low 1,237 7.7 Low 1,952 12.2 Moderate 3,311 20.7 Above Moderate 8,184 51.1 Total 16,018 100.0 Source: 2005-2009 ACS 5-year data; US Census, SCAG The 2010 Census reports that 2,885 persons, 7.7 percent of the total population in the City, were below the poverty threshold. HOUSING Approximately 16 percent of La Quinta households earn 50 percent or less of the AMI. This is to percent less than in z000, and indicates a significant improvement in incomes for lower income households. HOUSING PROFILE This section provides an overview of La Quinta's existing housing stock. Since the establishment of the La Quinta Hotel in 1926, La Quinta has been considered to be a world class resort and has been a favored location for vacation and retirement homes. Generally, single-family residences were constructed on an individual basis from the 1950s until the La Quinta Country Club area was developed in the 196os. In 1975 a brief building boom began due to speculation. Recessions in the 198os and early 199os resulted in an oversupply of housing and little construction in the City. Since these recessions, a rebound occurred beginning in the late 199os. As a result the City has seen a rapid increase in residential development of all types, but predominantly single-family units. There are many projects clustered around recreation amenities. In many of these communities second units and guest houses (typically used to house guests, extended family members, and service workers) are processed concurrently with the primary unit. While new single-family detached and attached homes are entitled and waiting to be built, the bust of subprime lending practices in the mid z000s has resulted in a steep decline in home values, rapid increase in foreclosures, and a decrease in the number of households eligible to enter the ownership housing market. Several projects under construction in zoo7 and 2oo8 have been on hold indefinitely, but there has been recent interest in revising these projects to reflect the new characteristics of the emerging recovery of the area's housing market.. Housing Characteristics Between z000 and 2010, the number of housing units in the City increased by 11,677 units from 11,812 to 23,489 units. This change represents a 98.9 percent increase (see Table II-11). There are three basic types of housing units for which data is presented in Table II-12: single family units, which include both detached and attached units; multifamily units, which include apartments, duplexes, triplexes and fourplexes; and mobile homes. The predominant type of dwelling unit in the City of La Quinta continues to be single family. HOUSING II-52 Together, detached and attached single-family homes comprised 89.o percent of all units in the City. The number of multifamily units in the City more than doubled from 2000 to 201o, although multifamily units represent to percent of the total housing stock. The rate of development activity in the City has varied over the years, as shown in Table lk3. The numbers in Table II-13 are based upon the number of building permits issued, as compared to units built to date. Therefore, the number of units reported is greater than that as reported by DOF for a similar time period. The annual growth rate for development activity hit a high of 24.7 percent in 1988 but dropped dramatically in subsequent years, to a low of 3.7 percent in 1991. While growth rates began to improve during the 199os to around 5 to 9 percent, growth in housing production peaked in the mid-20oos, and began to drop significantly in 2007. Table II-1i Total Housing Stock z000 to 2010 2000 2010 Change 2000-2010 % # California 13,312,456 13,68o,o81 +2.8 +367,625 Riverside County 584,674 8o0,707 +36.9 +216,033 La Quinta 11,812 23,489 +98.9 +11,677 Source: z000 & 2010 Census; DOF Table II-12 Total Dwelling Units by Tvpe of Structure z000 to 2012 Building Type 2000 2012 Change 2000-2010 Units of Total Units % of Total % # Single -Family 10,788 91.3 21,009 89.o +94.7 +10,221 Multifamily 765 6.5 2,345 10.0 +2o6.5 +1,580 Mobile Homes 259 2.2 231 1.0 —1o.8 —28 Total Dwelling Units 11,812 100.0 23,585 100.0 +99.7 +11,733 Source: z000 Census data and 2012 DOF 'In 2oo6 a mobile home park was converted to the Vista Dunes affordable housing project. The residents of the 92 mobile homes were compensated and relocated. HOUSING 11-53 Table II-13 Historic Record of Housing; Development Year Single- Family Detached Single- Family Attached Multi- family Mobile Homes Demo Annual Total Sum Total Annual growth W Pre- 1983 1,415 374 168 0 ---- N/A 1,957 N/A 1983 20 227 10 226 ---- 483 2,440 24.7 1984 82 202 2 - -- ---- 286 2,726 11.7 1985 74 307 0 ---- ---- 381 3,107 14.0 1986 158 237 3 ---- ---- 398 3,505 9.7 1987 143 123 0 ---- ---- 266 3,771 5.9 1988 467 712 0 ---- ---- 1,179 4,950 24.7 1989 587 142 0 ---- -6 723 5,673 12.2 1990 707 371 0 ---- -4 1,074 67747 16.1 1991 282 4 0 ---- ---- 286 7,033 3.7 1992 283 32 0 ---- ---- 315 7,348 3.9 1993 312 12 0 ---- ---- 324 7,672 3.9 1994 474 24 0 ---- ---- 498 8,170 5.7 1995 380 28 91 ---- 499 87669 5.4 1996 462 24 116 ---- ---- 602 9,271 6.2 1997 466 28 1 ---- -1 494 9,765 4.8 1998 870 34 0 ---- -2 902 1o,667 8.4 1999 1,171 20 0 ---- -4 1,187 11,854 10.2 2000 1,274 58 200 ---- ---- 1,532 13,386 11.9 2001 898 4 0 -11 891 14,277 6.2 2002 570 87 117 ---- -13 761 15,038 5.0 2003 1,030 78 280 ---- -10 1,378 16,416 9.2 2004 1,293 111 14 ---- -21 1,397 17,813 8.5 2005 1,242 2o6 151 ---- -12 1,587 19,400 8.9 20o6 719 148 327 -92 -6' 1,o96 20,496 5.7 2007 448 ---- ---- -21 -3 424 20,920 2.1 20o8 230 6 218 -3 451 21,371 2.2 2009 103 6 0 -4 105 21,476 0.5 2010 73 6 0 --- ---- 79 21,555 0.4 2011 34 4 0 ---- -2 36 21,591 0.2 2012 49 0 176 ---- -1 224 21,815 1.0 To 6/1/13 52 0 0 ---- ---- 52 21,867 0.2 Source: City of La Quinta Historic Record of Housing Development, 2012; City of La Quinta Monthly Building Permit Logs, 20o6-2013 ' In 20o6 a mobile home park was converted to an affordable housing project; the mobile homes are not included in the demolished category. The residents of the 92 mobile homes were compensated and relocated. A significant factor affecting the number of available units throughout most communities in the Coachella Valley is the fact that many housing units are held off the market for use either as short term vacation rentals or as second homes. Statistics available from DOF as of January 1, 2013, indicate that the vacancy rate in La Quinta is 36.9 percent, reflecting the seasonal resort character of the City. The 2010 Census HOUSING II-54 estimated that 74.4 of vacant housing units in the City are for seasonal or occasional use. On that basis, the City's actual net vacancy rate is 9.5%. Household Characteristics Before current housing problems can be understood and future needs anticipated, housing occupancy characteristics need to be identified in the City. The following is an analysis of household size, household growth, tenure, and vacancy trends. By definition, a "household" consists of all the people occupying a dwelling unit, whether or not they are related. A single person living in an apartment is a household, just as a couple with two children living in the same dwelling unit is considered a household. Households and Household Size Between z000 and 201o, La Quinta households grew at a rate more than twice that of Riverside County, as shown in Table II-14. It is important to note, however, that the vast majority of this growth occurred prior to 2oo8, and that growth ceased almost completely. The total number of households in the City in 2010 was 14,820, which represents a net increase of 6,375 households since z000. Table II-15 shows the number of households in La Quinta by household size. Household size is important, as the City uses the average household size to plan for most public improvements and services and to project population. The 2010 Census estimates the number of persons per household at 2.52, and January 1, 2013, DOF estimates show a slight increase, at 2.57 persons per household. Table II-14 Total Households, z000 and 2010 Jurisdiction z000 2010 # Increase i Increase County of Riverside 5o6,218 686,26o 180,042 35.6 City of La Quinta 8,445 14,820 6,375 75.5 Source: z000 and 2010 Census HOUSING II-55 Table II-15 Household Size, z000 and 2010 Household Size 2000 2010 Number Percent Number Percent 1 Person 1,426 16.9 3,164 21.3 2 Person 3,304 39.1 6,471 43.7 3-4 Person 2,556 30.2 3,669 24.8 5+ Person 1,169 13.8 1,516 10.2 Total Households 8,455 14,820 Average Household Size 2.79 2.52 Source: 2000 & 2010 Census Note: Total number of households and average household size obtained from DOF and distribution extrapolated based on 2000 Census figures. Housing Tenure The number of owner occupied housing units in the City has not fluctuated much during the last decade. In z000, La Quinta owners occupied 81.5 percent of total units in the City, compared to 75.2 percent in 2010. As shown in Table II-15, the number of owner occupied units decreased from 81.5 percent in z000 to 75.2 percent (11,152 units) in 201o. The increase in the proportion of renter occupied housing units in La Quinta from 18.5 percent (1,566 units) in z000 to 24.8 percent in 2010 reflects the various factors associated with the recent economic downturn: job loss, sub -prime lending practices, Vacancy The vacancy rate is a measure of the general availability of housing. It also indicates how well the types of units available meet the current housing market demand. A low vacancy rate suggests that households may have difficulty finding housing within their price range; a high vacancy rate may indicate either the existence of a high number of units undesirable for occupancy or a simple oversupply of housing units. Statistics available from DOF as of January 1, 2013, indicate that the vacancy rate in La Quinta is 36.9 percent, reflecting the seasonal resort character of the City. The 2010 Census estimated that 74.4 of vacant housing units in the City are for seasonal or occasional use. On that basis, the City's actual net vacancy rate is 9.5%. Of the 8,669 vacant units in 2010, 736 were available for rent, 783 were available for sale, and 141 had been rented or sold and were awaiting HOUSING II-56 occupancy. The remaining 6,448 units were counted as seasonal or second homes. Table II-16 Housing Tenure and Vacancy Tenure 2010 Percentage Total Units Total Units 23,489 100.0 Occupied 14,820 63.1 Vacant 8,669 36.9 Ownership Units Total Ownership Units 12,022 100.0 Occupied 11,152 92.8 Vacant 870 7.2 Rental Units Total Rental Units 4,458 100.0 Occupied 3,668 82.3 Vacant 790 17.7 Seasonal/Other Units Total Seasonal Recreational Use 6,448 Rented or Sold, not occupied 141 -- Other Vacant 561 -- Source: 2010 Census Age and Condition of Housing Housing age is a factor for determining the need for rehabilitation. Without proper maintenance, housing units deteriorate over time. Also, older houses may not be built to current housing standards for fire and earthquake safety. Approximately 72 percent of the housing stock in the City of La Quinta has been built since 199o, and about 42 percent of the current stock has been constructed since 2000 (see Table II-17). Less than 4 percent was constructed prior to 1970. The oldest homes in the City are found in the Cove neighborhood. Of the older single family homes, many are well maintained and are mostly occupied by long term residents. A small proportion of older homes have not been well -maintained. These homes are typically smaller than new homes in the City; some less than 1,000 square feet. As land values increase, it will become economically viable to replace HOUSING 11-57 or rehabilitate some of these structures. These homes are primarily in the Cove area and behind City Hall. Outside of the Cove area, the homes are generally newer. Many new units in these other areas are custom homes in gated communities and are maintained by their owners in accordance with the requirements of a home owners association. Table II-17 Abe of Housing Stock in La Ouinta Year Built Total Percentage 2005-2011 2,161 9.8 2000-2004 7,176 32.5 1990-1999 6,448 29.2 198o-1989 3,658 16.6 1970-1979 1,867 8.4 196o-1969 427 1.9 1950-1959 159 0.7 1940-1949 84 0.4 Before 1939 102 0.5 Total Stock Z 22,o82 100.0 Source: 2007-2011 5-year ACS Census data Housing is considered substandard when conditions are found to be below the minimum standards of living defined by Section loos of the Uniform Housing Code. Households living in substandard conditions are considered as being in need of housing assistance even if they are not seeking alternative housing arrangements. The majority of the substandard units and the units needing replacement are in the Cove area. Many of the housing units in the Cove area are more than 30 years old. After 30 years homes generally require major rehabilitation, such as a new roof or updated plumbing. Housing Conditions Survey Methodology A citywide survey of the housing stock was conducted in November zoo7 to make observations of housing conditions. Some older areas of the City that are known to have particular housing problems include the Cove, Desert Club tracts, Cameo Palms, and Westward Ho neighborhoods. The survey addressed five housing characteristics: ❖ Structural, such as walls, beams, supports, and columns. HOUSING II-58 ❖ Doors and windows, including soffits, overhangs, and entries. ❖ Paint and cosmetics, looking for fading, cracking, or chipping of paint, stucco, plant-ons, and trim or fascia. ❖ Roofing, looking for missing or broken tiles or shingles, sagging or bowing, or eave damage. ❖ Streetscape, including landscape, graffiti, and refuse. The survey measured each characteristic for each home based on a four -point scale: minor deterioration (one point), moderate deterioration (two points), substantial deterioration (three points), and dilapidated conditions (four points). The values assigned for the five characteristics were summed for each home and divided to create an average score. Homes receiving an average score of less than 1.o were classified as units that have simply deferred maintenance. When a home averaged a score of 1.0-1.5, the home was identified as in need of minor rehabilitation. If the average score reached 1.6-2.5, the home was identified as in need or moderate rehabilitation. Finally, any home that received an average score of 2.6 or higher was identified as in need of substantial rehabilitation. Housing Conditions Survey Results The majority of units surveyed were found to be in good condition, with little or no observation of deferred maintenance or need for repairs. The survey showed that approximately 1,470 units in the City (approximately 7 percent of the housing stock) exhibited the need for maintenance activities or structural repair. Deferred Maintenance Almost all of the units identified in the survey, 1,408 units, were assigned an overall score of less than 1.o and are classified as deferred maintenance. The buildings under this classification do not display major structural deficiencies, but include characteristics that do require attention. In general, these units exhibited only minor deterioration for a couple of characteristics. For example, some painting or minor repairs to the fascia, trim, windows, garage, and front doors may be needed. The surface material or rock/pebble protective covering of the roof may need HOUSING II-59 attention. Most frequently cited are cases where the aggregate/pebbles have been stripped or worn off, and the black asphalt/tarred sheet rock underlayment is exposed. Units displaying warped garage doors that do not close all the way, peeling paint on wood siding, and unpainted or major discoloration of patches of stucco are also included in this classification. Units in the deferred maintenance category may also reflect the need for fence repair or paint; the complete lack of landscaping, where the yard consists of dirt, weeds, dead plants, or rusting metal of unknown sources; and neglect of portions of the yard or exterior structures (such as shade overhangs, porticos or fences). Other circumstances that contribute toward the deferred maintenance ranking include the use of the front/side yards for unstructured/unorganized/ unshielded storage of vehicles, old tools, old machinery, propane tanks, broken doors, windows, furniture, and other types of clutter; and the storage of campers or camper shells in the front yard rather than the driveway. In some cases these camper units appeared to be occupied. These characteristics do not, for the most part, compromise the structural integrity of the housing unit. However, they can lead to more serious physical deterioration and contribute to an overall atmosphere of neighborhood neglect and disrepair ("blight"). In some cases, units exhibit several substandard physical conditions concurrently, (such as need for window repair, stucco patching, and replacement of garage doors), but don't exhibit yard maintenance deferral. These units are technically indistinguishable from those units in the minor rehabilitation category. If a unit in the deferred maintenance category reveals the existence of three or more physical conditions, it is worth considering for minor rehabilitation. Other characteristics not specifically ranked may also warrant minor rehabilitation. Minor Rehabilitation There were 36 units that received an average score of 1.0-1.5 and were classified as minor rehabilitation. A total of 30 of these units were in the Cove area. This classification reflects the presence of three or more deferred maintenance items and/or the inclusion of one non-structural major deficiency. Most combinations of conditions showing need for minor rehabilitation included deferred yard/fence maintenance and paint or HOUSING II-6o stucco repair. A unit exhibiting characteristics warranting a minor rehabilitation classification may not necessarily reflect the existence of a major deficiency. The majority of units in the minor rehabilitation category reflect the presence of numerous deferred maintenance conditions. These conditions may begin to physically deteriorate the unit, yet do not materially endanger the occupation of the unit, and are economically feasible to correct. Moderate Rehabilitation Of the 23 units classified as in need of moderate rehabilitation, zo are in the Cove area. Receiving average scores of 1.6-2.5, these units distinguish themselves from those in need of minor rehabilitation by exhibiting conditions that may materially endanger the health, safety, or wellbeing of the occupant. These units, however, may be economically feasible to repair. Based upon survey observations, the structures in this Moderate Rehabilitation category are clearly in a deficient state. For the most part, four to five deferred maintenance deficiencies, more than one major deficiency, or a primary structural element needing major repair, were observed for units in the moderate rehabilitation category. The most prevalent characteristics observed in single-family units of this category were need for major roof repair, window replacement, or some slight structural or concrete repair. These characteristics are compounded by deferred maintenance items such as trim or garage doors lacking paint, deferred upkeep of landscaping and fencing, and roofs in need of patching. Many homeowners may not be aware of rehabilitation programs that can help them bring their home up to code. The City will list these resources on its website and may be able to provide financial assistance for home rehabilitation. The County of Riverside also offers a home repair program. Substantial Rehabilitation or Replacement The four housing units classified as substantial rehabilitation are units that, in their present state, materially endanger the health, safety and/or wellbeing of occupants in at least one respect. These units received an average score of 2.6 or greater and may not be economically feasible to repair. These units exhibit characteristics such as need for complete replacement of the roof structure, walls that will require HOUSING II-61 reconstruction/replacement, major stucco and painting needs, partial foundation deterioration, and dilapidated yard/grounds and fences. In addition to structural deficiency, the lack of certain infrastructure and utilities often serves as an indicator of substandard conditions. According to the 2000 Census, there were 19 ownership units that lacked complete plumbing facilities and 34 units in the City that lacked complete kitchen facilities. Additionally, there were 15 units reliant on wood as the heating source, and 67 units with no source of heating. The City initiated a Residential Rehabilitation Assistance Program in 1997 and rehabilitated a total of 13 homes between 1997 and 2004. The program was discontinued in 2004 due to a lack of interest from property owners and contractors. From 2010 through 2012, the Code Compliance Division has acted on 185 violations relating to the Building Code. While Code Compliance statistics do not differentiate violation statistics into categories, most Building Code violations would include conditions which threatened public health and safety, such as roofing failure, major wall repair, foundation repair, and similar conditions. All the violations were corrected. Rooms per Unit Table II-18 shows the number of bedrooms per unit, ranging from no bedroom (studios) to five or more bedrooms. Table II-18 also highlights the number of bedrooms per unit, in relationship to the total number of units for both 200o and 2011. The single largest increase proportionally was in three -bedroom units, which increased 8 percent from 2000 to 2011. HOUSING II-62 Table IH8 Bedrooms Per Unit, 2000-2011 Bedrooms Per Unit 2000 % of Total 2011 % of Total % Change' Studio (no bedroom) 159 1.3 248 1.1 -0.2 1 375 3.2 1,296 5.5 2.3 2 2,101 17.9 4,510 19.1 1.2 3 7,013 60.0 12,251 52.0 -8.0 4 2,044 17.4 4,595 19.5 2.1 5+ 71 0.6 657 2.8 2.2 Total 11,763 1 100.4 23,557 100.0 ---- Source: z000 Census, 2007-2011 American Community Survey. ' This category represents percent change in proportional terms. Table II-19 identifies the number of bedrooms in a dwelling unit by tenure. Three -bedroom units constituted the majority of housing stock (approximately 59 and 44 percent, respectively) for both owner and rental units. In ownership units, those with two, three, or four bedrooms made up 96 percent of units, while the same bedroom mix made up only 83 percent or rental units. As would be expected, rental units contained a much higher proportion of one -bedroom units, providing housing for those who are young, mobile or do not earn enough to enter homeownership. HOUSING 11-63 Table II-19 Bedrooms in Dwelling Unit by Tenure, 2010 Tenure Number Percentage Owner Occupied 10,238 goo Studio (no bedroom) i8 i i bedroom 84 i 2 bedrooms i,i00 ii 3 bedrooms 6,o66 59 4 bedrooms 2,638 26 5 or more bedrooms 332 3 Renter Occupied 3,643 too Studio (no bedroom) 28 i i bedroom 602 i7 2 bedrooms i,ii0 30 3 bedrooms i,589 44 4 bedrooms 314 9 5 or more bedrooms 0 0 Total 13,881 too Studio (no bedroom) 46 i i bedroom 686 5 2 bedrooms 2,200 i6 3 bedrooms 7,655 55 4 bedrooms 2,952 21 5 or more bedrooms 332 2 Source: U.S. Census Bureau, 2008-2010 American Community Survey. Housing Costs and Rents This section discusses resale pricing for existing housing, the pricing for new single family housing, and the average rental prices in the City. La Quinta's for -sale and rental properties range from multimillion dollar estates to very low income subsidized units. Resale Homes The average price for a resale home in the City varies, depending upon the type and location of the unit. As shown in Table II-20, approximately 49 percent of single-family detached homes and 40 percent of condominiums were listed under $3oo,000. Available condominiums have a wide price range depending on location, bedroom count, and amenities associated with the subdivision. The median home sales price for an existing home in the 2nd quarter of 2012 was $330,000, an increase of 9.2% over the previous year, but a 15% drop from the same period in 2010, when the median sales price stood at $384,000. HOUSING II-64 Table II-20 Sample Resale Prices of Single -Family Homes and Condominiums Single-family Homes Condominiums Price Range Number Percent Number Percent $750,000- 75 13% 0 0% $3,500,000 $500,000- 83 14.5 13 1o.6 $749,999 $400,000- 45 8% 15 12.2% $499,999 $350,000- 30 5% 29 23.6% $399,999 $300,000- 63 11% 17 13.8% $349,999 $250,000- go 15.7% 17 13.8% $299,999 $200,000- 70 12.2% 19 15.4% $249,999 $150,000- 79 13.8% 7 5.7% $199,999 $125,000- 19 33% 5 4.1% $149,999 $75,000- 17 3.0% 1 o.8% $124,999 $0-$74,999 3 0.5% 0 0% Total 574 t00% 123 t00% Source:: www.Trulia.com, April 2013 (1/1/13 - 4/20/13) New Homes The construction of new homes in the City has been severely curtailed by the recession. The median price for a new home in the 2"d quarter of 2012 was $475,000, a 3% decrease from the previous year, and 1% less than in 201o. The new housing market in La Quinta has yet to recover. A number of projects that are approved but not yet constructed have been stopped. The owners of undeveloped or unfinished residential projects may decide to sell the land or hold the land and restart construction during the next upswing in the housing market. Some new properties have been auctioned off and others are being sold back to financial institutions. Overall the housing market in La Quinta is more affordable than in previous years. During the 2oo6-2013 planning period, the City built affordable for -sale units in addition to affordable rental projects. Watercolors, a 149-unit project that opened in 2007, includes two- and three -bedroom units affordable to moderate income households (ages 55 and over). HOUSING II-65 Rental Units Table II-zz provides a listing of advertised rents for a selection of apartment properties. These market rate units are largely affordable to moderate income households of any size. New rental projects in La Quinta, particularly affordable projects, are incorporating more aspects of sustainable design and green building. The Vista Dunes Courtyard Homes project, constructed in 20o8, which provides 79 rental units affordable to very low income households and one unit affordable to a moderate income household. Vista Dunes is the first very low income multifamily project of its size in the country to achieve LEED Platinum certification. The project provides a swimming pool, playground, basketball court, and large community multipurpose room. Wolff Waters Place, built in 2009, includes 218 green -built apartments, of which 216 are affordable to very low income households and z are affordable to moderate income families. Coral Mountain Apartments is designed for 176 units, of which 36 are proposed to be affordable to very low income households, 138 to low income households, and z units will be affordable to moderate income households. The project will be completed in 2014, early in the planning period. Washington Street Apartments consists of 72 existing one -bedroom apartment units located on approximately 4.7 acres of land. These units will be rehabilitated by the City, and 68 new one -bedroom units, on approximately 5 additional acres, will be added. The majority of apartment rental properties are offered at costs comparable to the average rental costs for the Coachella Valley as a whole. The affordability of rental housing in La Quinta is not directly tied to the density of the project; rather, prices range based on condition, on -site amenities, location, and unit size. HOUSING II-66 Table II-21 Representative Apartment Market Rental Rates Project Name Unit Size Market Rental Rate Villagio at La Quinta 1 & 2 Bdrm $1,129-1,285 Mediterra 1 & 2 Bdrm $999-1,390 Villa Cortina 1, 2,3 & 4 Bdrm $666-842 Aventine 1 & 2 Bdrm $1,045-1,245 Vista Dunes 1, 2 & 3 Bdrm $277-711 HOUSING NEEDS The following analysis of current City housing conditions presents housing needs and concerns relative to various segments of the population. Several factors will influence the degree of demand or need for new housing in La Quinta in coming years. The four major "needs" categories considered in this element are: Overpayment: renters and homeowners who must pay more than 30 percent of their gross incomes for shelter. Overcrowding: In response to higher housing prices, lower income households must often be satisfied with smaller, less adequate housing for available money. Special Needs: Special needs are those associated with relatively unusual occupation or demographic groups that call for very specific program responses, such as preservation of residential hotels or the development of four -bedroom apartments. State law specifically requires analysis of the special housing needs of the elderly, the disabled, single -parent households, large families, farm workers, and homeless persons. Future Housing Needs: To meet future needs of local and regional population and employment growth, SCAG developed the Regional Housing Needs Assessment (RHNA), which establishes both the projected need for non -market -rate housing and the "fair share" distribution of the projected need to each jurisdiction in each market area. HOUSING 11-67 Overpayment and Housing Affordability State housing policy recognizes that cooperative participation of the private and public sectors is necessary to expand housing opportunities to all economic segments of the community. Historically, the private sector generally responds to the majority of the community's housing needs through the production of market -rate housing. However, the percentage of the population on a statewide basis who can afford market -rate housing is declining. The State of California and HUD determined that affordable housing should consume no more than 30 percent of household gross income for lower and moderate income households. A household spending greater than 30 percent of their gross income on housing is considered to be overpaying. Table II-zz lists the percentage of renters and homeowners who overpay for housing, based on zoos-zoog CHAS data. Approximately 19 percent of all households in La Quinta spent more than 30 percent of their income on housing costs. More than 33 percent of renter households (1,245) experienced overpayment, while only 14 percent of owner households (1,69o) overpaid for housing. For extremely low income households, 11.o percent of renters and 3.7 percent of homeowners overpaid for housing. For very low income households, 13.6 percent of renters and 16.7 percent of homeowners overpaid for housing. For low income households, 14.8 percent of renters and 26.2 percent of homeowners overpaid. Furthermore, many of these households were actually paying more than 50 percent of their gross household income for housing. HOUSING II-68 Table II-22 OverDavment by Income Category and Tenure Number of Percent Percent Household House- of of Total' Tenure Income' Cost Burden2 holds Overpay3 Extremely Low 30%-50% 25 0.9% 0.2% Income Owner Extremely Low Greater than Occupied Income 50% 405 13.8% 3.5% Very Low Income 30%-50% go 3.1% o.8% than Very Low Income Greater 400 13.6% 3.4% Low Income 30%-50% 370 12.6% 3.2% Greater than Low Income 400 13.6% 3.4% 50% Total Owner Occupied Overpaying i,6go 57'6% 14.4% Extremely Low 30%-50% 175 6.0% 4.7% Income Renter Extremely Low Greater than Occupied Income 50% �35 8.0/ 6.3/ Very Low Income 30%-50% 100 3.4% 2.7% than Very Low Income Greater 300 10.2% 8.o% Low Income 1 30%-50% 205 7.0% 5.5% than Low Income Greater 230 7.8% 6.2% Total Renter Occupied Overpaying l,245 42.4% 33.3% Total households overpaying for housing: 2,935 100.0% 19.0% Source: 2005-2009 CHAS Total Owner Occupied = 11,705 Total Renter Occupied = 3,735 ' Note: HUD and CA HCD use different terminology/methodology to define Household Income, but they are roughly equivalent. The table above uses HCD's terminology ("extremely low, very low, low") since that's what we use in HE documents. 2 Percent of monthly income spent on housing costs, including utilities 3 Percent of households that overpaid. ' Percent of total households per tenure. A distinction between renter and owner housing overpayment is important because, while homeowners may overextend themselves financially to afford a home purchase, the owner maintains the option of selling the home and may realize tax benefits or appreciation in value. Renters, on the other hand, are limited to the trends of the rental market. HOUSING II-6g These overpayment estimates reflect the need for affordable housing in the City, particularly for lower income households. It also reflects the need for homes affordable to Low and Very Low income households to be available in the City for purchase. Overpayment among the Moderate and High income categories is a reflection of current economic conditions, and the mortgage crisis still under way. In addition, some owner households choose to allocate a higher percentage of their disposable monthly income on housing costs because this allocation is justified in light of investment qualities of ownership. Table II-23 identifies the affordable rents and purchase price by income category for a one -person household, a two -person household, and a family of four. Affordable rental rates are based on 30 percent of gross income, and affordable ownership costs are determined using a maximum allowance of 35 percent of gross income. To measure affordability in La Quinta, affordable housing expenditures should be compared with actual rental and purchase prices in the City. HOUSING II-70 Table II-23 Affordable Housing Costs by Annual Income Type Annual Income (2013)' Maximum Affordable Rent Payment' Maximum Affordable Purchase Price 3 Single -Person Household Extremely Low $14,100 $326 $47,250 Very Low $23,450 $543 $85,050 Low $37,550 $869 $141,750 Moderate $54,600 $1,365 $217,350 Above Moderate $54,600+ Above $1,303 Above $217,350 Median $45,500 $1,085 $179,550 Two -Person Household Extremely Low $16,100 $403 $50,850 Very Low $26,800 $670 $91.530 Low $42,900 $1,073 $152,550 Moderate $62,400 $1,560 $233,910 Above Moderate $62,400+ Above $1,56o Above $233,910 Median $52,000 $1,300 $193,230 Four -Person Household Extremely Low $20,100 $503 $74,800 Very Low $33,500 $838 $132,000 Low $53,600 $1,340 $215,600 Moderate $78,000 $1,950 $328,900 Above Moderate $78,000+ Above $1,95o Above $328,goo Median $65,000 $1,625 $272,800 Income limits established by HCD, 2013. Z Based on 30 percent of income. s Based on 35 percent of income, lo% down, 4% interest, and 1.25% taxes and homeowner's insurance monthly. Affordability of Homeownership Since 20o6 the City and Valley have experienced a wide range of pricing options due to foreclosures and decreases in home values. While there are still multimillion dollar homes for sale, there are also new and fairly new homes for sale at prices that are affordable to the median and moderate income household. Even with the downturn in the housing market, some single-family dwellings would be unaffordable to lower income households. The median sale price range of $330,000 to $475,000, puts single-family homes out of reach for most of the low and all of the very low income households in the City. Affordability of Rental Costs Low and moderate income households can afford to spend $869 to $1,950 per month on rent and utilities. As shown in Table II-23, the HOUSING average rent for many of the listed apartments range from $boo to $1,250—well within the affordable range for these households. Hundreds of lower and moderate income households are served by existing projects. Newly constructed income -restricted rental projects provide 218 units of new rental housing for very low and low income households. With the market -rate rental market essentially closed for extremely low and very low income households, however, it is evident that their major source of affordable housing will continue to be found through income -restricted housing projects, housing voucher programs, second units, and employee/guest houses. Overcrowding The Bureau of the Census defines overcrowded housing units as "those in excess of one person per room average." Overcrowding may occur when a family or household cannot afford adequate living space, has to house extended family members, or is sharing inadequate living space with nonfamily members. When more than one family shares a housing unit it is called doubling. Households with lower incomes may permit overcrowding to derive additional income, or there may be insufficient supply of housing units in the community to accommodate the demand. Table II-24 shows that 2.4 percent of the total occupied housing units were moderately overcrowded from 2009-2011, a decrease from 3.6 percent in z000. A slightly higher incidence of overcrowding was experienced among the rental tenure group. This is supported by the finding that the number of persons per unit in renter -occupied housing units was slightly higher than owner occupied, with 2.82 persons per unit as compared to 2.44 for owner -occupied households'. Although renter households constituted only 27.1 percent of all households in the City, approximately 6.o percent of renters experienced overcrowded conditions, with 1.8 percent of all renters experiencing severe overcrowding. In comparison, within owner -occupied households, which constitute 72.9 percent of all households in the City, 1.1 percent experienced overcrowded conditions, with 0.2 percent experiencing severe overcrowding. These numbers have reduced by almost one half for renter occupied, and more than three -fourths for owner occupied since the z000 Census. ' U.S. Census Bureau, 2009-2011 American Community Survey. HOUSING II-72 16.4 percent of renter households (654 households) had five or more persons, as compared to approximately 6.2 percent of owners. Large households often require homes with at least three bedrooms. According to the ACS, there were 3,418 housing units in the City with four or more bedrooms. Of these, 10.7 percent, or 365 units were renter occupied. Table II-24 Overcrowdiner Owner Renter Total Households of % of % of Status Number Owners Number Renters Number Total Not 10,103 98.7 3,313 90.9 13,4i6 96.7 Overcrowded Moderately 97 1.0 237 6.5 334 2.4 Overcrowded Severely 38 0.3 93 2.6 131 0.9 Overcrowded Total 10,238 100.0 1 3,643 100.0 113,881 100.0 Source: U.S. Census Bureau, 2oo8-2010 American Community Survey. Note: Universe is total households in occupied housing units. Housing units that exceed 1.o or more persons per room are considered moderately overcrowded. Housing units that exceed 1.5 or more persons per room are considered severely overcrowded. Special Needs The state requires that the special needs of certain disadvantaged groups be addressed in the Housing Element. Selected populations with special housing needs include the elderly, handicapped, large families, single -parent households, the homeless, and farm workers. Elderly Persons The special housing needs of the elderly are an important concern for the City of La Quinta, since many retired persons residing in the City are likely to be on fixed low incomes. Besides affordability concerns, the elderly often maintain special needs related to housing design and location. With regard to housing design needs, the elderly may require ramps, handrails, lower cupboards and counters, etc., to allow greater access and mobility. They also may need special security devices for their homes to allow greater self-protection. The elderly also have special needs regarding location. They typically need to have access to public facilities (i.e., medical and shopping) and transit. In most instances, the elderly prefer to stay in their own dwellings rather than relocate to a retirement community, and may need assistance to make home HOUSING 11-73 repairs. Every effort should be made to maintain their dignity, self- respect, and quality of life. According to ACS, 7,734 City residents, or 21 percent of the total population, were 65 years of age or older as compared to 13.4 percent in z000. Based on 2009-2011 income levels, approximately 7.2 percent of the senior households have been determined to fall below the poverty level. According to ACS, there were 1,971 senior -headed owner occupied households overpaying for housing. There were 278 senior -headed rental households overpaying. Apart from privately owned housing units, the City has several options for senior living. Among these are: The Seasons development, which offers 91 senior units in the very low and low affordable price range; Miraflores, a project completed in 2003 that supplies 118 senior units in the low and moderate income price range; and Hadley Villas Senior Apartments, an affordable project completed in 2004 that offers 81 units in the very low income price range. Continued construction of multifamily units will aid greatly in meeting the needs of seniors currently overpaying for rental units. Table II-25 City of La Quinta Householders 65 Years and Over. by Tenure Owner- Renter- Total Occupied Occupied Occupied Housing Units Housing Units Housing Units Total, City of La Quinta 10,734 3,992 14,726 Total, Householders 65 Years & Over 4,019 911 4,930 Source: 2009-2011 American Community Survey, 3-Year Estimates Disabled Persons Physical and developmental disabilities can hinder access to housing units of traditional design, and potentially limit the ability to earn adequate income. The three major housing needs of the disabled are access, location, and affordability. Disabled persons often require specially designed dwellings to provide access not only within the dwelling, but to and from the unit. Special modifications to permit free access are very important in maintaining independence and dignity. The California Administrative Code Title 24 Requirements set forth access and adaptability requirements for the physically handicapped. These regulations apply to public buildings HOUSING 11-74 such as motels, and require that ramps, larger door widths, restroom modifications, etc., be designed to enable free access to the handicapped. Such standards are not mandatory of new single-family residential construction. A number of disabled persons receive supplemental Social Security Income and are on fixed incomes. Increasing inflation and housing costs adversely affect these individuals' ability to secure affordable housing. The 2009-2o11 ACS identified 4,143 persons in the City with disabilities, of which 1,753 (42.3%) were persons over the age of 65. The table below identifies the number of disabilities, by type, for La Quinta residents. Table II-26 City of La Quinta Number of Disabilities. by Disability TVDe' Number of Disabilities percent of Total Disabilities Disabilities, ages o-64 Hearing Difficulty 567 7.4% Vision Difficulty 210 2.8% Cognitive Difficulty 954 12.5% Ambulatory Difficulty 1,308 17.1% Self -Care Difficulty 517 6.8% Independent Living Difficulty 1,032 13.5% Total, ages o-64 4,588 6o.o% Disabilities, ages 65+ Hearing Difficulty 841 11.0% Vision Difficulty 257 3.4% Cognitive Difficulty 329 4.3% Ambulatory Difficulty 908 11.9% Self -Care Difficulty 239 3.1% Independent Living Difficulty 482 6.3% Total, ages 65+ 3,056 40.0% TOTAL DISABILITIES, all age groups: 7,644 100% ' Represents the number of disabilities, not the number of individuals. One individual may have one or more disabilities. Source: S181o, "Disability Characteristics," City of La Quinta, 2009-2011 American Community Survey 3-Year Estimates. Disabilities may impair employment opportunities, resulting in limited or fixed incomes. According to ACS, 844 disabled individuals in the labor force have incomes below the poverty level. These households HOUSING II-75 may face significant challenges to affording adequate housing, transportation, and health care. Persons with Developmental Disabilities Per Senate Bill No. 812, the Housing Element must include analysis of the special housing needs of individuals with developmental disabilities. A developmental disability is defined by Section 4512 of the Welfare and Institutions Code as "a disability that originates before an individual becomes 18 years old, continues or can be expected to continue indefinitely, and constitutes a substantial disability for that individual." This includes mental retardation, cerebral palsy, epilepsy, and autism, as well as disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, but does not include other handicapping conditions that are solely physical in nature. The California Department of Developmental Services (DDS) implements a statewide system of community -based services for people with developmental disabilities and their families. DDS contracts with the Inland Regional Center in Riverside to provide and coordinate local services in Riverside County, including the City of La Quinta. The table below quantifies the developmentally disabled population in La Quinta that is being served by the Inland Regional Center. Table II-27 City of La Quinta Developmentally Disabled Population Served by Inland Regional Center Age Group # of Individuals 0-z 8 3-1 5 39 16-zz 30 z3-56 26 57+ 4 Total: to7 Includes individuals in zip codes 92253• Source: Inland Regional Center, November 19, 2012. Housing needs for individuals with developmentally disabilities can range from traditional independent living environments, to supervised group quarters, to institutions where medical care and other services are provided onsite. Important housing considerations for this group include proximity to public transportation, accessibility of the home HOUSING II-76 and surroundings, access to medical and other public services, and affordability. Facilities and services in the Coachella Valley that assist persons with developmental and physical disabilities include: o La Quinta Senior Center - La Quinta: Services include Meals on Wheels, an outreach program and volunteer home care services for homebound seniors, and coordination of Dial -a -Ride transportation services. o Angel View Crippled Children's Foundation, based in Desert Hot Springs, operates 19 six -bed group homes for children and young adults with developmental and physical disabilities. The homes provide 24-hour nursing and/or attendant care and can accommodate loo+ individuals at a time. There are 17 homes in the Coachella Valley, including 12 in Desert Hot Springs, 4 in Palm Springs, and 1 in Thousand Palms. o The Inland Regional Center oversees the management of 8 single-family residential facilities in the Coachella Valley. Each facility houses 4-6 individuals and provides 24/7 staff supervision. Residents are placed by Inland Regional Center and must meet State -mandated qualifications. o Canyon Springs in Cathedral City is a State developmental center operated by DDS. It provides residential services, treatment, and job training for up to 63 adults with developmental disabilities, some of which also have mental health needs. Referrals for admission are made by the Inland Regional Center. In November 2012, it served 55 individuals. o Community Counseling and Consultation Center, Inc./Desert AIDS Project - Palm Springs: Dedicated to providing support, care, and treatment to people with AIDS and related illnesses and education to the general community. The Desert AIDS project serves the psychological needs of AIDS clients, provides case management, anonymous HIV testing, legal services, a program of protection and prevention, and referral and recreational services. o Valley Resource Center - Indio: A nonprofit organization providing services to developmentally disabled adults. They administer supportive employment programs and other workshops to assist daily living. o Cathedral City - HIV/AIDS Facility: A 25-bed permanent residence facility for persons with HIV/AIDS. HOUSING 11-77 o FISH of Lower Coachella Valley - Indio: Provides transportation and emergency food, and operates a "good neighbor" program. o DesertArc - Palm Desert: A comprehensive service delivery agency for the developmentally disabled community; it provides programs to develop or enhance self-help skills, life enrichment skills, and prevocational and vocational skills. o Braille Institute - Rancho Mirage: A nonprofit school providing daytime classes for the legally blind, with a 50-mile service radius. Provides other services for the visually impaired. o Shelter Plus Care Tenant Based Rental Assistance - Indio: A permanent residence facility in Indio with 17 beds, serving needs of homeless persons with disabilities and the mentally ill. Large Family Households The 2009-2011 ACS reported 1,319 households in the City of La Quinta with five or more persons, which constitutes 9.o percent of all households. This represents a to percent increase from the year 2000 (1,196 households). Large -family households generally require larger dwellings with more bedrooms to meet their housing needs. But these households often experience difficulty securing adequate housing suitable for their expanded needs due to income limitations and/or lack of adequate housing stock. Difficulties in securing housing large enough to accommodate all members of a household are heightened for renters, because multifamily rental units are typically smaller than single-family units. Table II-28 presents tenure of housing units by number of persons in the unit in based on 2009-2011 ACS data. The table shows that large households are equally comprised (50/50) of owner occupied and renter occupied households (665 owner occupied, 654 renter occupied). Large owner -occupied units comprise 6 percent of all owner -occupied housing, and large renter -occupied units comprise 16 percent of all renter -occupied units. This increase is small when compared to the 56% increase in total population in the City for the same period. HOUSING II-78 Table II-28 Large Households by Tenure Number of Persons in Household Owner Occupied Renter Occupied Total Five 429 258 687 Six 182 266 448 Seven or More 54 130 184 Total 665 654 1319 Source: U.S. Census. 2009-2011 American Community Survey. Multifamily housing rental stock consists primarily of one-, two -and three -bedroom units. Single family development in the Cove is made up largely of units with three bedrooms, although four -bedroom units are also present in limited supply. Citywide single-family construction activity has created a supply of housing for large families not available in multifamily housing, although prices for larger units tend to be affordable only to moderate and above moderate income households. Single -Parent Households Single parent heads of household constitute a group with serious housing concerns. In general, families with single parent heads of household may experience a higher incidence of poverty than other household configurations. In particular, female -headed households can experience lower incomes, higher living expenses, higher poverty rates, and low rates of homeownership. Finding adequate and affordable housing is a high priority. Special considerations for this population include proximity to schools, childcare, employment, and health care. In 2010 La Quinta was home to 2,026 single -parent households, of which 1,461 were female -headed. 16.1 percent of the City's female - headed families lived in poverty, compared to 5 percent of married couple families. Many single parents do not have the resources to enter the housing market as a home owner. Although the incidence of single -parent households with children below the poverty level is low in the City, less than 2 percent of single -parent households are impoverished, addressing the housing needs for single parents may require innovative housing solutions. Strategies need to be considered to provide more housing opportunities to these households, such as new multifamily housing, mixed -use units, and subsidized single-family housing. HOUSING II-79 Farm Workers Based on an analysis of farm labor and the diminishing amount of farmland in the City of La Quinta and surrounding rural areas, the need for farm worker housing has declined. Based on 2009-2011 ACS data, there were 74 persons employed in "agriculture, forestry, fishing and hunting, and mining" in the City, which constitutes less than 1% of the City's civilian employed population 16 years and overt. It is probable that a number of occupations classified as agricultural are related to nursery operations or landscape maintenance. Responsibility for providing housing for farm workers originally lay with the growers that employed the workers. This practice was discontinued, however, due to high costs for liability insurance and maintenance. Low income groups often need housing near work. For farm workers, this means that housing is needed in rural, agricultural areas rather than urban areas. In the Coachella Valley, the principal housing options for migrant and local seasonal farm workers are family -owned homes, private rental houses, second units, apartments, and mobile homes. Farm worker housing does not appear to be a significant need in La Quinta. Extremely Low Income Households Extremely low income households are households earning less than 30 percent of the HUD Area Median Family Income (HAMFI). These households often face significant financial challenges to affording adequate housing and therefore are considered a subpopulation with special housing needs. According to 2005-2009 CHAS data there are 1,100 extremely low income households in La Quinta, consisting of 485 renter households and 615 owner households. Accordingly, the City's projected need for very low income households is 91 households (25 percent of its 20o6- 2014 RH NA total housing allocation). Extremely low income households are sensitive to unexpected changes in income and expenditures, so overpayment for housing could result in an inability to meet other important or emergency needs. Many of the City's existing and proposed very low income rental projects provide housing affordable to extremely low income individuals, couples, and families with children. Extremely low income Z U.S. Census, 2009-2011 American Community Survey. HOUSING II-8o households are also eligible to receive rental assistance in La Quinta through the County of Riverside Housing Authority's Section 8 voucher program. Small extremely low income households may also find an affordable housing option in Single Room Occupancy (SRO) hotels, second units, and guest houses. A survey of rental opportunities in 2oo8 showed that second units in La Quinta are affordable to lower income households. Another type of second unit, a guest house/employee quarters is permitted in La Quinta and is to be rented out free -of -charge, per the Municipal Code. The intent is for homeowners to provide on -site living quarters for their staff and guests. This type of second unit is mandated to be affordable to extremely low income households. Second units and guest houses/employee quarters may be important resources for seniors on a fixed -income, single -parents, disabled persons, college students, and low -wage earning workers. Homeless Persons The Riverside County Department of Public Social Services completed a homeless count in 2011 for all cities and some unincorporated areas in the County. That effort identified 3 homeless persons in La Quinta, all 3 bring "unsheltered" individuals (living on streets or in vehicles, encampments, storage structures, or other places unfit for human habitation) and o "sheltered" individuals (in emergency shelters or transitional housing).3 This estimate represents less than o.00l% of the City's total 2010 Census population of 37,467 people. The actual number of homeless may be higher given that many individuals, particularly women and children, remain hidden for safety or stay in locations where they cannot be seen. This represents an increase of 89% over the County's 2009 count (38 individuals). This information indicates that there is not a need for a shelter beds. However, homeless persons and families are often transient and may find themselves in need of shelter in any given jurisdiction in the county. If a person or family finds themselves homeless they may go to regional facilities provided by the county, City of Indio, or City of Palm Springs for assistance. The available homeless facilities in the Coachella Valley are listed in Table II-29. While the City has supported the CVAG Homeless Committee efforts, the City did not participate in funding Roy's Desert Resource Center ("Roy's"), which is in the west end of the Coachella Valley. Instead, in October 2010, the City committed funding toward a new facility for the 3 Figure 3, "Homeless County & Survey Comprehensive Report," prepared for Riverside County Department of Public Social Services, 2011. HOUSING II-81 Coachella Valley Rescue Mission, which currently shelters 150+ men, women and children and is located in Indio. The City Council also committed funding to Martha's Village and Kitchen toward construction of their new facility. The City believes these facilities to be a more logical resource for La Quinta's homeless, due to proximity to La Quinta. One use that may potentially provide housing for those in need of shelter is SRO hotels. SRO hotels, as defined in the municipal code, are residential facilities that are rented on a weekly or longer basis that may or may not have private bathroom and kitchen facilities. SRO hotels are conditionally permitted in Regional Commercial zoned districts. HOUSING II-82 Table II-29 Coachella Valley Homeless Shelter Resources 2007 Clientele Type of or Needs Number Shelter Name Shelter City Served of Beds' Coachella Valley Services Coachella and Overnight Shelter (CV- Emergency General 25 Valley SOS) Men, Coachella Valley Rescue Emergency Indio Women, 8o Mission and children Palm Nightingale Manor Emergency Families 50 Springs Undisclosed Shelter from the Storm Emergency — Coachella Domestic 6o Violence Valley Emer 100 Martha's Village and Kitchen Indio General emer/120 &Trans trans Substance ABC Recovery Center Transitional Indio Abuse 40 Palm Desert Horizon Transitional General 32 Springs Scattered Episcopal Community Transitional Site — HIV/AIDS 34 Services Coachella Valley Undisclosed Domestic Shelter From The Storm Transitional — Coachella Violence 39 Valley Victims Roy's Desert Resource Palm Permanent General go Center Springs Undisclosed Disabled Desert Vista Permanent Permanent — Coachella Men and 40 Supportive Housing Valley Women Cathedral Casa San Miguel Permanent HIV/AIDS 25 City Persons Scattered With Episcopal Community Site — Disabilities Services Permanent Coachella and 40 Valley Chronically Homeless Persons With Shelter Plus Care TBRA Permanent Indio Disabilities/ 23 Mentally III Source: Desert SOS HOUSING 11-83 Regional Housing Needs State Housing Law requires that SCAG identify future housing needs in each jurisdiction. To meet this mandate, SCAG develops the RHNA, which establishes both the projected need for housing and the fair share distribution of the projected need to its member jurisdictions. The RHNA calculates the projected new construction need necessary to accommodate the anticipated population through October 2021. State housing law requires that cities and counties demonstrate adequate residential sites that could accommodate development of housing in order to satisfy future housing need. The 2014 RHNA proposes that La Quinta construct 364 new housing units to accommodate housing needs for all income groups during the planning period January 2014 through October 2021. These units are distributed by income category as illustrated in Table II-30. According to SCAG, 91 new units are needed to accommodate very low income households, 61 new units to accommodate low income households, and 66 new units to meet the needs of moderate income households. Approximately 40 percent of the new units (146) cited by the RHNA to accommodate growth will be for above moderate income households, provided through market -rate housing. The City's 364-unit future housing need is a 1.5 percent increase in the number of existing households (23,489 in 201o), and approximately 2.3 percent of the Coachella Valley's future housing need. Table II-30 2014-2021 Regional Housing Needs Assessment Household Income Levels Income as a Percent of County Median RHNA Allocation Percent Very Low Less than 5o% 91 25.0 Low 51%-8o% 61 17.1 Moderate 81%-120% 66 18.2 Above -Moderate Over 120% 146 39.7 Total 1 364 t00% Source: Regional Housing Needs Assessment for Southern California, September 2012, prepared by SCAG. 1 Total number of units and percentage are affected by rounding error. HOUSING II-84 HOUSING CONSTRAINTS Constraints to the provision of adequate and affordable housing are posed by both governmental and nongovernmental factors. These factors may result in housing that is not affordable to lower and moderate income households or may render residential construction economically infeasible. Constraints to housing production significantly impact households with lower incomes and special housing needs. To accurately assess the housing environment in the City of La Quinta, close consideration needs to be given to a series of constraints; the housing market, infrastructure, and environmental and governmental factors that impact the cost of housing. Nongovernmental Constraints Although housing costs in the Coachella Valley region are, on average, below other metropolitan areas in Southern California, the cost of renting or purchasing adequate housing in La Quinta continues to be influenced by a number of market factors. Costs associated with labor, raw land, materials, and financing influence the availability of affordable housing. Land and Construction Costs Land costs include the costs of raw land, site improvements, and all costs associated with obtaining government approvals. Factors affecting the costs of land include overall availability within a community, environmental site conditions, public service and infrastructure availability, aesthetic considerations, and parcel size. The cost of land is an important component in determining the cost of housing development. Land in the Coachella Valley has been and remains relatively affordable compared to other Southern California markets. In 2013 residential land acquisitions show that vacant residential land outside of the Village area costs between $8o,000 and $125,000 per acre. Village Commercial land, which has the potential for up to 16 dwelling units per acre, sells for up to $590,000 per acre, based on current listings and sales in the area. Construction costs can constitute up to 50 percent of the cost of a single-family detached home. Labor costs are usually two to three times the cost of materials, and thus make up 17 to 20 percent of the total cost of a new home. Labor costs are based on a number of factors, including housing demand, the number of contractors in the area, and union status of workers. However, state law requires the payment of prevailing wages for most private projects built under an HOUSING II-85 agreement with a public agency providing assistance to the project, except for certain types of affordable housing. All cities are affected by these laws. The construction cost of housing may be considered a constraint to affordable housing in the La Quinta area. The City cannot directly control construction costs. Hence, increases in these costs amplify the need for subsidies to achieve affordability in residential units. Through density bonus provisions the City provides incentives and relief to the development community in exchange for the inclusion of affordable housing into a project. Financing e Interest rates impact both the purchase price of the unit and the ability to purchase a home. Interest rates are determined by national policies and economic market conditions and local government has no impact on these rates. Historical market trends reveal that when interest rates are high, a potential homeowner's ability to secure a loan decreases. Conversely, when rates are low, homeownership becomes more accessible to more families. The La Quinta market has demonstrated that when interest rates are low, the majority of housing demand focuses on single-family homes. When interest rates are high (in excess of about 12 percent) for any length of time, only a small percentage of new home buyers can qualify for monthly mortgage payments on the average market rate single- family home. At this point, demand shifts to lower price units, usually multifamily, and construction trends follow. First-time home buyers are the group most impacted by financing requirements. The currently low mortgage rates (at or below 4 percent), facilitate first time home buying. Typically, conventional home loans will require 5 to zo percent of the sale price as a down payment, which is one of the largest constraints to first-time home buyers. When interest rates are low, they are not generally a serious constraint to affordable housing. Further, lower interest rates help support home purchases by low and moderate income households, who may not be able to qualify at higher rates. Governmental Constraints The City has traditionally exercised authority in the areas of land use controls, site improvement requirements, building codes, fees, and other regulatory programs. HOUSING II-86 General Plan Land Use Designations The 2012 Land Use Element provides a consolidation of several land use designations used in the previous 2002 General Plan. Residential land use designations, which were previously defined in in five categories, have been reduced to two. The two residential designations include Low Density Residential and Medium/High Density Residential. The densities of individual parcels are further refined in the Zoning Ordinance. Under Program LU-7.1.a (Policy LU-7.1), the City has established a mixed -use overlay that allows for the construction of housing to be integrated in various ways such as above office space or commercial uses. The overlay is applied to all commercial zones. The mixed use overlay works together with the affordable housing overlay to raise densities to 24 units per acre (not including density bonus). The density ranges allowed for each residential district used to calculate housing at build out are listed in Table II-31. Table II-31 Residential General Plan and ZoninLy Districts General Plan Zoning Density Purpose Very Low Density Up to z units One -to two-story single-family Residential (RVL) per acre detached homes on large lots; at Low Density the southeastern boundary of the City. Low Density Up to 4 units Single-family attached and Residential (RL) per acre detached development, both in a country club setting and in standard subdivisions. Agriculture/ Applied to Allows continuation of Equestrian underlying agricultural activities in Vista Residential Overlay residential Santa Rosa area. (AVER) designations Medium Density Up to 8 units One -to two-story single-family Residential (RM) per acre detached and attached homes on Cove Residential medium to small sized lots; (RC) clustered small dwellings, such as Medium High one to two-story single-family Density condominiums, townhomes, or apartment and duplexes. Medium High Up to iZ One -to two-story, single-family Density Residential units per detached homes on small lots; (RMH) acre one -to two-story single-family attached homes; one -and two- story townhomes, condominiums and multifamily dwellings. Mobile home parks may be allowed with the approval of a Conditional Use Permit. HOUSING 11-87 Table II-31 Residential General Plan and ZoninLr Districts General Plan Zoning Density Purpose High Density Up to 24 One -to two-story single-family Residential (RH) units per attached homes; one -to three - acre for story townhomes and multifamily affordable dwellings. Duplex and multiplex housing sites development is the most common. Mobile home parks or subdivisions with common area amenities and open space may also be allowed subject to a Conditional Use Permit. General Regional Up to 24 High density residential uses are Commercial Commercial (CR) units per permitted. Commercial Park acre for (CP) affordable Community housing Commercial (CC) Neighborhood Commercial (CN) Office Commercial (CO) Village Commercial Village Commercial Up to 24 Medium High and High Density (VC) units per residential land uses are acre for appropriate. Live/work housing is affordable permitted. housing Tourist Commercial Tourist Commercial Up to 24 Single and multifamily residential (CT) units per and condominium development is acre for permitted. affordable housing Source: City of La Quinta General Plan and Municipal Code 2012 Municipal Code The residential zone portions of the Municipal Code impact housing affordability in several ways. The Zoning Code regulates such features as building height and density, lot area, setbacks, minimum unit and room size, and open space requirements for each zoning district. Development standards for the six residential zoning classifications and two overlay districts are provided in Table II-32. Residential land use regulations allow for single-family detached development by right at allowable densities between o and 12 units per acre. Single-family detached housing at higher densities may be achieved with a Specific Plan for individual projects as long as overall density is not exceeded. Single-family attached and multifamily development is permitted by right at densities between 8 and 24 units HOUSING II-88 per acre and these types of residential uses are also permitted in lower density zones under the provisions of a specific plan. A variety of residential development is possible in the City, ranging in average density from less than two units per acre for lands designated Low Density to 24 units per acre for affordable housing in the High Density and all Commercial categories. If a density bonus is utilized, greater residential densities may be achieved in any zone. Table II-33 identifies the list of permitted uses by residential district. Lower Density Residential Districts The RVL and RL zones provide for low density residential uses with densities consistent with the General Plan LDR designation (up to four units per acre). Single-family development in lower density zones is allowed through a building permit, following administrative review for consistency with the Municipal Code and state requirements. Developments requiring a tract map to establish new lots of record are reviewed by various City departments and adopted through Planning Commission and City Council public hearings. Typical conditions of approval relate to environmental quality such as erosion control, storm drainage, and access. Higher density uses such as patio homes, duplexes, attached single- family dwellings, townhomes, and condominiums may be permitted in RVL and RL zones when part of a specific plan, as long as the overall density of the specific plan project does not exceed that permitted by the underlying zone. The specific plan is reviewed by various City departments and a determination is made by the City Council at a regularly scheduled public hearing. Specific plans are typically adopted by resolution and are common throughout the City. The Zoning Ordinance permits guest houses without a Minor Use Permit. Guest houses are affordable to all income levels because they are provided free -of -charge. Another form of accessory housing, second units, are permitted by right in the RVL and RL zones. Multiple second units on one site are conditionally permitted. Development in the Cove, under RC zoning, allows for development and preservation of the character of the Cove, with one story single- family detached dwellings. The Zoning Code also establishes a minimum 7,2oo-square-foot lot size, which may require lot consolidation in some circumstances. However, as the majority of the Cove was originally subdivided into 5,000 square foot lots, existing lots HOUSING II-8g less than 7,200 square feet are considered buildable nonconforming lots. Medium and High Density Residential Districts The RM, RMH, and RH zones allow an upper range of development density consistent with the General Plan Medium/High Density Residential designation. Minimum side yards and setbacks are required where a project abuts an exterior boundary or a public street. However, lot coverage, width, and setbacks within a project are variable to allow for clustering or creative lot configurations, as well as creating space for desired recreational and open space amenities. Multifamily development is allowed in all three zones with a Site Development Permit, via design review approved at regularly scheduled Planning Commission public hearings. The City's Zoning Code allows for innovation in design standards and densities as long as the overall density and dwelling unit capacity is not exceeded. Residential compatibility standards have been incorporated into the Zoning Code, which governs conditions where higher or lower density uses are proposed than the General Plan designation. Residential Uses in Nonresidential Districts There are development opportunities for residential uses in several of La Quinta's nonresidential zones (Table II-34). Single-family residential uses are permitted under a specific plan in the Regional Commercial (CR) zone. Multifamily housing is permitted in most commercial zones. Residential uses at densities consistent with the High Density residential designations are permitted in the Village Commercial District subject to the granting of a Village Use Permit, which is required for all development in the Village area. A Village Use Permit is a Site Development Permit specific to the Village area, and allows for the review of the project for compliance with the Village at La Quinta Design Guidelines in addition to the Zoning Ordinance, Municipal Code, and state requirements. Village Use Permits are approved at regularly scheduled Planning Commission public hearings, just like a Site Development Permit. The development standards in the Village are more permissive than for typical single- and multifamily housing projects and are not considered a constraint to housing development. Projects can be developed in the Village Commercial District that are loo percent residential in use, as there is no requirement that a project be a mix of residential and nonresidential uses. Development standards specific to the Village currently include a 35400t maximum height. Setbacks along front, side, and rear property lines are not HOUSING required. Additionally, the VC zone does not require open space to be set aside for each residential unit. Residential floors generally range from 10-12 feet in height. If a project contains solely residential uses, the 35-foot height limit does not constrain development. If a project incorporates commercial and residential uses, the commercial uses will be located on the first floor and generally seek a floor height of 15-18 feet. Under the current height standard, a mixed - use project could construct three stories of development. For example, if a project consisted of two levels of residential development, a project built at 24 units per acre would only need 18,000 square feet of building area per floor; alternatively, the units could increase in size. Variations in parking requirements, including shared parking applications, may be approved. The City, in the 2oo6-2013 planning cycle, increased density to 24 units per acre, and height limits in commercial zones to 40 feet for affordable housing projects. Although the increased height limit would not be required to achieve 24 units per acre, it would provide greater flexibility in building envelopes and commercial and residential floor plates. Residential development in the commercial zones must conform to the Affordable Housing Overlay and Mixed Use development standards. These zones do not have any performance requirements that mandate commercial or other nonresidential development. Expanding opportunities for vertically mixed -use development increases the City's capacity for new attached. Attached housing types, which can generally be more affordable and lower maintenance than single-family detached homes, may provide much needed new housing opportunities for La Quinta's single - parents, workforce, and seniors. Boarding houses, senior group housing, and SRO hotels are conditionally permitted in the CR zone. Emergency shelters are permitted in all commercial zones. The City does not regulate supportive or transitional housing which occurs in single family homes and includes 6 or fewer residents. Transitional and supportive shelters for 7 or more that include social or medical services are permitted in residential zones with the same permitting requirements as similar uses in those zones. Transitional and supportive shelters that only provide housing are permitted as a residential use and only subject to those restrictions that apply to other residential uses of the same type in the same zone. HOUSING Table II-32 2013 Residential Development Standards Development Standard RVL RL RC RM RMH RH RSP RR Min. Lot Size for Single -Family 20,000 7,200 7,200 3,600 2,000 [A] [C] Dwelling Min. Project Size for N/A N/A N/A N/A 20,00 20,00 [A] N/A Multifamily Projects o 0 Min. Lot Frontage for Single -Family 100 6o 6o 50 40 N/A [A] [C] Dwellings (ft) Min. Frontage for N/A N/A N/A N/A 100 100 [A] [C] Multifamily Projects Max. Structure Height (fty 28 28 17 28 28 40 50 35 Max. No. of Stories z z 1 z z 3 4 z Min. Front Yard 30 zo zo zo zo zo [A] [D] Setback (ft) Min. Garage Setback N/A 20 20 20 zo 20 [A] [D] Min. Interior/Exterior Side Yard Setback 10/20 5/10 5/10 5/10 5/10 10/15 [A] [D] (ft) Min. Rear Yard 30 20/10 10 15 15 zo [A] [D] Setback (ft) Max. Lot Coverage 40 50 6o 6o 6o 6o [A] [C] (% of net lot area) Min. Livable Area 1,400 MF: Excluding Garage 2,500 1,400 1,400 1,400 (MF: [A] [C] (sf) 1 750) 750 Min. Common Open N/A N/A N/A 30% 30% 30% [A] [C] Area Min. Perimeter Landscape Setbacks 10/20 10/20 N/A 10/20 10/20 10/20 [B] [C] (ft) Source: City of La Quinta Municipal Code 2013 Within 150 feet of any General Plan designated Image Corridor is 17 feet in the RC zone and zz feet in other zones. [A] Subject to a specific plan. [B] See Section 9.90.040 of the Municipal Code. [C] Dependent upon use and density. [D] Setback criteria shall be determined based on the existing site conditions and surroundings, in conjunction with the guidelines and the proposed project characteristics. HOUSING II-92 Table II-33 2013 Permitted Residential Uses by Residential Zoning District Residential Zoning District Very Medium Low Low Cove Medium High High RVL RL RC RM RMH RH Land Use Conventional Housing Single -Family Detached P P P P P S Duplex S S S S P P Single -Family Attached S S X S P P Condominium Multifamily S S X S P P Apartment X X X P P P Multifamily Mobile Home Park C C C C C C Mobile Home Subdivision and P P P P P X Manufactured Home Resort Residential C C X C C C Special Needs Housing Congregate Living P P P P P X Facility (<6)' Congregate Care C C C C C C Facility z Emergency Shelter X X X X X X Guest House A A A X X X Residential Care Facility (>_6) 5 P P P P P P Second Unit A A A A A A Second Units (multiple) 6 C C X X X X Senior Citizen P P P P P P Residence (<6) Senior Group X X X X C C Housing (7+) 7 Single Room $ Occupancy X X X X X X Supportive and Transitional Shelter X X X C C C Source: City of La Quinta Municipal Code 2008 P = Principal use; C = Conditional use permit; M = Minor use permit; S= Specific plan; A = Accessory use; X - Prohibited use Single-family residential facility that is licensed by the state to provide living and treatment facilities on a monthly or longer basis for six or fewer developmentally disabled persons or six or fewer persons undergoing treatment for alcohol or drug abuse and that is permitted in single-family residences by operation of state law. HOUSING 11-93 A facility providing care on a monthly basis or longer that is the primary residence of the people it serves. It provides services to the residents such as dining, housekeeping, security, medical, transportation and recreation. s A residential facility licensed by the state to provide living and treatment facilities on a monthly or longer basis for six or fewer of the following: wards of the juvenile court, elderly persons, mentally disordered persons, handicapped persons or dependent and neglected children. Such a facility is permitted in all types of residences by operation of state law. e More than one guest house or second residential unit may be permitted on a lot with approval of a CUP in the Very Low/Low Density zones. A residential development developed or substantially renovated for and occupied by seven or more senior citizens (includes senior citizen hotels, retirement hotels and senior citizen apartments). s A residential facility that is rented on a weekly or longer basis and provides living and sleeping facilities for one or two persons per unit. Each unit contains a toilet and sink. Shower, kitchen, and laundry facilities may be shared. Table II-34 2013 Permitted Residential Uses by Nonresidential Zoning District Zoning District Major Regional Commercial Community Neighbor -hood Tourist Office Community Village Land Use Commercial Park Commercial Commercial Commercial Commercial Facilities Commercial CR CP CC CN CT CO MC VC Conventional Housing Single -Family Residential S X X X X X X V Multifamily Housing AHO AHO AHO AHO AHO AHO AHO AHO Resort Residential S X C X C X X X RV Rental/ Ownership Parks C X C X C X X X Special Needs Housing Emergency Shelter P P P P P P P P Rooming/ Boarding Housing C X X X X X X X Senior Group Housin 3 C X X X X X X X Single Room Occupancy Hotel 4 C X X X X X X X Transitional Shelter C X X X X X C X Source: City of La Quinta Municipal Code 2012 P = Principal use; C = Conditional use permit; M = Minor use permit; S= Specific plan; V = Village Use Permit; A = Accessory use; X = Prohibited use Residential over commercial mixed -use development will be permitted by right of zone in the CR, CP, CC, CN, CT, and CO zones (Program 1.5). Residential over retail i� already permitted in the VC zone with a Village Use Permit. Multifamily housing includes duplexes, apartments, and other types of housing for multiple families. s A residential development that is developed or substantially renovated for and occupied by seven or more senior citizens (includes senior citizen hotels, retirement hotels and senior citizen apartments). A residential facility that is rented on a weekly or longer basis and provides living and sleeping facilities for one or two persons per unit. Each unit contains a toilet anc sink. Shower, kitchen, and laundry facilities may be shared. HOUSING • I Density Bonus California law (Government Code Sec. 65915 et seq.) allows for an increase in the density of a residential development when a developer donates land or constructs affordable housing as a part of a project. The City updated its zoning code to reflect amendments to density bonus law during the 20o6-2013 planning period. A density bonus of zo percent above the maximum permitted density may be granted if a project includes 5 percent of the units at rates affordable to very low income households or to percent of the units at rates affordable to low income households. If to percent of the total units are affordable to moderate income households in a common interest development, then the project is eligible to receive a 5 percent density bonus. In addition, a sliding scale requires additional density bonuses above the base zo percent. The maximum density bonus is 35 percent over the maximum allowable density under the applicable zoning and General Plan designation. With a density bonus, allowable residential densities range from 2.7 units per acre in the RVL zone to 32 units per acre in the high density and mixed -use zones and specific plans. Projects that are restricted to senior residents are also eligible to a density bonus of zo percent without any income -restricted units. The density bonus is not required to exceed zo percent and is not subject to the sliding scale mentioned above unless a minimum number of income -restricted units are included. Second Unit and Guest House/Employee Quarter Requirements Second units are independent living quarters on existing home lots that typically provide affordable rental opportunities for lower and moderate income households, including seniors, disabled persons, single parents, domestic employees, and extended family members. Second units create additional housing opportunities on already developed or developing parcels. Second units are often referred to as "casitas" throughout the Coachella Valley. To facilitate affordable housing development second units are permitted in all residential -only zones. The City revised its Second Unit Ordinance in zoo7 to remove a requirement for a minor use permit and instead permits second units by right as an accessory structure. Additionally, the City now permits the construction of more than one second unit with the approval of a conditional use permit in the Very Low and Low Density Residential zones. HOUSING II-95 Conditions on the second unit (or units) require that no interest in the second residential unit may be sold separately from the remainder of the property, though the unit may be rented; that the lot contain an existing single-family dwelling that conforms to the minimum lot size requirement; that the second unit is no larger than 1,200 square feet or 30 percent of the primary home; and must have its own off-street parking space. More than half of the single-family detached homes approved in La Quinta in recent years include a second unit or guest house. Guest houses are detached or attached units with sleeping and sanitary facilities, but no cooking facilities. Per Municipal Code Section 9.6o.loo, no rent may be charged for residency or stay in a guest house. The purpose of guest houses is to provide free on -site housing for relatives, guests and domestic employees. This type of second unit is particularly important to provide housing opportunities for the City's extremely low income workforce. Similar to a second unit, a guest house may not exceed 3o percent of the square footage of the primary structure and must conform to lot coverage requirements. The City has also amended its zoning code to remove the requirement for a minor use permit, and to allow cooking facilities in guest houses, similar to second units. Manufactured Housing Requirements Manufactured housing and mobile homes are considered housing alternatives, especially for serving the needs of lower -income households. Manufactured homes and mobile home subdivisions are a permitted use in any residential -only zone except for High Density Residential. Manufactured housing on a single-family lot must obtain a minor use permit by approval of the Planning Commission to ensure that it is consistent with the development standards in single-family zones. Parking Reauirements Parking requirements in the City of La Quinta, shown in Table II-35, are typical for a city of its size with resort oriented characteristics. Additionally, the parking requirements for special needs uses are relatively minimal and facilitate the construction of such uses. Reductions required parking spaces is often a concession granted to affordable housing developers through the City's density bonus provisions. Overall, the parking requirements do not directly constrain the development of housing. HOUSING II-g6 The City is currently updating the Zoning Ordinance to allow the reduction or modification of parking requirements associated with multi -family development. Table II-35 ParkinL Reauirements for Residential Uses Land Use Minimum Off -Street Guest Spaces Parking Spaces Single -Family Units Single -Family Detached, z spaces per unit in a garage 0.5 guest space per unit if Single -Family Attached Tandem garages allowed in no on -street parking is and Duplex RC zone available Townhome z spaces per unit in a garage o.8 guest space per unit Mobile Home Park z covered spaces per unit o.8 guest space per unit (tandem permitted) Multifamily Units Studio 1 covered space per unit 0.5 guest space per unit One Bedroom 1.2 covered spaces per unit 0.5 guest space per unit Two Bedrooms z covered spaces per unit 0.5 guest space per unit Three or More Bedrooms 3 covered spaces per unit, 0.5 guest space per unit Plus 0.5 covered space per each bedroom over three Special Needs Guest House/Employee 1 covered or uncovered Quarters space. This space shall not be tandem. Second Unit 1 covered or uncovered space. This space shall not be tandem. Senior Group Housing, 5 covered spaces per unit 0.5 guest space per unit Senior Citizen Hotel, and Congregate Care Facility Single Room Occupancy 1 space per sleeping room Hotel Source: City of La Quinta Municipal Code 2oo8 Subdivision Improvement Requirements The City maintains subdivision improvement requirements that contribute to the cost of housing. In many cases, a developer may be required to provide any or all of the required improvements within a subdivision or a single residential project. Although the provision of these improvements or actions required to meet subdivision requirements may cumulatively add costs to the provision of housing, they are not considered a deterrent, as they are required throughout California with public safety as the underlying factor. Pertinent improvements include: HOUSING 11-97 • Full -width street improvements for all internal subdivision streets and alleys shall be installed, • Where a subdivision borders a public street, the developer shall provide half -width right-of-way improvements, plus one additional travel lane on the opposite side of the centerline if it does not already exist, • Additional rights -of -way or easements shall be provided to accommodate roadway slopes, multi -purpose paths, and other required facilities, • Minimum landscape setback widths shall be 20 feet from primary arterial streets, to feet from secondary arterial streets, and to feet from collector streets. • Local streets shall be a minimum of 6o feet in width with 36-40 feet curb to curb, and 10-12 feet for landscape parkway and cul- de-sacs shall be a minimum width of 50 feet with 32-36 feet curb to curb and 7-9 feet for landscape parkway, • Private streets are limited to 36 feet in width when parking is double loaded, 32 feet when single loaded, • Sidewalks are required to be provided on both sides of the street within public rights -of -way of all General Plan designated arterial and collector streets; for local streets in residential areas and in areas designated rural residential overlay where densities exceed 3 du/ac, • Transit facilities such as bus turnouts and covered bus shelters and benches are required if a bus stop occurs adjacent to the development site, on General Plan designated arterial and collector streets, • street width transitions; pavement elevation transitions and other incidental work deemed necessary for public safety may be required immediately adjacent to the development site, • Other improvements required to be provided by the developer may include traffic signs; channelization markings/devices; street name signs; medians; and mailbox clusters, • The developer shall provide improvements connecting the subdivision to the domestic water supply and distribution system operated by the Coachella Valley Water District, and is required to connect to an existing sewer collection system. Local Processing and Permit Procedures The cost of holding land by a developer during the evaluation and review process is frequently cited by builders as a contributing factor to the high cost of housing. The California Government Code establishes permitted time periods for local agencies to review and act upon private development proposals. Typical local development HOUSING II-g8 application processing times identified in Table 11-36 reflect both single - and multifamily uses. Multifamily projects generally have shorter processing times than single-family tract maps because Site Development Permits are approved at Planning Commission, while tract maps have to go to City Council for review. State -imposed time restrictions are identified in Table II-37. Table II-36 Local Development Processing Times Item Typical Length of Time From Submittal to Public Hearing Minor Use Permit i-2 weeks Village Use Permit 9-12 weeks Site Development Permit 8-10 weeks Conditional Use Permit 9-12 weeks Tentative Tract Map 10-12 weeks Variance 8-io weeks Zoning Amendments or Zone Change 9-12 weeks General Plan Amendment 12-i6 weeks Specific Plan 12-i6 weeks Environmental Documentation Runs with application Source: City of La Quinta 20o8 Table II-37 State Development Processing Time Limits Item State Maximum General Plan Amendment None Zone Change None Subdivision Action on Tentative Map 5o Days Environmental Documentation/CEQA Review of Application for Completeness 3o Days Determination of NEG DEC or EIR Requirement' 3o Days Completion of NEG DEC Requirement i05 Days Certification of Final EIR i Year Source:: City of La Quinta 2008 ' The City attempts to process the Negative Declaration so that it runs with application Site Development Permit The purpose of the site development permit process is to review detailed plans for proposed development projects to ensure that the standards of the Zoning Code, including permitted uses, development standards and supplemental regulations are satisfied. If the proposed project is part of a previously adopted Specific Plan, the review and approval of Site Development Permit application may be streamlined as called for in the Specific Plan. The site development permit process enables the Architecture and Landscape Review Committee and Planning Commission to review the site plan; architectural, lighting and HOUSING landscape plans; related development plans; and sign programs. The Architecture and Landscape Review Committee is a technical advisory group that is allowed one opportunity to make design recommendations, but they cannot establish conditions or grant approvals. The Planning Commission does not exercise discretionary review over the proposed land use; the focus on the Site Development Permit is on issues of site planning and design. A Site Development Permit may take a minimum of 6 weeks for review, but the process could take as long as almost 3 months, if unforeseen complications arise. To reduce the amount of time required for plan review, the City provides no -cost preliminary project review to give the applicant information on City requirements and project feedback prior to committing to the application process. Preliminary review can save the applicant both time and money, making the proposed development more cost effective. Minor Use Permit The only residential use requiring a MUP is manufactured housing established on a single-family lot. Most MUPs are administratively approved by Planning Department staff. On rare occasions, the project may be reviewed by the Planning Commission at a public hearing to ensure that it is consistent with the development standards in single- family zones. Conditional Use Permit A conditional use permit is required for senior group housing proposed in a CR, RMH, or RH zones, and for congregate care facilities in any residential designation. The CR zone also permits single-family residential and mixed -use office/residential with a specific plan and, multifamily uses and SRO uses with a CUP. The requirement for a CUP requires a public hearing before the Planning Commission. However, a CUP is often processed concurrently with an SDP; therefore no additional time is required for the processing of the CUP. Typical findings required to approve a CUP are consistency with the goals, objectives, and policies of the General Plan, consistency with the Zoning Code, compliance with CEQA, and certification that the proposed project is neither detrimental to the health, safety, and welfare of the public nor injurious to adjacent uses. The most common specific conditions of approval relate to mitigating environmental impacts such as erosion, storm water runoff, and traffic. These HOUSING 11-100 conditions are necessary to protect environmental integrity and public health and safety and are not considered a constraint to housing development. Discussions with affordable housing developers have consistently indicated that the City's CUP process does not inhibit the process or cost of building affordable housing. Specific Plan Specific plans are unique regulations designed to provide more flexibility than permitted through the Municipal Code. The processing of a specific plan can add 6 weeks to the project schedule. However, the additional entitlement rights, flexibility in design and use, and infrastructure negotiations obtained through the specific plan process generally outweigh the impacts of the additional time expenditure. Specific plans must be reviewed by the Planning Commission and City Council at a public hearing. In La Quinta specific plans are adopted by resolution. The required findings for approval are consistency with the goals, objectives, and policies of the General Plan; certification that the project does not create conditions that are detrimental to public health, safety, and welfare; and proof that uses are compatible with nearby uses and the property is suitable for the proposed project. The City allows the concurrent processing of applications to accelerate the process. For example, for a Specific Plan that also requires a CUP both permits would be processed at the same time so no additional review time is necessary. The City also provides for discounted application fees when multiple applications are filed concurrently. Overall, the processing periods and procedures are not considered a constraint to the production of housing by the development community. The City processes residential projects within statutory time frames. The processing period is actually expedited for projects within adopted specific plan areas, as environmental review has been conducted and standards have been imposed, e.g., exactions and payment schedules, design, etc., for the entire area and in itself does not significantly impact housing construction costs. Village Use Permit The purpose of the Village Use Permit (VUP) is to provide the City with an opportunity to review new development projects proposed in the Village Commercial (VC) zone. Any potential project applicant in the Village area has the option to file a preliminary development plan to ascertain anticipated conditions, requirements, and costs associated with a proposal. The preliminary development plan process is free of HOUSING 11-101 charge and encouraged as a means of providing clarity to the development community. All uses allowed as primary uses in the VC zone are permitted by right. The VUP is not a review of the actual use, rather it is a development review process used in the Village. Residential uses are permitted in the VC zone with a VUP. Most projects in the VC zone are infill and are exempt from CEQA and associated fees, thus streamlining the process and reducing development costs. The Village at La Quinta Design Guidelines (Guidelines) encourages the development of residential and mixed uses in the Village, and provides a greater level of flexibility for the applicant. The land use section sets forth the following general guidelines: • The Village shall include residential mixes • Residential uses shall locate above commercial uses in common buildings or may be in stand-alone multifamily buildings • Mixed use projects are not subject to any floor area ratio or lot coverage standards • Compact groupings are encouraged to promote pedestrian mobility The Guidelines provide more flexible design standards and do not contain requirements or standards that constrain the development of affordable or market rate housing. Village Use Permits are approved at regularly scheduled Planning Commission hearings. Typical findings for approval include consistency with the City's General Plan, Zoning Code, CEQA, Village at La Quinta Design Guidelines, and a determination that the proposed project will not be detrimental to public health, safety, and welfare or injurious to adjacent uses. Permitting Mixed Use Development Mixed use development can provide a lively, walkable, and convenient living and visiting experience. Mixed Use is allowed in most commercial zones in the City. The City has not determined any conditions of approval specific to mixed use development; conditions are determined on a case -by -case basis, reflecting the context and design of each project. Affordable housing developers in the area have indicated that the process in La Quinta has not posed a constraint to affordable housing projects. HOUSING 11-102 Development and Processing Fees Development fees set by the City and other regional fees, cover the costs for infrastructure, environmental protection, public services, and utilities incurred by residential development. These fees impact the cost of housing, and may therefore reduce the ability for unassisted market -rate housing to provide units affordable to low income households. In addition to City fees and assessments, developers of new dwellings will be obligated to pay Multi -Species Habitat Conservation Plan fees, Fish and Game fees, Art in Public Places fees, development impact fees (Table II-38), and other special district assessments that will impact residential projects. City fees either pay for the processing of an application or the funding of a proportional share of major facility fees associated with delivery of essential public services such as sewer, water, fire protection, stormwater drainage, and parks. Costs associated with the permitting process are a potential constraint to the development of low-income housing. Table II-39 presents an overview of City fees for an average 1,5oo-square-foot tract home with a two -car garage in a low density subdivision and an average 950- square-foot multifamily home with a two -car garage. In addition to these fees, all residential development whether in La Quinta or elsewhere in California is required to pay the State mandated school impact fee, which varies from year to year. In general, for residential development, the school impact fee is approximately $2.65 per square foot. The City has no control over this fee, and as it is charged in all cities, it cannot be considered a constraint on development in La Quinta. The City has recently overhauled its planning fee schedule, and also has joined into the regional Transportation Uniform Mitigation Fee (TUMF) program administered through CVAG. These fees and assessments correspond to and pay for the cost of processing various types of applications, as shown in Table II-40. However, the City offers a 75 percent cost reduction on fees when multiple applications are simultaneously processed, such as for a specific plan, EIR, and development agreement running concurrently on the same property. In such a case, the highest fee is charged in full, with the remaining fees charged at 75 percent discount. The City is also now tracking its applications on a time and deposit basis, as part of implementing the new fee schedule. HOUSING 11-103 While the fees charged by the City add to the cost of housing and therefore are a constraint to the provision of affordable housing, infrastructure improvements and processing must be paid. A comparison of the City's fees with other communities in the Coachella Valley indicates that the City generally charges comparable fees to other cities. Table II-38 Impact Fees Per Unit of Development Land Use Type Development Units Fee Residential (SFD)' Dwelling Unit $6,894 Residential (SFA) Z Dwelling Unit $6,681 Residential (MFA) 3 Dwelling Unit $5,030 Office/Hospital 1,000 SF $5,379 General Commercial 1,0000 KSF $6,456 Tourist Commercial Room $2,185 Golf Courses Acre $957 HOUSING I I-104 Table II-39 Development Fees for Typical Single -Family and Multifamily Homes Type of Fee Cost Per Unit I Multifamily' Single -Family' Building Fees Construction $422 $591 Plan Check (Standard Plan) $616 $818 Mechanical $69 $75 Plumbing 1 Bath = $120 2 Bath = $144 Electrical $126 $176 Strong Motion Instrumentation $5 $9 Grading $20 $20 CVWD Water/Sewer Fee $4,325 $4,325 TUMF* $1,276.8o $1,837.44 Other Fees (Location) Development Impact Fee $5,030 $6,894 SFD Multi -Species Habitat Conservation Plan 3 $521 $1,284 Fish and Game Fee (unfinished lot) Negative Declaration -flat $2,057 fee $2,052 $2,o5z Art in Public Places (Total Value) Based on project valuation charged at one quarter of 1 percent of anything over $200,000 or $20 minimum $20 $20 Quimby fees (if in -lieu of land dedication —fee payment only option for tracts of <50 lots/units) Based on per -acre FMV of land Based on per -acre FMV of land Total $13,326 $16,4o8 Source: City of La Quinta 2013 ' Calculated on a 950-square-foot unit for both 8 units per acre and 16 units per acre on a one - acre parcel. 2 Calculated on a 1,5oo-square-foot home for both single-family detached and single-family attached at 3 units per acre on a one -acre parcel. 3 $1,284/unit at o-8 DU/AC, $521/unit at 8.01-14 DU/AC, and $235/unit at >14 DU/AC *Based on trips generated per unit HOUSING I I-105 Table II-40 Planning Department Fee Schedule Item/Type Permit Base Fee General Conditional Use Permit General' Amendment $3,968 $1,859 Site Development Permit Amendment* Time Extensions* $5,577 $2,850 $1,359 Village Use Permit $5,577 Minor Use Permit* $zoo General Plan Amendment $6,149 Specific Plan $6,292 Specific Plan Amendments $2,36o Temporary Use Permit* $200 Variance $1,359 Certificate of Zoning Compliance* $572 Change of Zone $6,149 Zoning Text Amendment $6,149 Sign Permit* $200 Sign Program - When submitted after Site Development Permit approval $2,181 Land Division Parcel Map Waiver* Amendment* Revision* Time Extension* $3,432 $1,216 $2,038 $2,038 $715 Subdivision Tentative Tract Map Tentative Tract Amendment Time Extension* $5,577 $2,681 $787 Statutory Condominium Subdivision $3,861 Certificate of Compliance* 572 Other Permits and Fees Appeals* $1,573 Environmental Assessment $286 Development Agreement $1,859 Source: City of La Quinta 2013 * = Permit usually does not require CEQA review. HOUSING II-1o6 Building Codes and Enforcement The City of La Quinta has adopted the following State Codes: 2010 California Building Code, 2010 California Mechanical Code, 2010 California Plumbing Code, 2010 California Energy Code, and the 2010 California Electrical Code. In addition, the City enforces the 2010 California Code Fire Code, Residential Code, and Green Code. Starting in 2014, the City will begin enforcing the respective 2013 Codes. Overall, the Building Codes adopted by the City of La Quinta do not pose any special constraints on the production or cost of housing. The City has not made substantive amendments to the code that would adversely affect housing. The City of La Quinta enforces the Housing Code which provides minimum health and safety standards for the maintenance of the existing housing supply. These standards are intended to provide for safe and sanitary housing that is fit for human habitation. The enforcement of the Housing Code is normally handled on a complaint - response basis. The most common housing -related problem is illegal additions/garage conversions. Warnings are issued with a referral to the City and other agencies for remediation assistance. The Housing Code mandates that health and safety deficiencies be corrected in accordance with construction standards that were in effect at the time the structure was built. In cases where property owners refuse to correct deficiencies, enforcement of the Housing Code relies on civil sanctions. Constraints to the Provision of Housing for Persons with Disabilities State law, per Senate Bill 52o, requires that in addition to an analysis of special housing needs for persons with disabilities, the Housing Element must analyze potential governmental constraints to the development, improvement and maintenance of housing for persons with disabilities. Programs must be included to remove constraints to providing adequate housing for persons with disabilities. The City maintains general processes for individuals with disabilities to make requests for reasonable accommodation through the Zoning Code, the permit processing process, and building codes. The City integrated a reasonable accommodation process into its Zoning Ordinance during the last planning period. HOUSING 11-107 The updated Zoning Code does not restrict the location of group homes. Group homes (congregate care) with six or fewer persons are permitted by right in all residential zones except High Density; group homes of seven or more are permitted with a conditional use permit in all residential zones and the CR zone. Furthermore, senior group homes of six or fewer are permitted in all residential zones. Senior homes of more than six are permitted subject to a CUP in the RMH, RH, and CR zones. The Zoning Code also includes provisions for the reduction of parking requirements for affordable, senior and special needs housing, including senior and/or group homes, if a project proponent can demonstrate a reduced need for parking. The City also enforces ADA standards for the number of parking spaces required for persons with disabilities. There are no conditions or requirements imposed for group homes that would affect the development or conversion of residences to meet the needs of persons with disabilities. With the exception of the minimum age requirement established by the federal government, the conditions for senior housing in both residential and nonresidential zones do not affect the development of housing for persons with disabilities. There are no minimum distance standards between two or more special needs housing developments. The City of La Quinta has adopted the 2010 California Building Code, as well as the 2010 California Mechanical, Electrical, Energy, Fire, Residential, Green and Plumbing Codes. No amendments have been made to the codes that would diminish the ability to accommodate persons with disabilities. Starting in 2014, the City will begin enforcing the respective 2013 Codes. There are no restrictions on requests for retrofitting of homes for accessibility, such as ramps and handrails. Requests for such retrofits are handled as any other minor improvement to a home necessitating a building permit, with the exception that the design must meet all applicable standards and ADA requirements, and is reviewed at the inspection phase for conformance to construction requirements. Although requests for retrofit of existing homes have been extremely limited in the past few years, a number of homes advertised for resale in the Cove area have been retrofitted or built specifically for persons with physical disabilities and are described as such. HOUSING II-1o8 The public review process for the approval of group or senior homes is no different from any other permitted use in the applicable zone. Where a group or senior home is permitted by right, no public hearing is required. The project is brought to the Planning Commission if a CUP is required, and is subject to consideration and approval as any other use permitted by CUP. Where a senior group home may be requested with a CUP as part of a specific plan , the use would be considered and approved within the established public hearing process as part of the total specific plan and subject to the applicable Zoning Code provisions. Environmental and Infrastructure Constraints Development of new housing in La Quinta will continue to take place both north and south of Highway ill. Public services and infrastructure are being upgraded and expanded within the City. Major flood control programs have been funded by the City and constructed by the Coachella Valley Water District (CVWD) for the protection of the Cove Area. In response to growth, Desert Sands and Coachella Valley Unified School Districts operate several elementary schools, middle schools, and high schools that serve La Quinta residents. Three Riverside County Fire Department stations serve the City. The potable water system in the City is operated and administered by CVWD. The sanitary sewage collection and treatment system in the City is operated and administered by CVWD, which extends service based upon approved designs and improvements constructed by the private developer. The City of La Quinta is served by Southern California Gas Company. The Southern California Gas Company has indicated that the future supply of natural gas will meet demand generated by additional development in the City. Major infrastructure improvements, including full -width streets, water and sewer mains, and stormwater systems, are the responsibility of the developer to install with any development. Developers are required to provide parks or in -lieu fees as part of a residential development. When infrastructure improvements are made that benefit other properties, the subdivider is reimbursed from the area fund when other properties in the area are developed. HOUSING Opportunities for Energy Conservation The City has adopted a comprehensive Green and Sustainable La Quinta Program to enhance the City's conservation of resources and to reduce environmental impacts of existing and future conditions. This program will allow the City to consider a wide range of programs that will address energy, water, air quality, solid waste, land use, and transportation. Current Regulations and Programs Title 24 Regulations On a regulatory level, the City enforces the State Energy Conservation Standards (Title 24, California Code of Regulations). These standards incorporated into the City's Building Code provide a great deal of flexibility for individual builders to achieve a minimum "energy budget" through the use of various performance standards. These requirements apply to all new residential and commercial construction as well as remodeling and rehabilitation construction where square footage is added. Compliance with Title 24 on the use of energy - efficient appliances and insulation has reduced energy demand stemming from new residential development. Green Building Programs The two most prominent green building programs are California Green Builder, sponsored by the California Building Industry Association, and Leadership in Energy and Environmental Design (LEED), which is sponsored by the US Green Building Council. Both programs involve a third -party certification process, have different environmental goals, and apply to different types of development. Green Builder is a voluntary environmental building and certification program for residential construction. Certified homes will incorporate water -efficient landscaping and fixtures, utilize high efficiency insulation and ventilation systems, contain environmentally sound building materials, initiate waste reduction methods during construction, and be 15 percent over existing Title 24 energy efficiency standards. Green Builder has an existing partnership with Imperial Irrigation District (IID) and Burrtec Waste and Recycling Services (Burrtec) for builder and homeowner incentives. IID provides efficiency diagnostics, inspections, and a certification, which lead to financial incentives; and Burrtec provides a 15 percent-30 percent discount to builders for bin removal services. HOUSING 11-110 LEED is a national rating system for green buildings. Primarily focused on commercial and multifamily residential projects, LEED requires the developer to register their project with the US Green Building Council, who in turn reviews the project for conformance and assigns points based upon various efficiency, materials quality, and design factors. Once the Council has reviewed the project, it issues a certification based upon the number of points achieved in each category. City Projects The City has undertaken an aggressive series of green building programs that demonstrate the opportunities available to reduce the overall environmental impact of new developments. The Title 24 energy efficiency requirements significantly increase the overall energy efficiency of all new construction. Vista Dunes Courtyard Homes Located at 78-990 Miles Avenue (just west of Adams Street), the Vista Dunes project consists of 8o courtyard -oriented single-family and duplex homes. This LEED Platinum certified development includes photovoltaic cells to generate electrical power. This feature will annually save $720 per unit in electric utility costs. Water saving improvements will reduce water usage by 1,9oo,000 gallons per year for the entire project. It is estimated that this project exceeds Title 24 by 28 percent. Some of the units will exceed Title 24 requirements by 30 percent or more. At the time of its development, Vista Dunes Courtyard Homes was the first LEED Platinum certified multifamily affordable housing development of its size in the country. The City maintains a photographic history of the project and produced a video for educational purposes. Further, tenants will be educated on energy efficiencies through written materials, a DVD and the project operator, CORE Housing Management. Wolff Waters Place Housing Project This development exceeds Title 24 requirements by 24 percent and will save approximately 2,000,000 gallons of water from interior water use alone. Compliance with the new CVWD Ordinance will further reduce exterior water use. HOUSING The project is LEED certified and includes solar hot water for laundry buildings, a transit friendly location with a bus stop and shopping within walking distance, low -water -use landscape and irrigation, dual flush toilets, low -flow water fixtures, energy -efficient lights, ENERGY STAR appliances, recycled building materials, paint with low volatile organic compounds, reduced construction waste, advanced indoor air handling systems, underground parking, high efficiency air conditioning units, and a tenant training program. Greenhouse Gas Reduction Plan In conjunction with the adoption of its 2013 General Plan, the City adopted a Greenhouse Gas Reduction Plan. The Plan provides residents, business owners and land owners with a broad range of measures designed to reduce energy use and the use of fossil fuels. The Plan will be effective in reducing costs for existing homes and for new residential development. It will also allow changes in driving patterns, transit use and other measures that will reduce the City's dependence on traditional energy sources. Future City Programs/Actions The City seeks to encourage and enforce regulations or incentives that do not serve as constraints to the development or rehabilitation of housing. The City should focus on measures and techniques that assist the occupant in reducing energy costs, thereby increasing the amount of income that can be spent on housing, child care, health care, or other necessary costs. The implementation of a formal Green and Sustainable La Quinta Program will require participation of many city departments and agencies. Program costs could include energy audit upgrades for existing facilities and buildings, irrigation and landscape modifications to City -maintained properties, City fleet vehicles, and City maintenance equipment. The City's 2013 General Plan includes a Livable Community Element that provides direction on building siting, mixed use site planning, and energy reduction techniques. The element also includes a suite of policies and programs designed to lower energy costs, promote healthy living, and encourage high quality design. Under the direction of the City Manager's Office, Community Development and Community Services Department staff play an instrumental role in educating the community on water conservation programs and resources. HOUSING 11-112 Energy Conservation Partners In developing a better La Quinta the City cannot be successful without a sound relationship with Coachella Valley Water District, Imperial Irrigation District, Southern California Gas, Burrtec Waste and Recycling Services, Sunline Transit District, Coachella Valley Association of Governments, SCAG, and other entities. Additionally, many of the areas of concern, such as air quality and regional transportation, cannot be addressed without strong regional, state and federal programs. Utility Programs The City of La Quinta has a strong working relationship with the Imperial Irrigation District (IID). IID is proactive in creating energy savings via conservation programs, product rebates, and general tips. IID indicates that an average home owner can reduce energy use by to percent more by taking advantage of IID programs. IID offers rebate programs on the purchase of higher efficiency air conditioning units,the purchase of high efficiency refrigerators, and programmable thermostats. Additionally, product rebates are offered on ENERGY STAR equipment such as home and office electronics. IID also offers free in -home energy audits to its residential customers. IID also provides commercial programs such as audits for both older facilities and new construction; for new construction, IID offers design assistance. Rebate programs have been offered for solar panels and energy -efficient motors. HOUSING I I-113 HOUSING RESOURCES The City's RHNA is 364 units for the 2014-2021 planning period. The RHNA includes housing planning goals for four different income and affordability levels: very low, low, moderate, and above moderate. The City's RHNA by affordability level is 91 units of housing affordable to very low income households, 61 affordable for low income households, 66 affordable for moderate income households, and 146 above moderate income units. California housing element law allows local governments to obtain credit toward its RHNA housing goals in three ways: constructed and approved units, vacant and underutilized land, and the preservation of existing affordable housing. The City will rely on the construction of new units on vacant lands to meet its housing needs between 2014 and 2021. Constructed and Approved Housing Units During the 2014-2021 planning period, the City anticipates the rehabilitation and expansion of the Washington Street apartments. This project, which currently provides 72 affordable housing units, is planned to expand by constructing an additional 68 units affordable to very low income seniors. Of these 68 units, 26 are planned for extremely low income households. The project has been entitled, and is securing tax credit financing in 2013. Construction is expected to begin in 2014. Coral Mountain Apartments consists of 176 units, of which 36 are proposed to be affordable to very low income households, 138 to low income households, and 2 units will be affordable to moderate income households. The apartments will be completed in 2014, early in the 2014-2021 planning period. With the construction of these two projects, the City will meet all of its RHNA requirements for very low and low income households. The projects will result in the construction of 104 very low income units (13 more than the RHNA), and 138 low income units (72 more than the RHNA). As discussed earlier in this Element, current conditions in the real estate market make it possible for a moderate income household to afford market rate housing. Further, the rental market offers a broad range of units at rental rates of up to $1,285 per month. Table II-41 HOUSING I I-114 demonstrates the affordability of market rate rentals and home purchases in La Quinta for a moderate income four person household. Table II-41 Affordability of Housing 2013 Ownership Rental Median Existing $330,000 N/A Single Family Purchase Price Mortgage Costs $1,762 N/A (PITI) Rental Rate N/A $1,285 30% of Moderate $1,950 $1,950 Household Income Affordability $188 $665 Gap/Overage As shown in the table, the rental and resale market can accommodate some of the City's expected moderate income households during the 2014-2021 planning period. Altogether, the City has a moderate income RHNA of 66. Two units will be available for moderate income households at the Coral Mountain Apartments, and market rate rentals and resales will likely address the remaining need. The City had a vacant rental and ownership inventory of 1,66o units (see Table II-12) in 201o. The DOF estimates a similar vacancy rate in 2013. There is therefore considerable inventory available to meet the City's moderate and above moderate income RHNA of 18o units. The inventory of sites includes additional parcels (see below) that could accommodate moderate income housing. With the elimination of Redevelopment by the State, the City's ability to provide affordable housing in the future has essentially been eliminated. Given the City's active participation in affordable housing projects, this loss will be difficult to fill. The affordable housing needs of the community will forcibly require third party investment, whether from governmental or private sector sources. HOUSING 11-115 Table II-42 Constructed, Approved, and Pending Residential Projects Very Above Project Low Low Moderate Moderate Total Market Rate Projects Above Moderate Income Projects' 0 0 0 4,752 4,752 Income -Restricted Projects Coral Mountain Apartments 36 138 2 0 176 Washington Street Apartments Z 68 0 0 0 68 Total Constructed/Approved Projects too 138 2 4,752 4,996 2006-2014 RHNA 91 61 66 146 364 Balance of RHNA Allocation (13) (77) 64 (4,683) 64 Source: SCAG RHNA, City of La Quinta ' Based on vacant land available in the Low Density Residential General Plan category. 2 The units shown are new units and are in addition to 72 existing units that will be rehabilitated as a part of the project. Available Land for Housing With the previously described housing production credits, the City of La Quinta has a remaining unmet RHNA of 64 units for moderate income households. The Housing Element must identify available sites within the City that can accommodate the remaining unmet RH NA. The land inventory includes an analysis of the realistic capacity of the sites. An evaluation of zoning, densities, market demand, record of affordable housing development, and financial feasibility will establish the ability of available sites to provide housing for all income levels. Available Vacant Land The vacant land inventory only includes parcels that the City has identified as having the potential to develop during the 2014-2021 planning period. Additional vacant sites are located in the City, but are not assumed to have the potential to satisfy the current RHNA. The development potential for Village Commercial (VC) sites is assumed to be improved through logical consolidation with adjacent vacant lots. The City will encourage and facilitate lot consolidation in this district through incentives provided in Programs 1.5 and 3.5. The City's flexible HOUSING 11-116 development and use standards further facilitate the development of a range of housing types. Table II-43 provide a summary and illustration of the vacant land development potential within the City. All these sites were included in the City's inventory for the 2oo6-2013 planning period, but were not utilized. Table II-43 Vacant Land Inventory Map Owner APN Acres Existing Projected Projected Key GP/Zoning Density Yield RMH Sites 14.0 28o 646- DR/RMH(AH 1' AH 070-013 14.0 O) 20 28o Village Sites 770-122- 2a X 015 0.1 VC/VC 14 1 770-122- 2b y 014 0.1 VC/VC 14 1 770-122- 2c y 013 0.1 VC/VC 14 1 770-122- 2d Z 012 0.1 VC/VC 14 1 770-122- 2e Z 011 0.1 VC/VC 14 1 770-122- 21F Z 010 0.1 VC/VC 14 1 770-122- 2g AA 009 0.1 VC/VC 14 2 0. Site 2 Subtotal 5 8 770-152- 3a AB 005 0.1 VC/VC 14 2 770-152- 3b AB oo6 0.1 VC/VC 14 2 770-152- 3c AC 007 0.1 VC/VC 14 2 Site 3 Subtotal 0.34 6 770-155- 4 AD 001 0.40 VC/VC 14 6 770-156- 5a AE 007 0.23 VC/VC 14 3 770-156- 5b AF oo6 0.28 VC/VC 14 4 770-156- 5c AG 010 0.39 VC/VC 14 5 770-181- 5d AG 009 0.36 VC/VC 14 5 Site 5 Subtotal 1.26 18 HOUSING I I-117 Table II-43 Vacant Land Inventory Map Owner APN Acres Existing Projected Projected Key GP/Zoning Density Yield 6a M 73-101-013 0.7 VC/VC 14 10 773-094- 6b N 013 o.6 VC/VC 14 8 773-094- 6c N 004 0.1 VC/VC 14 1 773-094- 6d N 003 0.1 VC/VC 14 1 773-094- 6e N 002 0.1 VC/VC 14 1 773-094- 6f N 001 0.1 VC/VC 14 1 Site 6 Subtotal 1.6 24 7a O 3-072-019 0.3 VC/VC 14 5 773-072- 7b P 005 0.1 VC/VC 14 1 773-072- 7c P 027 0.1 VC/VC 14 1 773-072- 7d P 026 0.1 VC/VC 14 1 773-072- 7e P 025 0.1 VC/VC 14 2 773-072- 7f P 024 0.1 VC/VC 14 2 773-072- 7g P 023 0.1 VC/VC 14 1 773-072- 7h P 022 0.1 VC/VC 14 1 7i P 3-072-021 0.1 VC/VC 14 1 773-073- 71 Q 004 0.1 VC/VC 14 2 773-073- A R 005 0.1 VC/VC 14 2 773-075- 71 S 008 0.1 VC/VC 14 2 773-075- 7m S 009 0.1 VC/VC 14 2 7n T 3-077-014 o.8 VC/VC 14 11 70 M 3-077-013 0.4 VC/VC 14 5 Site 7 Subtotal 2.7 38 773-078- 8a U 005 0.1 VC/VC 14 2 773-078- 8b V oo6 0.1 VC/VC 14 2 773-078- 8c V 007 0.1 VC/VC 14 2 773-078- 8d w o16 0.1 VC/VC 14 2 HOUSING II-118 Table II-43 Vacant Land Inventory Map Key Owner APN Acres Existing GP/Zoning Projected Density Projected Yield 8e w 773-078- 017 0.1 vC/vC 14 z Site 8 Subtotal p.6 8 Total All Sites 1 21.4 388 Site Adequacy Analysis The sites shown in Table II-43, above, all accommodate residential development at various densities. Site 1 is residentially designated, and benefits from the Affordable Housing Overlay, which increases its density potential (please see below). During the previous planning period, residential development in La Quinta was built at or near the maximum allowable densities. For example, development in the RM zone generally occurred at the maximum density of 8 units per acre or above through density bonus provisions. Centerpointe, an approved 224-unit project will be built at densities of 7.6 units per acre in the RM zone. Older examples include the Miraflores Apartments, which were constructed at a density of 11.2 units per acre in the RM zone in 2003. In 2004, Hadley Villas Apartments were developed at a density of 7.8 units per acre in the RM zone. In 2001, the Aventine Apartments were constructed at a density Of 14.3 units per acre in the RH zone. In 2004 Silverhawk Apartments were constructed in the VC zone —which currently permits residential projects up to 16 units per acre, with the potential for 24 units per acre if the Affordable Housing Overlay is applied —at a density of 19.3 units per acre under density bonus provisions. The Silverhawk project provides 214 units, 14 of which are located above 9,435 square feet of retail space. Restricted -affordable projects such as Wolff Waters Place was built at 14.7 units per acre. Although the Washington Street Apartments expansion and Coral Mountain Apartments construction will exceed the City's RHNA for very low and low income households, and current economic conditions allow moderate income households to afford market rate rental and resale properties„ additional sites have been identified to increase residential development potential. Based on these existing development trends, vacant sites are assumed to build out at densities near or at the maximum density permitted in HOUSING each zone during the planning period. Unit yield projections for vacant sites do not include a density bonus or second units. Environment and Infrastructure Analysis None of the parcels identified in the vacant land inventory are located in areas of topographic constraint or have known environmental hazards. The sites identified in the vacant land inventory are adjacent to existing urbanized development and are within service hook-up distance of existing water and sewer systems. According to the latest Coachella Valley Water Management Plan (2002), the implementation of water conservation, groundwater recharge, and water source substitution management strategies will ensure that adequate water resources are available to existing and future residents of La Quinta. Capacity Analysis The City will meet its RHNA for very low and low income households with the construction of the Washington Street Apartment expansion and the Coral Mountain Apartments. Further, the Coral Canyon Apartments will provide two units for moderate income households. This leaves a RHNA need of 64 units for moderate income households. As described above, the median sales price for a resale home was approximately $330,00o and the highest rent for an apartment unit was approximately $1,285 per month. In comparison, the maximum affordable sales price for a moderate income family of four is $328,9oo and the maximum affordable rent for a moderate income couple is $1,56o per month. Moderate income households, therefore, can afford to rent in the City, and are able to afford purchasing resale homes that are lower than the median price currently. Some moderate income households, especially one and two person households or larger families, will need assistance to purchase a home. The subsidy can be provided by affordable housing developers, which have constructed thousands of affordable units in La Quinta and the Coachella Valley in the past. Affordable housing developers often have access to government funds, grants, and tax subsidies that market -rate developers do not. Additionally, affordable housing developers are driven by the goal of providing affordable housing rather than maximizing profit. Affordable housing developers still, however, seek a lower internal rate -of -return. General proforma analyses were conducted using land costs ($75,000- $150,000 per acre outside of the City's developed center and HOUSING 11-120 approximately $1 million in the Village area) and construction costs ($150 per square foot according to affordable housing developers contacted in the preparation of this Update) to estimate the capacity of land in La Quinta to support affordable housing. The results indicate that homeownership products will remain available to moderate income households without a very large subsidy. The developers of ownership projects require financial returns through the one-time sale of the housing units. A generally accepted minimum project size for affordable housing development is 50 units. Like their higher density counterparts, lower density sites able to accommodate 50 units are eligible for funding mechanisms such as Low Income Housing Tax Credits (LIHTCs), a type of restricted development that must meet strict size and amenity guidelines to compete for funding. High density is also not a determining factor in obtaining other resources, such as HOME funds and Community Development Block Grant program funding. The RM and RMH sites identified in Table II-43 above, would both allow a minimum project size consistent with these requirements. Financial and Regulatory Subsidies A subsidy can be financial or regulatory in nature. Financial subsidies are found in federal, state, local, and private programs and organizations focused on the production of affordable housing. Developers in La Quinta use and leverage many sources of financial assistance. Projects may seek funding from Low Income Housing Tax Credits, tax-exempt bonds, Community Development Block Grants, HOME funds, other HUD grant programs, and commercial banking resources. Regulatory subsidies can take many forms, including fee waivers or deferrals, flexible development standards, and increased densities. Higher densities generally increase the financial feasibility of a residential project as a developer is able to sell more housing units on the same amount and cost of land (even with slightly lower sales prices associated with smaller, attached units). The City's vision recognizes the importance of providing affordable housing for its residents and employees. Accordingly, the City supports affordable housing development through financial and regulatory subsidies and permits densities up to 24 units per acre with the Affordable Housing Overlay (higher densities are permitted through density bonus provisions). The City is thereby able to achieve both the HOUSING 11-121 goal of maintaining lower density community character while also producing its fair share of affordable housing. Vacant Land Opportunities In the last decade the City has established a strong record of providing assistance to affordable multifamily housing projects (townhomes and apartments), ranging in density from 7.8 to over 20 units per acre. Single-family detached assisted housing was also developed, with City assistance, at densities as low as 4.4 units per acre and up to 7.8 units per acre. La Quinta is able to achieve market -driven moderate income housing through the relative affordability of land, the local market demand for lower maintenance housing types, the depressed state of the housing market, and reasonable development impact and entitlement fees. La Quinta has a solid record of working with local nonprofits and affordable housing developers to accommodate the housing needs of its lower income residents. The vacant land inventory provides the City and affordable housing developers with a map of opportunity areas. The moderate income housing need can be met without any mixed -use development. However, the City recognizes that mixed -use developments will play a role in moderate and above moderate housing opportunities in the future. Both the General Plan and the Zoning Ordinance have been modified to encourage Mixed Use development. Because of the current economy, however, there has been no such development proposal constructed in the City. Mixed Use properties are therefore not included in this inventory. HOUSING 11-122 PRESERVATION OF AT RISK UNITS State Government Code requires that localities identify and develop a program for their Housing Elements for the preservation of affordable multifamily units assisted under various federal, state and local programs. In the preservation analysis, localities are required to provide an inventory of assisted, affordable units that are eligible to convert to market rate within five years of the end of the planning period (2026). Income -restricted housing units sometimes change to market rate due to expiration of subsidies, mortgage prepayments, or expiration of affordability restrictions. The earliest possible date of conversion for any of the City's restricted multifamily housing stock is 2024 for the 45 very low and 46 low income units at Seasons Senior Apartments. An inventory of all assisted multifamily projects is provided in Table II-44• Table II-44 Assisted Multifamilv Proiect Inventory Earliest Date of Very Above Project Conversion Low Low Moderate Moderate Total Aventine Apartments 2056 0 10 10 18o zoo Hadley Villas Senior Apartments 2059 81 0 0 0 81 Miraflores Senior Apartments 2029 35 83 0 0 118 Seasons Senior Apartments 2024 45 46 0 0 91 Vista Dunes Courtyard Homes 2o63 79 0 1 0 8o Washington Street Apartments ' 2o66 72 0 0 0 72 Wolff Waters Place 2o65 216 0 2 0 218 Total N/A 528 139 88 305 i,o6o Source: City of La Quinta ' The existing 73 units will be rehabilitated. Covenants for the entire project will run for 55 years (2o66). HOUSING 11-123 Maintenance of the at -risk housing units as affordable will depend largely on market conditions, the status of HUD renewals of Section 8 contracts, and the attractiveness of financial incentives, if warranted. The cost to replace the 91 units at the Seasons Apartments will vary based on the timing of replacement and the economic conditions in the region. The Building Industry Association estimates that new multiple -family projects cost $125 to $130 per square foot. Using the average square footages of 1,000 square feet, the building replacement cost would be $11.83 million dollars. Perhaps the most effective means for preserving affordable units at risk of conversion to market rates units would be the transfer of ownership. A nonprofit housing corporation could purchase the project, rehabilitate it using Low Income Housing Tax Credits, and then extend the affordability controls. Qualified entities who could take on these projects include Habitat for Humanity and the Coachella Valley Housing Coalition, both of whom have been actively participating in affordable housing projects in the City. The City could facilitate this effort through a reduction in building permit fees, impact fees, or other indirect assistance. However, because of the elimination of redevelopment, the City will be unable to consider the purchase of these properties, and will have to rely on third party private sector involvement for the preservation of these units. Program H-2.3.c addresses the preservation of these units. HOUSING I I-124 GOALS, POLICIES, AND PROGRAMS The following goals, policies, and programs set forth a comprehensive housing plan for the City of La Quinta during the 2014-2021 planning period. Adequate Sites for Housing GOAL H-i Provide housing opportunities that meet the diverse needs of the City's existing and projected population. ❖ Policy H-1.1 Identify adequate sites to accommodate a range of product types, densities, and prices to address the housing needs of all household types, lifestyles, and income levels. Program 1.1.a: To address the City's RHNA allocation for extremely low income households, 26 of the 68 new units at the Washington Street Apartments will be designated for extremely low income households. The additional 19 units identified in the RHNA will be given priority either at Washington Street Apartments, or at projects on sites identified in the Vacant Land Inventory (Table II-43)• ■ Objective: Encourage the provision of 45 extremely low income units in new projects during the planning period. • Timing: 2015 for 26 units, 2015-2021 as projects are constructed for 19 units ■ Funding Source: Private Funding, Tax Credit Financing, Other sources as identified ■ Responsible Agency: Planning Department ❖ POlicy H-1.2 Focus housing growth within existing City boundaries until it is necessary to pursue annexation or development in planning areas for affordable housing. ❖ Policy H-1.3 Direct new housing development to viable areas where essential public facilities can be provided and employment opportunities, educational facilities, and commercial support are available. HOUSING I I-125 Assist in the Development of Affordable Housing GOAL H-2 Assist in the creation and provision of resources to support housing for lower and moderate income households. ❖ Policy H-2.1 Increase housing choices for lower and moderate income households. ❖ Policy H-2.2 Support public, private, and nonprofit efforts in the development of affordable housing. ❖ Policy H-2.3 Pursue a variety of forms of private, local, state, and federal assistance to support development of affordable housing. Program H-2.3.0: Collaborative Partnerships The City shall meet with parties interested in affordable housing development to discuss types of incentives available and requirements for obtaining assistance, discuss appropriate sites for affordable housing, and foster professional collaboration between the City and affordable housing stakeholders. ■ Objective: Continue to collaborate with nonprofits and the development community to develop affordable housing. ■ Timing: Project -by -project basis, by request, or on an annual basis. ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-2.3.b: Affordable Housing Renter -to -Owner Transition Low Income Housing Tax Credit (LIHTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low income households. LIHTC projects can transition from rental to ownership units. The units must remain rentals for 15 years, at which time some projects convert to ownership units. Typically a portion or all of the rent paid for the 5 years prior to the conversion is put toward the purchase of the unit. This enables lower income households to invest in the property in which they have been living and benefit from its appreciation. HOUSING II-126 Existing stalled condominium and townhome projects are prime opportunities for low income tax credits to be used for renter -to - owner programs. ■ Objective: Investigate the use of LIHTCs to finance affordable single-family attached rental development that can transition, after 15 years, into moderate income ownership housing. ■ Timing: Complete study by end of fiscal 2015 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-2.3.c: Affordable Housing Renter -to -Owner Transition There are many resources that the City, nonprofits, or for -profit developers may utilize to subsidize the construction and maintenance of affordable housing. Some of the most prominent resources are described below. ■ Objective: Advertise other financial resources through the affordable housing page of the City's website, apply for grants and competitive loans, and form partnerships with the development community to obtain additional financial resources. ■ Timing: Update website with funding information and partnership opportunities every six months or earlier if appropriate. ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Low Income Tax Credits Low Income Housing Tax Credit (LIHTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low income households. A minimum of 20 percent of the units must be affordable to low income households and 40 percent of the units must be affordable to moderate income households. Community Reinvestment Act The Community Reinvestment Act provides favorable financing to affordable housing developers. The Redevelopment Agency, development community, and local, regional, and national banks are encouraged to work together to meet their obligations pursuant to the Community Reinvestment Act. HOUSING 11-127 California Housing Finance Agency Program The California Housing Finance Agency (CHFA) has three single- family programs for primarily moderate and middle income homebuyers: the Home Ownership Assistance Program and the Affordable Housing Partnership Program. Each provides permanent mortgage financing for first-time homebuyers at below -market interest rates. HOME Funds HOME is the largest Federal block grant distributed to state and local governments for the creation of lower income housing. Cities apply when Notices of Funding Availability are issued. Neighborhood Stabilization Program HUD's Neighborhood Stabilization Program makes emergency assistance grants available to local governments for the acquisition, redevelopment, and renting or resale of foreclosed properties at -risk of abandonment. Riverside County First -Time Homebuyers Program Continue participation in the Riverside County First -Time Homebuyers Program for low and moderate income households. Mortgage Credit Certificate The Riverside County Mortgage Credit Certificate Program is designed to assist low and moderate income first time homebuyers. Under the Mortgage Credit Certificate Program, first-time homebuyers receive a tax credit based on a percentage of the interest paid on their mortgage. This tax credit allows the buyer to qualify more easily for home loans, as it increases the effective income of the buyer. Under federal legislation, zo percent of the funds must be set aside for buyers with incomes between 75 and 8o percent of the county median income. Finance Agency Lease -Purchase Program Riverside/San Bernardino County Housing Finance Agency Lease Purchase Program provides down payment assistance and closing costs for eligible households up to 140 percent of the area median income. HOUSING I I-128 Housing Choice Voucher (formerly Section 8) Referrals Housing Choice Vouchers allow lower income households to use rental subsidies anywhere in the County, including La Quinta. Program H-2.3.d: Sweat Equity and Shared Equity Sweat equity and shared equity programs provide lower and moderate income households with ownership assistance. Sweat equity refers to the exchange of time and effort, usually in the form of construction activities, for an affordable ownership opportunity. ■ Objective: Continue to work with organizations that offer sweat and shared equity housing programs to lower and moderate income households in La Quinta. ■ Timing: Meet with organizations annually or more frequently (if requested or advantageous) to identify opportunities for coordinated efforts or potential housing projects. ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Removal of Governmental Constraints to Housing GOAL H-3 Create a regulatory system that does not unduly constrain the maintenance, improvement, and development of housing affordable to all La Quinta residents. ❖ Policy H-3.1 Remove unnecessary regulatory constraints to enable the construction or rehabilitation of housing that meets the needs of La Quinta residents, including lower income and special needs residents. ❖ Policy H-3.2 Coordinate the development of affordable housing with the provision of key utilities to ensure prompt and adequate service. ❖ Policy-1�3 Incentivize the development of affordable housing to facilitate the development of housing for the City's lower and moderate income households. HOUSING Program H-3.3.a: Priority Water and Sewer Service In compliance with state law, the Coachella Valley Water District (CVWD) must create procedures to provide priority water and sewer service to lower income residential project. The law also prohibits the denial or conditioning the approval of service without adequate findings, and requires future water management plans to identify projected water use for lower income residential development. ■ Objective: Route the adopted Housing Element to the CVWD and notify them of changes and future updates to the Housing Element. ■ Timing: Upon Housing Element adoption ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-3.3.b: Reduced Parking Standards There are several potential opportunities to reduce parking standards for special types of development in La Quinta. While the City already has special parking standards for multifamily senior housing, there is potential to further reduce those requirements, particularly for lower and moderate income senior housing. The compact, mixed -use character of the Village area may also foster opportunities for parking reductions or joint -use opportunities. Lower and moderate income households may own fewer vehicles than above moderate income households, and be more inclined to walk or use public transportation. Incentives such as reduced parking requirements could be offered for affordable housing developments. ■ Objective: Study the potential impacts of adopting reduced parking requirements or shared parking standards for senior housing and housing in the Village, particularly for projects serving lower and moderate income households. ■ Timing: Zoning Ordinance Update 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-3.3.c: Encourage Lot Consolidation Several small lots in the Village Commercial would have improved development potential through lot consolidation. The City will study, identify, and adopt regulatory incentives to encourage and facilitate lot consolidation. Potential incentives include fee deferral or reductions, parking requirement reduction, and relief from various other HOUSING I I-130 development standards that could potentially increase the cost of the project. ■ Objective: Identify opportunities and adopt incentives for lot consolidation in the Village Commercial zone ■ Timing: July 1, 2015 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department GOAL H-4 Conserve and improve the quality of existing La Quinta neighborhoods and individual properties. ❖ Policy H-4.1 Protect the quality of La Quinta's neighborhoods through the rehabilitation of both affordable and market -rate homes. ❖ Policy H-4.2 Promote financial and technical assistance to lower and moderate income households for housing maintenance and improvements. ❖ Policy H-4.3 Encourage the retention and rehabilitation of existing single-family neighborhoods and mobile home parks that are economically and physically sound. ❖ Policy H-4.4 Enhance neighborhoods that presently provide affordable housing with drainage, lighting and landscape amenities, and parks and recreation areas. Program H-4.4.a: Housing Condition Monitoring To better understand the City's housing needs the quality and condition of the housing stock must be inventories on a regular basis. The inventory should focus on older neighborhoods, such as those south of Calle Tampico, west of Washington Street, and north of Highway ill. ■ Objective: Maintain an inventory of housing conditions (updated approximately every five years) to enable the City to properly target Code Compliance and rehabilitation resources. HOUSING I I-131 ■ Timing: Complete by June 30, 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-4.4.b: County of Riverside Senior Residential Rehabilitation The Minor Senior Home Repair program allocates grants up to $250 per year for lower income seniors for minor housing repairs, such as painting doors or trim, or repairing a window. The Enhanced Senior Home Repair Program provides major rehabilitation and repair for low income seniors, providing a one-time grant for repairs to homes owned and occupied by seniors and/or persons with disabilities. The maximum level of assistance for this program is $3,000 per year. ■ Objective: Continue to refer code violators and interested parties to the County of Riverside Minor and Enhanced Senior Home Repair programs and other local resources. Assist homeowners in completing applications as necessary. ■ Timing: Throughout planning period, on a case -by -case basis ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-4.4.c: County of Riverside Home Repair Grant The County of Riverside Economic Development Agency Home Repair Program provides lower income households with up to $6,000 for home repairs such as a new roof, new air -conditioner, or a handicap ramp. As a jurisdiction in Riverside County, lower income La Quinta households are eligible for this grant. ■ Objective: Refer code violators and interested parties to the County of Riverside for home repair grants. ■ Timing: Throughout planning period, on a case -by -case basis ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-4.4.d: Rehabilitation Resources List Lower and moderate income homeowners may need assistance in affording important home repairs and improvements. The City can assist these households by compiling and sharing a listing of local, state, and federal programs offering rehabilitation assistance. ■ Objective: Provide a rehabilitation resources list on the affordable housing and code compliance pages of the City's website. Use the list, in online or printed form, as a reference for code violators. HOUSING I I-132 ■ Timing: Create list by June 30, 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Equal Housing Opportunity GOAL H-5 Provide equal housing opportunities for all persons. ❖ POI_ic_y-5.1 Provide the regulatory framework to create an environment in which housing opportunities are equal. ❖ Policy 5.2 Encourage and support the enforcement of laws and regulations prohibiting discrimination in lending practices and in the sale or rental of housing. ❖ Policy 5.3 Encourage support services for the Coachella Valley's senior and homeless populations through referrals and collaborative efforts with non -profits and other jurisdictions. ❖ Policy 5.4 Assist in the creation of a continuum of care for the homeless population and those transitioning into permanent housing. ❖ Policy 5.5 Improve quality of life for disabled persons by facilitating relief from regulatory requirements that may create barriers to accessible housing and promoting universal design. Program H-5.5.a: Regional Facilities for the Homeless Continue to support and collaborate with the Coachella Valley Association of Governments Homelessness Committee efforts to maintain a regional homeless facility that provides housing as well as supportive services. The Strategic Plan created by the Homelessness Committee establishes a continuum of care for the Coachella Valley. ■ Timing: City staff will continue to collaborate with CVAG throughout the planning period (2014-2021), and work with the appropriate facilities directly. HOUSING 11-133 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-5.5.b: Transitional Housing and Permanent Supportive Housing Transitional housing typically accommodates homeless people for up to two years as they stabilize their lives and does not meet emergency needs. Transitional housing includes training and services that are vital for rehabilitating and enriching the lives of the formerly homeless. Transitional housing facilities provide families and individuals with a safe place within which to rebuild their lives and prepare for independence. Permanent supportive housing is affordable housing with on- or off -site services that help a person maintain a stable, housed, life. ■ Objective: The Zoning Ordinance shall allow transitional and supportive housing as a residential use in all zones which allow for residential development, and subject only to those restrictions that apply to similar residential uses (single or multi- family units) of the same type in the same zone, and will not be subject to any restrictions not imposed on similar dwellings, including occupancy limits. ■ Timing: Coordinate with 2009/2011 General Plan Update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Program H-5.5.c: Fair Housing Referrals Fair housing organizations provide dispute resolution and legal assistance to tenants and landlords in conflict. Such services are particularly important for lower and moderate income households unable to afford counsel. ■ Objective: Continue to refer tenants and landlords to the Fair Housing Council of Riverside County. Provide information on fair housing resources on the City's website and at City Hall. Identify and coordinate with local nonprofits, service organizations and community groups that can assist in distributing fair housing information. ■ Timing: Referral service as needed. Information to be placed on website and local groups identified by January 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department HOUSING 11-134 Program H-5.5.d: Directory of Services While numerous services are available to special needs and lower income households, it can be difficult to readily have access to these resources. A directory provides the contact information necessary to seek housing assistance. ■ Objective: Develop an online directory of services and information to provide La Quinta residents with contact information for community organizations and service providers that address special needs. ■ Timing: Update website by March 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Energy and Water Conservation GOAL H-6.i Provide a regulatory framework that facilitates and encourages energy and water conservation through sustainable site planning, project design, and green technologies and building materials. ❖ Policy H-6.1 Promote higher density and compact developments that increase energy efficiency and reduce land consumption. ❖ Policy H-6.2 Facilitate housing development and rehabilitation that conserves natural resources and minimizes greenhouse gas emissions. ❖ Poljcy H-6.3 Encourage and enforce green building regulations or incentives that do not serve as constraints to the development or rehabilitation of housing. ❖ Policy H-6.4 Focus sustainability efforts on measures and techniques that also assist the occupant in reducing energy costs; therefore reducing housing costs. HOUSING II-135 ❖ Policy H-6.5 Use and encourage emerging technologies to reduce high demands for electricity and natural gas including use of passive solar devices and where feasible other renewable energy technologies (e.g., biomass, wind, and geothermal). Program H-6.5.0: Green and Sustainable La Quinta Program Continue to implement the Green and Sustainable La Quinta Program. ■ Objective: Implement green goals, policies, and programs that accurately represent the City's direction in resource conservation and minimizing greenhouse gas emissions. Implement design standards for residential and commercial structures that encourage solar protection to directly result in energy conservation. ■ Timing: As projects are proposed ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-6.5.b: Energy Conservation Partners In working toward a sustainable La Quinta, the City and its residents will need to collaborate with utilities and service providers. Partnerships with the Coachella Valley Water District, Imperial Irrigation District, Southern California Gas, Burrtec Waste and Recycling Services, Sunline Transit District, Coachella Valley Association of Governments, Southern California Association of Governments and other entities will be an important component of making La Quinta a more livable city. ■ Objective: Continue to meet with and seek insight from utilities, service providers, and other entities involved in energy conservation efforts appropriate for La Quinta. ■ Timing: As part of regular coordination meetings with utilities ■ Funding Source: General Fund ■ Responsible Agency: City Manager's Office/Community Development Department Program H-6.5.c: Imperial Irrigation District Programs The Imperial Irrigation District (IID) is proactive in energy savings via conservation programs, product rebates, and general tips. An average home owner can save up to 10 percent on energy/energy bills by taking advantage of IID programs. Home owners can utilize the free "Check Me!" program, which checks the refrigerant charge and airflow of their HOUSING II-136 air conditioning/heating units. IID also offers a rebate on the purchase of higher efficiency air conditioning units, high efficiency refrigerators, programmable thermostats, and ENERGY STAR equipment. City staff has held several meetings with IID representatives to discuss opportunities for collaboration to conserve energy in La Quinta, including water management opportunities for golf courses and golf - oriented communities. ■ Objective: Maintain contact with IID to market energy efficiency programs and rebates that are most beneficial to La Quinta residents and homeowners. ■ Timing: Quarterly through Desert Cities Energy Partnership meetings ■ Funding Source: General Fund, IID program funds, and potential AB 811 special assessment district funds ■ Responsible Agency: City Manager's Office/Community Development Department Program H-6.5.d: Weatherization Assistance The Federal Department of Energy's Weatherization Assistance Program, in conjunction with state and local programs, provide low or no cost weatherization and insulation services to reduce the heating and cooling costs for low income households. ■ Objective: Encourage low income homeowners or renters to apply for free energy audits, home weatherization, and utility rebate programs by advertising available programs on the City's website and at City Hall. ■ Timing: Advertise annually as program funds are available ■ Funding: General Fund ■ Responsible Agency: Building and Safety Department City Manager's Office HOUSING 11-137 EN TATE OF CALIFORNIA - BUSINESS. CONSUMFR SFRVI(:FS AND HOUSINQ AQFN(Y FDMUND G BROWN .IR.. GnvPmnr DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 1 FAX (916) 263-7453 www.hod.ca.gov ATTACHMENT # 2 September 16, 2013 Mr. Les Johnson Planning Director City of La Quinta P.O. Box 1504 La Quinta, CA 92247-1504 Dear Mr. Johnson: RE: Review of the City of La Quinta's 5th Cycle (2013-2021) Draft Housing Element Thank you for submitting the City of La Quinta's draft housing element update received for review on July 19, 2013, along with additional revisions received on August 28, September 11 and September 13, 2013. Pursuant to Government Code (GC) Section 65585(b), the Department is reporting the results of its review. A telephone conversation on August 20, 2013 with you, David Sawyer and Wally Nesbit, of your staff, and Nicole Sauviat-Criste, the City's consultant, facilitated the review. The Department conducted a streamlined review of the draft housing element based on the City meeting all eligibility criteria detailed in the Department's Housing Element Update Guidance. The City utilized SCAG's pre -approved housing element data. The draft element meets the statutory requirements of State housing element law. The element will comply with State housing element law (Article 10.6 of the GC) when adopted and submitted to the Department, pursuant to GC Section 65585(g). The Department commends La Quinta on the rehabilitation and expansion of the Washington Street Apartments and for securing funding for the Coral Mountain Apartments which will provide 174 new units for lower -income families and workers. In addition, the City's successful implementation of programs H.1.2.a and H.1.5.b (4th cycle housing element) resulting in the adoption of an Affordable Housing Overlay will provide for higher density residential development to address the City's current and future housing needs for lower- and moderate -income households. Mr. Johnson Page 2 To remain on an eight year planning cycle, pursuant to Senate Bill 375 (Chapter 728, Statutes of 2008) the City must adopt its housing element within 120 calendar days from the statutory due date of October 15, 2013 for SCAG localities. if adopted after this date, the City will be required to revise the housing element every four years until adopting at least two consecutive revisions by the statutory deadline (GC Section 65588(e)(4)). For information on housing element adoption requirements, please visit our website at: http://www.hcd.ca.gov/hpd/hrc/plan/he/he review adoption steps 110812.pdf. Public Participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower -income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. The Department is pleased to inform the City that prior 4th cycle housing element compliance meets one of the threshold requirements of the Housing Related Parks (HRP) Program which rewards local governments for approving housing affordable to lower -income households. The HRP Program, funded by Proposition 1C, provides grant funds to eligible local governments for every qualifying unit permitted since 2010. Grant awards can be used to fund park -related capital asset projects. Please note, units permitted in the Washington Street and Coral Mountain projects may be eligible to receive financial rewards under the program of up to $2725 per bedroom. Information about the HRP is available on the Department's website at http://www.hcd.ca.gov/hpd/hrppl. The Department looks forward to receiving La Quinta's adopted housing element. If you have any questions or need additional technical assistance, please contact James Johnson, of our staff, at (916) 263-7426. Si ifer Seeger) ping Policy Manager cc: Nicole Sauviat-Criste, Terra Nova ATTACHMENT # 1 LA QUINTA HOUSING ELEMENT UPDATE: 2014-2021 PLANNING PERIOD FINAL DRAFT REVIEW DOCUMENT SEPTEMBER 28, 2013 Table of Contents HOUSING.....................................................................................................................................II-1 PURPOSE.................................................................................................................................11-1 INTRODUCTION......................................................................................................................11-4 HOUSING VISION STATEMENT............................................................................................II-44 COMMUNITY PROFILE.........................................................................................................11-45 HOUSING PROFILE...............................................................................................................11-5z HOUSINGNEEDS..................................................................................................................II-67 HOUSING CONSTRAINTS.....................................................................................................11-85 HOUSING RESOURCES........................................................................................................II-114 PRESERVATION OF AT RISK UNITS....................................................................................II-1z3 GOALS, POLICIES, AND PROGRAMS..................................................................................11-1z5 List of Tables Table II-1 Quantified Objectives 2014-2021................................................................................ II-3 TableII-z Population Growth...................................................................................................11-45 Table II-3 Population Growth In Coachella Valley Cities.........................................................II-46 TableII-4 Age Distribution....................................................................................................... II-47 Table II-51980-20oo Ethnic Background of Population........................................................ II-47 Table II-6 Employment by Industry.........................................................................................II-49 Table II-7 Major Employers La Quinta Community Area.........................................................11-49 Table II-8 2011 Household Income Estimates...........................................................................11-51 Table II-9 Income Limits by Household Size, 2012...................................................................11-51 Table 11-10 Households by Income Category, 2010..................................................................11-51 Table II-11 Total Housing Stock z000 to 2010.......................................................................... II-53 Table II-12 Total Dwelling Units by Type of Structure z000 to zolz....................................... II-53 Table 11-13 Historic Record of Housing Development.............................................................11-54 Table 11-14 Total Households, z000 and 2010.......................................................................... II-55 Table II-15 Household Size, z000 and 2010 ..............................................................................11-56 Table II-16 Housing Tenure and Vacancy................................................................................. II-57 Table II-17 Age of Housing Stock in La Quinta.........................................................................11-58 Table II-18 Bedrooms Per Unit, 2000-2011..............................................................................II-63 Table II-19 Bedrooms in Dwelling Unit by Tenure, 2010.........................................................11-64 Table II-zo Sample Resale Prices of Single -Family Homes and Condominiums........................................................................................................ II-65 Table II-21 Representative Apartment Market Rental Rates..................................................11-67 Table II-22 Overpayment by Income Category and Tenure ................................................... II-69 Table II-23 Affordable Housing Costs by Annual Income........................................................11-71 TableII-24 Overcrowding....................................................................................................... II-73 Table II-25 City of La Quinta Householders 65 Years and Over, by Tenure...........................11-74 Table II-26 City of La Quinta Number of Disabilities, by Disability Type' ............................... II-75 Table II-27 City of La Quinta Developmentally Disabled Population......................................11-76 Table II-28 Large Households by Tenure.................................................................................11-79 Table II-29 Coachella Valley Homeless Shelter Resources 2007.............................................11-83 Table II-30 2014-2021 Regional Housing Needs Assessment ................................................ 11-84 Table II-31 Residential General Plan and Zoning Districts.......................................................11-87 Table II-32 2013 Residential Development Standards.............................................................II-92 Table II-33 2013 Permitted Residential Uses by Residential Zoning District ..........................11-93 Table II-34 2013 Permitted Residential Uses by Nonresidential Zoning District ................... II-94 Table 11-35 Parking Requirements for Residential Uses..........................................................11-97 Table 11-36 Local Development Processing Times................................................................. 11-99 Table 11-37 State Development Processing Time Limits........................................................ 11-99 Table II-38 Impact Fees Per Unit of Development................................................................ II-104 Table II-39 Development Fees for Typical Single -Family and Multifamily Homes ............... 11-105 Table II-40 Planning Department Fee Schedule.................................................................... II-1o6 Table II-41 Affordability of Housing 2013................................................................................ II-115 Table 11-42 Constructed, Approved, and Pending Residential Projects................................11-116 Table II-43 Vacant Land Inventory.......................................................................................... II-117 Table II-44 Assisted Multifamily Project Inventory................................................................11-123 LIST OF EXHIBITS Exhibit II -1 Land Inventory Map........................................................................................... II-138 I PURPOSE The Housing Element of the La Quinta General Plan establishes the City's policy relative to the maintenance and development of housing to meet the needs of existing and future residents. Jurisdictions within the Southern California Association of Governments (SCAG) region must complete the statutory housing element update for a planning period that extends from 2014 to 2021. The 2014 Regional Housing Needs Assessment (RHNA) proposes that La Quinta provide the regulatory framework to facilitate the development of new housing units potentially affordable to a range of income levels. The City's RHNA is 364 units for the 2014-2021 planning period. The RHNA includes housing planning goals for very low, low, moderate, and above moderate income households. The City's RHNA by affordability level is 91 units of housing affordable to very low income households, 61 affordable for low income households, 66 affordable for moderate income households, and 146 above moderate income units. The housing element demonstrates the land resources, financial resources, market trends, and governmental efforts that have the potential to facilitate and encourage housing development and rehabilitation to meet the RHNA. Setting The City of La Quinta is one of nine cities in the Coachella Valley. A world-renowned vacation destination, La Quinta's population varies by season. La Quinta's permanent population is estimated at 37,467 persons in 201o. The seasonal population exceeds lo,000, increasing the City's population by 27% during winter months. La Quinta households are generally wealthier than other areas of Riverside County. The median household .F income of La Quinta for 2007-2011 was $67,444, significantly higher than the Riverside County median household income of $65,000. HOUSING 11-1 This income trend is related to the types of new housing available in La Quinta. La Quinta is home to many master planned communities. Although the number of multifamily units in the City more than doubled from z000 to 2010, multifamily units continue to represent less than 8 percent of the total housing stock. The downturn of the housing market has resulted in greater affordability in La Quinta. Much like other communities in the Coachella Valley, since 20o6 the City's housing stock has provided a wide range of pricing options due to an oversupply of housing and foreclosures. Housing Resources California housing element law allows local governments to obtain credit toward its RHNA housing goals in three ways: constructed and approved units, vacant and underutilized land, and the preservation of existing affordable housing. With the economic downturn, moderate income households have access to affordable rental and for sale units. The Very Low and Low income household, however, will continue to require subsidized affordable housing. Housing Plan The housing element sets forth a comprehensive housing plan consisting of goals, policies, and programs to address existing and projected housing needs. The detailed programs provided are designed to identify sites to exceed the RHNA, assist the development of affordable housing, remove governmental constraints to housing, preserve the existing housing stock, provide equal housing opportunities, and promote energy and water conservation in residential uses. Quantified Objectives The goals, policies, and programs will guide housing -related decision making and facilitate attainment of the 2014-2021 RHNA housing targets. As shown in Table II-1, constructed units and approved units make up the bulk of new construction counted toward the RHNA. HOUSING Each jurisdiction must establish quantified objectives by income category to prepare to meet or exceed the RHNA for the 2014-2021 planning period. The City of La Quinta's quantified objectives are based on constructed and approved units and land resources for new housing and programs created to address other existing and projected housing needs. Achieving the City of La Quinta's quantified objectives will rely on third party financing, since the elimination of redevelopment by the State has removed the City's single most important funding source. However, as evidenced by the approved projects planned for construction in 2014, the City and developers of affordable housing projects have secured funding sufficient to exceed the City's very low and low income RHNA allocation. Please see the Housing Resources section. Table II-i Quantified Obiectives 2-014-2-021 Type of Housing Very Low I Low I Moderate Above Moderate Total New Construction New Units 91 1 61 66 146 364 Rehabilitation/Conservation Residential Rehabilitation 10 10 0 0 20 Conservation (Seasons Senior Apartments, at risk 2024) 45 46 91 HOUSING 11-3 INTRODUCTION Purpose The Housing Element of the La Quinta Plan establishes the City's policy relative to the maintenance and development of housing to meet the needs of existing and future residents. These policies will guide City decision making and set forth a housing action program through 2021. These commitments are an expression of the desire of the City of La Quinta to facilitate adequate housing for every La Quinta resident. The City's housing policy is in line with the statewide housing goal of "attainment of decent housing and a suitable living environment for every California Family." The purpose of the Element is to establish official policy which: ❖ Identifies existing and projected housing needs, and inventories resources and constraints that are relevant to meeting these needs. The assessment and inventory include: Community Profile Housing Profile Land Resource Inventory Governmental and Nongovernmental Constraints Analysis Analysis of Special Needs Housing Identification of Assisted Units "At Risk" of Conversion ❖ Identifies the community's goals, objectives, and policies relative to the preservation, improvement, and development of housing. ❖ Sets forth a schedule of actions (programs) the City is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing. The Housing Element has been designed to address key housing issues in the City. These issues include appropriate housing types to meet the needs of all segments of the community while maintaining a low density character, provision of affordable housing for special needs groups in the community, and the maintenance of the existing housing stock. Consistency with State Planning Law California Government Code requires that every City and County prepare a Housing Element as part of its General Plan. In addition, State law contains specific requirements for the preparation and HOUSING content of Housing Elements. Sections 6558o to 65589.8 of the California Government Code contain the legislative mandate for the housing element. State law requires that the City's Housing Element consist of "identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement and development of housing." Since the last planning period, Government Code Section 65583 was amended by Senate Bill 812, requiring the Housing Element to include identification and analysis of special housing needs for individuals with developmental disabilities within the City. State law also requires that the City evaluate its housing element approximately every eight years to determine its effectiveness in achieving City and statewide housing goals and objectives, and to adopt an updated Element that reflects the results of this evaluation. State law is very specific on the content of the Housing Element and makes it clear that the provision of affordable housing is the responsibility of all local governments. The City is expected to contribute toward regional housing needs and to contribute to the attainment of state housing goals. General Plan Consistency The goals, policies, standards and proposals within this element relate directly to and are consistent with all other elements. The City's Housing Element identifies programs and resources required for the preservation, improvement, and development of housing to meet the existing and projected needs of its population. The Housing Element is affected by development policies contained in the Land Use Element, which establishes the locations, types, intensity, and distribution of land uses throughout the City and defines the buildout land use scenario. In designating total acreage density of residential development, the Land Use Element places an upper limit on the number and types of housing units constructed in the City. The acreage designated for a range of commercial and office uses creates employment opportunities for various income groups. The presence and potential for jobs affects the current and future demand for housing at the various income levels in the City. In addition, the General Plan Land Use Element has been updated in accordance with Senate Bill 244. There are no disadvantaged unincorporated communities in the City's Sphere of Influence. HOUSING 11-5 The Circulation Element also affects the implementation of the Housing Element. The Circulation Element establishes policies for providing essential streets and roadways to all housing that is developed. The policies that are contained in the other elements of the General Plan affect the quality of life of the citizens of the City through the control of the amount and variety of open space and recreation areas, acceptable noise levels in residential areas, and programs to provide for the safety of the residents. The Housing Element utilizes the most current data available. It includes 1990, 2000 and 2010 Census data, American Community Survey data, 2013 California Department of Finance (DOF) data, 2009 Comprehensive Housing Affordability Strategy data, field surveys for housing conditions, data generated from the 2013 General Plan Update, and 2012 SCAG Housing needs data, and is consistent with existing and projected population, employment, and housing figures presented by county, state, and national agencies. Scope and Content This Housing Element updates the Housing Element adopted by the City in August of 2011. The Housing Element is organized in the following manner: ❖ Introduction: A statement of the purpose of the Housing Element and statutory requirements, a statement of the relationship between the Housing Element and other General Plan elements, the scope, content and organization of the Element, and a summary of the public participation process. ❖ Evaluation of Past Element: A summary of the achievements and an evaluation of the effectiveness of the past Housing Element. ❖ Housing Vision Statement: A statement describing the future vision of housing in La Quinta as developed by the citizens and elected officials of the City. The policies in the Housing Element are designed to bring this vision to fruition. ❖ Community Profile and Housing Profile: A discussion of the characteristics of the population, households, and housing stock in La Quinta, including growth and affordability trends. ❖ Housing Needs: An analysis of groups in the City that may have special housing needs, the implications of the affordability of HOUSING 11-6 housing stock in relation to household income, and projected housing needs. ❖ Housing Constraints: A discussion of governmental and nongovernmental constraints to the development of housing and opportunities for energy conservation in residential planning, design, construction, and rehabilitation. ❖ Housing Resources: An inventory of constructed and approved units, land available for residential development, and underutilized sites available for residential redevelopment, and an analysis of the ability of these projects and sites to meet the Regional Housing Needs Assessment (RHNA). ❖ Preservation of At Risk Units: A description of any assisted, affordable multifamily units that are eligible to convert to market rate within to years of the planning period. ❖ Goals, Policies, and Programs: A description of housing goals, policies, and programs responsive to the City's current and projected housing needs. Also included is a summary of the City's quantified objectives for new residential construction, rehabilitation, and financial assistance during the planning period. EFFECTIVENESS OF THE 2006-2013 HOUSING ELEMENT To develop appropriate programs to address the housing issues identified in this Housing Element Update, the City of La Quinta has reviewed the effectiveness of the housing programs adopted in the 2oo6-2013 Housing Element. The State of California requires an assessment of the previous housing program to identify areas of accomplishment as well as areas in which improvement could occur following the implementation of new or modified programs. The following section reviews the progress in implementation of the programs, the effectiveness of the Element, and the continued appropriateness of the identified programs. Analysis of the past element is quantified where such information is available. The results of the analysis provided the basis for developing the comprehensive housing strategy for the planning period in progress. HOUSING 11-7 Program Evaluation Adequate Sites for Housing ❖ Policy H-1.1 Identify adequate sites to accommodate a range of product types, densities, and prices to address the housing needs of all household types, lifestyles, and income levels. Program H-i.i.a: General Plan Update. The City's General Plan is proposed to be updated during the planning period, beginning in late zoog. The update process provides an ideal opportunity to investigate potential land and policy resources for new housing construction. ■ Objective: Explore new opportunities for housing affordable to a range of incomes through modified or new land uses and overlay districts. ■ Timing: Anticipated adoption Fall zoll ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City's General Plan was adopted in February of 2013. It includes a Livable Community Element, which details principles such as mixed use development, redevelopment of existing projects to connect residential and commercial projects for pedestrians and bicyclists, and improving energy efficiency through design. This program was successfully completed and will not be extended into the 2014-2021 planning period. Policy H-1.z Focus housing growth within existing City boundaries until it is necessary to pursue annexation or development in planning areas for affordable housing. Program H-1.2.o: Available Land for Housing. While the development capacity of land identified in the vacant and underutilized land inventory has the potential to meet RHNA under current zoning designations, upzoning key sites will increase capacity and may facilitate the development of housing affordable to a range of incomes. HOUSING 11-8 ■ Objective: Increase the capacity for housing on vacant and underutilized sites by rezoning particular sites as discussed in Section 7.0. ■ Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City has completed the rezoning of several sites and applied an Affordable fordable Housing Overlay (AHO) to commercial lands to increase capacity and facilitate to the development of affordable housing (Ordinance Nos. 512, 513 and 514, adopted June 4, 2013). The following table provides a list of rezoned APN's, the previous designation, and current designation. It should be noted that all commercial lands and several residential sites have an AHO designation. This program was successfully completed and will not be extended into the 2014-2021 planning period. City of La Quinta Rezoning of Vacant/Underutilized Sites APN I Previous Zoning I Current Zoning VACANT LAND INVENTORY 766-070-004 LDR/RL MDR/RM 646-07o-ol6 MHDR/RMH MHDR/RMH, AHO 777-030-017 NC/CN NC/CN, AHO 643-200-007 CC/CC CC/CC, AHO 600-390-024 RC&CP/CR&CP RC&CP/CR&CP, AHO 643-080-049 RC/CR RC/CR, AHO 643-020-032 RC/CR RC/CR, AHO 643-020-025 RC/CR RC/CR, AHO 600-340-048 RC/CR RC/CR, AHO UNDERUTILIZED LAND INVENTORY 6o9-o5l-002 LDR/RL MDR/RM, AHO 609-052-002 LDR/RL MDR/RM, AHO 770-040-012 MDR/RM MDR/RM, AHO 777-030-007 VLDR/RL MDR/RM 6o0-030-001 through 6o0-030-010 MDR/RM MHDR/RMH, AHO 777-010-001 NC/CN NC/CN, AHO 773-370-027 VC/VC VC/VC, AHO Source: City of La Quinta Community Development Department Table C-1: Draft Vacant Land Inventory, City of La Quinta Housing Element Table C-z: Draft Underutilized Land Inventory, City of La Quinta Housing Element HOUSING Program H-1.2.b: Small Lot Subdivision Ordinance. Smaller homes on smaller lots create potential for market -driven affordable housing to be developed in La Quinta, and is an appropriate form of housing for first-time homebuyers, small households, and seniors. The ordinance would create additional housing potential on small infill sites. Such an ordinance would include consideration for incentivizing small lot developments such as fee reductions, flexible development standards, allowances for small -lot, market -rate projects to utilize parking and other development -related density bonus incentives usually reserved for affordable projects, and expediting review of small -lot subdivision maps. ■ smaller lots than currently permitted to facilitate the creation of small single-family detached and attached homes. ■ Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City considered the inclusion of a small lot subdivision ordinance as part of the zoning update undertaken for program H-1.2.a. The evaluation considered the historical development pattern in the City, and the tools already available to the development community to facilitate smaller lots. It was determined that existing small lots in the Village and Cove have not developed because of their size, and have on the contrary been consolidated to create larger, more useable lots. Further, the development community has very effectively used Specific Plans to achieve the same results as a small lot ordinance. Therefore, the City did not include such an ordinance in the update completed in 2013. The program will not be extended into the 2014-2021 planning period. ❖ Policy H-1.3 Direct new housing development to viable areas where essential public facilities can be provided and employment opportunities, educational facilities, and commercial support are available. Evaluation: The City continued to look at projects for affordable housing on infill sites and in areas where transit and employment were readily available. The Vista Dunes project, built during the 2oo6-2013 planning period, is located on a major arterial, close to schools, transit and employment, and provides 8o affordable housing units. Both the Washington Street Apartments and Coral Mountain Apartments are planned for such sites. This policy was successful and will be extended into the 2014-2021 planning period. HOUSING ❖ Policy H-1.4 Support the construction of new affordable housing by rezoning, where appropriate and desirable, to permit higher density residential development. Evaluation: See evaluation of Program H-1.2.a. This policy was successfully completed and will not be extended into the 2014-2021 planning period. ❖ Policy H-1.5 Pursue land banking opportunities for housing that exceeds the 20o6- 2014 RHNA. Program H-1.5.a: Land Banking. The recent downturn in the market reduces competition for purchasing vacant and underutilized residential sites. Land costs are a critical concern for the affordable housing development community. By purchasing land as it becomes available, the Redevelopment Agency will be able to provide sites at low or no cost to the developer for the purpose of subsidizing development to meet the RHNA. For example, the Agency sold a 15-acre site to Coachella Valley Housing Coalition for $1 to develop Wolff Waters Place, a project providing 218 affordable units completed in zoog. The City will continue to acquire and consolidate parcels associated with Site U8, in particular related to continuing discussions with the owners of the existing 10.3 acre trailer park. ■ Objective: Utilize Agency funds for the purchase of sites to meet the RHNA. ■ Timing: 2oo6-2014 as determined by land availability and the Redevelopment Agency Implementation Plan. ■ Funding Source: LMIHF ■ Responsible Agency: Redevelopment Agency Evaluation: Prior to the elimination of redevelopment in California, during the 2oo6-2013 planning period, the City's Redevelopment Agency purchased a number of lots in the Village, as well as properties in North La Quinta. In total, the Agency purchased 33 acres of land with a development potential of approximately 400 units. With the elimination of redevelopment, however, the Agency no longer exists, and those properties are unlikely to be developed for affordable housing. This program cannot be continued, and will be eliminated. HOUSING -- -:�r _. . Program H-1.5.b: Affordable Housing Overlay. While affordable housing has been produced at relatively low densities in the City, additional density options could further expand the opportunity for affordable housing projects. Certain areas of the City could accommodate additional residential density without creating inconsistent land use patterns within the existing fabric. Additionally, most large-scale commercial development in La Quinta is one-story and does not approach the maximum allowable height limit. Permitting residential uses over commercial and office uses will increase the City's capacity for housing and encourage vibrant, mixed - use nodes throughout the City without increasing existing building heights. Residential uses from o to 16 units per acre are currently permitted in the VC zone with a Village Use Permit and in the CR and CP zones with a conditional use permit. Higher density residential development would provide new attached housing opportunities for singles, couples, and small families that wish to enjoy La Quinta without the high cost associated with resort -style living. An Affordable Housing Overlay (AHO) would permit higher density development to occur in specific parts of the City provided the residential project dedicate at least 25 percent of the housing for lower income households. Property owners would not be required to develop affordable housing on their sites; however, projects that do so would be permitted to develop housing at densities of 20-24 units per acre. Moreover, the 24 unit per acre density would serve as the base level for the application of a density bonus under State law. Projects with an affordability component under 25% could be granted specific density bonus incentives they may not otherwise qualify for. Under existing provisions, affordable housing projects would be eligible for an additional 35 percent density bonus and could reach a maximum of just over 32 units per acre. Projects developed under the AHO would require a density of at least zo units per acre. The AHO would also set forth financial and other incentives that could be made available, such as land write -downs, fee deferrals or reductions, prioritization of available public funding to AHO sites. In addition, the City will process affordable projects on AHO sites at a priority or `fast track' level, and will consider flexible development standards that exceed the allowances under density bonus provisions, given the appropriate project. The overlay would be applied to properties zoned CC, CN, CP, RC, and VC, as well as certain residentially -zoned sites (see Exhibit II-14). Projects would also need to have a minimum project size of 1 acre, HOUSING 11-12 which would encourage lot consolidation and maximize the housing potential of vacant and underutilized sites. Housing built under the provisions of the overlay would also be subject to the development standards of the City's RH (High Density Residential) zone, which will be modified to be consistent with the AHO and create adequate development standards to facilitate densities established under the AHO (refer to Program 1.7). Projects that meet these standards and requirements would be permitted without a CUP or other additional discretionary review, consistent with GC Section 65583.2 (h) and (i). ■ Objective: Amend the Municipal Code to create an Affordable Housing Overlay that permits affordable housing (stand alone, next to, and/or above nonresidential uses) at densities of 20 to 24 units per acre for sites one acre or larger in size in the Community Commercial, Commercial Park, Neighborhood Commercial, Regional Commercial, and Village Commercial zones. The Overlay shall also apply specifically to residentially -zoned sites U1, U2, U3, U8, and 15 as identified in Tables C-1 and C-2. to accommodate at least 50% of the remaining regional housing need of 1,213 units for lower -income households. The City will apply RH (High Density Residential) zone standards to residential uses in those commercial zones. City staff will propose increasing the maximum height limit from 35 to 40 feet to facilitate three-story mixed -use development. Evaluate reducing or eliminating boo -foot buffer for affordable housing from the Highway 111 corridor. Evaluate financial and performance - based incentives and incorporate into the AHO where appropriate. ■ Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City completed the update of the zoning ordinance to include an Affordable Housing Overlay for designated sites, and to all commercially zoned lands. Because of the elimination of Redevelopment, no financial incentives were included in the AHO. The following g sites ("U" sites are underutilized and ' #" sites are vacant) are specifically called out here to demonstrate that the City's site inventory, along with other commercial lands to be subject to the AHO, will meet compliance requirements of state housing law and provide for significant excess capacity with respect to the City's RHNA. This program was successfully completed, and will not be extended to the 2014-2021 planning period. HOUSING SITE CURRENT ZONING (allowable density) SIZE (Acres) UNIT CAPACITY UI RL (4 units/ac) 4.9 98 U2 RL (4 units/ac) 4.8 96 U3 RL (4 units/ac) 7.5 150 U8 RM (8 units/ac) 19.6 392 15 RMH (12 units/ac) 14 280 5* CP (20 units/ac w/pro ram) 15.7 157 6* CR (20 units/ac w/pro ram) 11 110 A* CR (20 units/ac w/pro ram) 15.8 158 B* CR (20 units/ac w/pro ram) 17.6 176 Program H-1.5.c: Affordable and Mixed -Use Housing Development Standards. Residential uses at 20 to 24 units per acre will be permitted in several commercial zones (Program 1.5) and on specific residential sites following standards similar to those established for the High Density Residential zone. Higher density housing and vertically mixed -use development, including affordable housing projects, may benefit from regulations tailored to this use, especially with regard to parking standards. ■ Objective: Create development standards specific to affordable and mixed -use housing development. Coordinate with nonprofit and for profit developers to assist in identifying appropriate standards for multifamily and affordable housing. • Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance update included an increase in density to 20-24 units per acre on all commercial sites and identified high density residential sites. Development standards were included for these densities as part of the affordable housing overlay. The Mixed Use overlay is being undertaken in the second phase of the zoning ordinance update, and will be complete in the fall of 2013. As mixed use sites are not necessary for the City to meet its RHNA requirements, this portion of the zoning ordinance update is in response to the General Plan requirements, not the Housing Element RHNA needs. This program will be completed in the planning period, and will not be extended. HOUSING Program H-i.5.d: High Density Residential. Encourage future development or redevelopment of High Density Residential sites for multifamily housing by increasing the maximum density from 16 to 24 units per acre. Higher density housing may provide additional opportunities for housing types affordable to moderate and lower income households. This would be a land use action associated with the City's 2011 General Plan Update process. ■ Objective: Amend the Municipal Code to permit densities up to 24 units per acre in the High Density Residential zone. ■ Timing: February 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City's zoning ordinance has been amended to include densities of 20-24 units on high density residential properties. This program was successfully completed and will not be extended into the 2014-2021 planning period. Program H-i.5.e: Adequate Sites Monitoring. To ensure sufficient residential capacity for units affordable to lower - income households, the City will develop and implement an ongoing site monitoring procedure consistent with State Housing Law. The procedure shall provide that where development approvals on identified AHO sites result in a reduction of potential affordable units below the total residential capacity assumed in Tables C-1 and C-z (e.g. Site 15 in Table C-1 is developed below its projected density), the City will identify and analyze additional AHO sites to accommodate the shortfall of capacity remaining within the AHO. As the AHO will apply to all commercially zoned sites within the CC, CN, CP, RC, VC zones, the City may need to incorporate additional commercially zoned sites as part of the housing element inventory if any of the previously identified and analyzed AHO sites develop below their identified capacity. The City will report on the status and implementation of the AHO including development occurring on identified sites to determine whether Program incentives are providing the necessary catalyst to ensure that development is occurring consistent with the buildout projections described in Tables C-1 and C-z. As necessary, the City will revise this program to ensure the AHO remains a realistic and viable development strategy to accommodate the City's remaining regional need for lower -income households throughout the planning period. HOUSING ■ Objective: Develop and implement an Affordable Housing Overlay site monitoring procedure. ■ Timing: July 1, 2011 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The elimination of redevelopment and economic conditions resulted in only limited development in the City after the adoption of the AHO. The affordable housing projects currently under development for the 2014-2021 planning period did not require the use of the AHO. Further, the AHO is only applicable to one site in the land inventory for the 2014- 2021 planning period, and that site is not necessary for the City to meet its RHNA. This program will therefore be eliminated for the 2014-2021 planning period. Assist in the Development of Affordable Housing ❖ Policy H-2.1 Increase housing choices for lower and moderate income households. ❖ Policy H-2.2 Support public, private, and nonprofit efforts in the development of affordable housing. ❖ Policy H-2.3 Pursue a variety of forms of private, local, state, and federal assistance to support development of affordable housing. Program H-2.3.a: Housing Acquisition State law permits jurisdictions "buy down" existing residential projects by restricting previously above moderate income units for lower income households. The City may meet a portion of its RHNA by restricting existing projects or purchasing and deed -restricting foreclosed homes. ■ Objective: Purchase a portion or all of a project and restrict above moderate income units for lower income households ■ Timing: Complete purchase by June 2014 ■ Funding Source: LMIHF ■ Responsible Agency: Redevelopment Agency Evaluation: The City has partnered with a number of organizations to develop affordable housing. The Vista Dunes project was completed with Core Housing and Southern California Housing Development Corp. The Wolff Waters project was completed with the Coachella Valley Housing HOUSING 11-16 Coalition. Coral Mountain Apartments will be completed with Desert Cities Development. The City had an agreement with Habitat for Humanity for 7 homes. To date, the 7 homes have not been built. This program was successful and will be extended into the 2014-2021 planning period. Program H-2.3.b: Second Units and Guest/Employee Housing Encourage the development of second units, guest houses, and employee quarters through a promotional brochure designed to define a second unit, explain local development requirements, and describe the local entitlement process. This information will be provided at City Hall and on the City's website. Press releases and other free forms of media may also be used to inform the public of its availability. Second units and guest/employee quarters (referred to in La Quinta as "casitas") provide housing opportunities for lower income households. Employee quarters, per the City's Municipal Code, are rent-free and therefore affordable to extremely low income households. ■ Objective: Produce and distribute second unit brochure; facilitate the development of zoo second units and guest houses/employee quarters ■ Timing: Produce brochure by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City did not have the financial resources to produce a brochure to promote second units. In addition, second units and guest houses have been a popular feature of single family development both in planned communities and standard subdivisions. Finally, the City does not need second units in the 2014-2021 planning period to meet its RHNA. The need for a brochure to promote such units is unclear. This program will not be extended in the 2014-2021 planning period. Program H-2.3.c: Guest/Employee Housing Facilitate the development of rent-free guest and employee housing by permitting as an accessory use without a Minor Use Permit, and expanding the definition of guest and employee housing units to allow full bathroom and kitchen facilities. Full bathroom and kitchen facilities will improve the quality of life for lower and extremely low income employees in La Quinta. ■ Objective: Amend the Municipal Code to permit guest and employee housing without a Minor Use Permit and allow full plumbing facilities. HOUSING ■ Timing: March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendment completed in 2013 now allows bathrooms and kitchens in guest houses. This program was successfully completed and will not be extended into the 2014-2021 planning period. Program H-2.3.d: Density Bonus The City updated its density bonus law in 20o8, but will need to reflect additional changes brought through AB 2280. Density bonuses allow the development community to construct densities higher than the maximum allowed, and receive other incentives for providing affordable housing. ■ Objective: Update the Zoning Code to include amendments to density bonus law under Assembly Bill 228o and provide a summary of the changes on the affordable housing page of the City's website. ■ Timing: Adopt by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendment completed in June of 2013 updated the density bonus provisions to bring them into conformance with AB 2280. This program was successfully completed and will not be extended into the 2014-2021 planning period. Program H-2.3.e: Collaborative Partnerships The City shall meet with parties interested in affordable housing development to discuss types of land and financial incentives available and requirements for obtaining assistance, discuss appropriate sites for affordable housing, and foster professional collaboration between the City and affordable housing stakeholders. By supporting projects that maximize the leveraging of private, state, and federal financial resources the Agency's funds will assist in the development of more units. ■ Objective: Continue to collaborate with nonprofits and the development community to finance and develop affordable housing. ■ Timing: Project -by -project basis, by request, or on an annual basis in tandem with meetings associated with Program 2.8. HOUSING 11-18 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Redevelopment Agency Evaluation: Prior to the elimination of redevelopment by the State, the Agency worked with a number of organizations (please see evaluation of Program H-2.3.a, above) in generating affordable housing. With the elimination of redevelopment, the Agency no longer exists, and the City has no funds to assist developers in funding projects. However, the City has actively supported Tax Credit applications for the Washington Street and Coral Mountain apartment projects, and will continue to assist affordable housing developers in securing third party financing. This program will be extended into the 2014-2021 planning period. Program H-2.3. f: Affordable Housing Renter -to -Owner Transition Low Income Housing Tax Credit (LIHTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low income households. LIHTC projects can transition from rental to ownership units. The units must remain rentals for 15 years, at which time some projects convert to ownership units. Typically a portion or all of the rent paid for the 5 years prior to the conversion is put toward the purchase of the unit. This enables lower income households to invest in the property in which they have been living and benefit from its appreciation. Providing lower and moderate income households with affordable rental housing allows them to save money for the future home purchase. Giving a renter the opportunity to own their unit creates a sense of community responsibility, establishes a time -sensitive financial savings goal, and provides an opportunity to share in the appreciation of the project. Renter -to -owner affordable housing projects are long term projects that allow a household to remain in La Quinta and aspire to homeownership. Existing stalled condominium and townhome projects are prime opportunities for low income tax credits to be used for renter -to -owner programs. • Objective: Investigate the use of LIHTCs to finance affordable single-family attached rental development that can transition, after 15 years, into moderate income ownership housing. • Timing: Complete study by June 2010 • Funding Source: General Fund • Responsible Agency: Redevelopment Agency HOUSING Evaluation: Please see evaluation of Program H-2.3. f, above. The City has actively supported Tax Credit applications for the Washington Street and Coral Mountain apartment projects, and will continue to assist affordable housing developers in securing third party financing. This program will be extended into the 2014-2021 planning period. Program H-2.3.g: Affordable fordable Housing Renter -to -Owner Transition There are many resources that the City, nonprofits, or for -profit developers may utilize to subsidize the construction and maintenance of affordable housing. Some of the most prominent resources are described below. ■ Objective: Advertise other financial resources through the affordable housing page of the City's website, apply for grants and competitive loans, and form partnerships with the development community to obtain additional financial resources. ■ Timing: Update website with funding information and partnership opportunities every six months or earlier if appropriate. Funding resources are typically offered on an annual basis, most often at the start of the new fiscal year (either January or July). ■ Funding Source: General Fund ■ Responsible Agency: Planning Division Low Income Tax Credits Low Income Housing Tax Credit (LIHTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low income households. A minimum of zo percent of the units must be affordable to low income households and 40 percent of the units must be affordable to moderate income households. Community Reinvestment Act The Community Reinvestment Act provides favorable financing to affordable housing developers. The Redevelopment Agency, development community, and local, regional, and national banks are encouraged to work together to meet their obligations pursuant to the Community Reinvestment Act. California Housing Finance Agency Program The California Housing Finance Agency (CHFA) has three single-family programs for primarily moderate and middle income homebuyers: the Home Ownership Assistance Program and the Affordable Housing HOUSING Im Partnership Program. Each provides permanent mortgage financing for first-time homebuyers at below -market interest rates. HOME Funds HOME (Home Investment Partnership Program) is the largest Federal block grant distributed to state and local governments for the creation of lower income housing. Cities apply when Notices of Funding Availability are issued. Neighborhood Stabilization Program HUD's Neighborhood Stabilization Program makes emergency assistance grants available to local governments for the acquisition, redevelopment, and renting or resale of foreclosed properties at -risk of abandonment. Riverside County First -Time Homebuyers Program Continue participation in the Riverside County First -Time Homebuyers Program for low and moderate income households. Mortgage Credit Certificate The Riverside County Mortgage Credit Certificate Program is designed to assist low and moderate income first time homebuyers. Under the Mortgage Credit Certificate Program, first-time homebuyers receive a tax credit based on a percentage of the interest paid on their mortgage. This tax credit allows the buyer to qualify more easily for home loans, as it increases the effective income of the buyer. Under federal legislation, zo percent of the funds must be set aside for buyers with incomes between 75 and 8o percent of the county median income. Finance Agency Lease -Purchase Program Riverside/San Bernardino County Housing Finance Agency Lease Purchase Program provides down payment assistance and closing costs for eligible households up to 140 percent of the area median income. Housing Choice Voucher (formerly Section 8) Referrals Housing Choice Vouchers allow lower income households to use rental subsidies anywhere in the County, including La Quinta. Evaluation: Please see evaluation of Program H-2.3. f and H-2.3.e, above. The City has actively supported Tax Credit applications for the Washington Street and Coral Mountain apartment projects, and will continue to assist affordable housing developers in securing third party HOUSING I I-21 financing. This program will be extended into the 2014-2021 planning period. Program H-2.3.h: Sweat Equity and Shared Equity Sweat equity and shared equity programs provide lower and moderate income households with ownership assistance. Sweat equity refers to the exchange of time and effort, usually in the form of construction activities, for an affordable ownership opportunity. Shared equity refers to the exchange of a portion of the home appreciation for an affordable ownership opportunity. ■ Objective: Continue to work with organizations that offer sweat and shared equity housing programs to lower and moderate income households in La Quinta. Meet with organizations annually or more frequently (if requested or advantageous) to identify opportunities for coordinated efforts or potential housing projects. ■ Timing: Annual meetings, ongoing coordination ■ Funding Source: LMIHF; approximately $300,000 per year is set aside specifically for the Building Horizons program ■ Responsible Agency: Redevelopment Agency Evaluation: The City has worked with both Habitat for Humanity and the Coachella Valley Housing Coalition in the development of sweat equity homes in the past. The City had an agreement with Habitat for Humanity for 7 homes. To date, the 7 homes have not been built. However, this program has been successful in the past and will be extended into the 2014-2021 planning period. Program 2.3.i: Foreclosed Home Purchase Investigate the feasibility of purchasing foreclosed homes and offering them to residents at prices affordable to low and moderate income households. HUD's Neighborhood Stabilization Program makes emergency assistance grants available to local governments for the acquisition, redevelopment, and renting or resale of foreclosed properties at -risk of abandonment. ■ Timing: Complete study by June 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Redevelopment Agency Evaluation: The City applied for but did not receive NSP funds. However, the City did purchase five foreclosed homes in the Cove, which were rehabbed for rental/sale. Given the upward trending of the housing HOUSING II-22 market, this program will not be extended into the 2014-2021 planning period. Program 2.3.j: Second Trust Deed Loan Program In second trust deed loan programs jurisdictions and agencies assist lower or moderate income households purchase a home by providing a mortgage subsidy. The City will explore utilizing a silent second trust deed program to facilitate homeownership. ■ Timing: Complete study by June 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Redevelopment Agency Evaluation: The Agency manages 419 existing second trust deeds for lower and moderate income homeowners. There were no funds available to add to the program, and with the elimination of redevelopment, no additional funds are expected. This program will not be extended into the 2014-2021 planning period. Program H-2.3.k: Housing Related Parks Program The Department of Housing and Community Development is preparing to establish a grant program to assist in the development of parkland in lower income areas. The City will track the process of the Housing Related Parks Program and seek funding should the City qualify under the finalized program guidelines. ■ Timing: Periodically review HCD website, program availability to be determined by HCD ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Redevelopment Agency Evaluation: The Community Services Department tracks all sources of grant funding for park acquisition and improvements. The focus on this particular program does not seem appropriate, given the number of different sources available for park grant programs. This program will not be extended into the 2014-2021 planning period. HOUSING I I-23 Removal of Governmental Constraints to Housing ❖ Policy H-3.1 Remove unnecessary regulatory constraints to enable the construction or rehabilitation of housing that meets the needs of La Quinta residents, including lower income and special needs residents. Evaluation: The City Planning Department monitors all municipal code amendments to assure that they do not impose a constraint on the development of affordable housing, and will continue to do so. This policy will be extended into the 2014-2021 planning period. ❖ Policy H-3.2 Coordinate the development of affordable housing with the provision of key utilities to ensure prompt and adequate service. Evaluation: All new projects are routed to the City's utility providers for review and comment. Further, infrastructure for utilities is in place throughout the City, and extensions generally consist of laterals and similar minor additions to the system. This policy will be extended into the 2014-2021 planning period. ❖ Policy H-3.3 Incentivize the development of affordable housing to facilitate the development of housing for the City's lower and moderate income households. Program H-3.3.a: Assessment District/Water/Sewer Subsidy Program The City's Assessment District/Water/Sewer Subsidy Program alleviated some of the financial hardship on lower and moderate income households by providing assistance to cover the cost of assessment districts, plumbing installation fees, and sewer connection fees. ■ Objective: Investigate funding resources for reinstating the Assessment District/Water/Sewer Subsidy Program during the planning period. ■ Timing: December 2010 ■ Funding Source: Study funded by General Fund ■ Responsible Agency: Redevelopment Agency Evaluation: Due to a lack of funding resources, the Agency did not assist any lower income households under this program during the 2oo6-2014 planning period. With the elimination of redevelopment by the State, no HOUSING M funds are available for the future funding of the program This program will not be extended into the 2014-2021 planning period. Program H-3.3.b: Priority Water and Sewer Service In compliance with state law, the Coachella Valley Water District (CVWD) must create procedures to provide priority water and sewer service to lower income residential project. The law also prohibits the denial or conditioning the approval of service without adequate findings, and requires future water management plans to identify projected water use for lower income residential development. ■ Objective: Route the adopted Housing Element to the CVWD and notify them of changes and future updates to the Housing Element. ■ Timing: Upon Housing Element adoption ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: CVWD is aware of the requirements of law, and has never, to the City's knowledge, denied a project or prevented connections for an affordable fordable housing project in the City. The City will continue to work with CVWD in the processing of applications in a timely manner. This program will be extended into the 2014-2021 planning period. Program H-3.3.c: Review Permitting Fees and Processing Times Study permitting fees and processing times to identify any potential opportunities to streamline the process and reduce the cost of the entitlement process for projects with an affordable housing component. ■ Objective: Identify means of reducing fees and processing times for projects with an affordable housing component. ■ Timing: Complete study by June 2011 ■ Funding Source: General plan ■ Responsible Agency: Planning Department Evaluation: The City expects to complete an overhaul of its application process and a comprehensive review of Planning fees during the planning period. The Planning Department applications were streamlined and simplified to aid developers in filling out the forms. The fee schedule now reflects the actual costs of processing applications. This program was completed, and will not be extended into the 2014-2021 planning period. HOUSING II-25 Program H 3.3.d: Reduced Parking Standards There are several potential opportunities to reduce parking standards for special types of development in La Quinta. While the City already has special parking standards for multifamily senior housing, there is potential to further reduce those requirements, particularly for lower and moderate income senior housing. The compact, mixed -use character of the Village area may also foster opportunities for parking reductions or joint -use opportunities. Lower and moderate income households may own fewer vehicles than above moderate income households, and be more inclined to walk or use public transportation. Incentives such as reduced parking requirements could be offered for affordable housing developments. ■ Objective: Study the potential impacts of adopting reduced parking requirements or shared parking standards for senior housing and housing in the Village, particularly for projects serving lower and moderate income households. ■ Timing: Coordinate with 2009/2o11 General Plan update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The second phase of zoning ordinance amendments not related to the provision of housing is currently under way. As part of this phase, the City is considering the inclusion of maximum (rather than minimum) parking requirements, particularly for affordable and senior housing. In addition, the City completed a parking study for the Village in 2oo6. This program will be extended into the 2014-2021 planning period. Program H-3.3.e: Encourage Lot Consolidation Several small lots in the Village Commercial would have improved development potential through lot consolidation. The City will study, identify, and adopt regulatory incentives to encourage and facilitate lot consolidation. Potential incentives include fee deferral or reductions, City -assisted parcel assemblage and mergers, parking requirement reduction, and relief from various other development standards that could potentially increase the cost of the project. ■ Objective: Identify opportunities and adopt incentives for lot consolidation in the Village Commercial zone • Timing: July 1, 2012 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department HOUSING II-26 Evaluation: Due to the difficulties associated with getting multiple property owners to work together on consolidation of parcels, the RDA embarked on a property purchase strategy toward consolidation of City - owned parcels during the planning period for potential future projects. Specific examples are in the Dune Palms/Westward Ho area in the north part of the City, and in the Village area. Many of these parcels have been consolidated by the City, but currently, the acquired sites are tied up due to the elimination of Redevelopment. This program will be extended into the 2014-2021 planning period. Preservation and Rehabilitation of Housing Stock ❖ Policy H-4.1 Protect the quality of La Quinta's neighborhoods through the rehabilitation of both affordable and market -rate homes. Evaluation: There were no rehab programs funded during the Planning period. However, the City did purchase five foreclosed homes in the Cove, which were rehabbed for rental/sale. The City does not envision having funds for such programs in the near future. This program will not be extended into the 2014-2021 planning period. ❖ Policy H-4.2 Promote financial and technical assistance to lower and moderate income households for housing maintenance and improvements. Evaluation: The City did not have available funding for this level of assistance, and relied on Riverside County and other third -party programs to fill this need. Although redevelopment funds have been eliminated, and can no longer be applied to this program, the City will continue to monitor third party programs, including County assistance programs, and direct households to these programs when appropriate. This program will be extended into the 2014-2021 planning period. ❖ Policy H-4.3 Encourage the retention and rehabilitation of existing single-family neighborhoods and mobile home parks that are economically and physically sound. ❖ Policy H-4.4 Enhance neighborhoods that presently provide affordable housing with drainage, lighting and landscape amenities, and parks and recreation areas. HOUSING 11-27 Program H-4.4.a: Residential Rehabilitation Program The Residential Rehabilitation Program provides low interest loans up to $25,000 for property and structural repairs and rehabilitation of single-family homes and small multifamily projects. The Residential Rehabilitation Program encompasses a code compliance component to assist lower income homeowners that have been cited for minor code violations. ■ Objective: Revise the program to meet current needs, as determined in the Redevelopment Agency Implementation Plan, to be updated in zoog. Assist zo lower income households. ■ Timing: 20o6-2014 ■ Funding Source: CDBG and LMIHF ■ Responsible Agency: Redevelopment Agency Evaluation: No housing units were assisted under this program during the Planning period. With the elimination of redevelopment, there are no funds available for this program. This program will not be extended into the 2014-2021 planning period. Program 4.4.b: Housing Condition Monitoring To better understand the City's housing needs the quality and condition of the housing stock must be inventoried on a regular basis. The inventory should focus on older neighborhoods, such as those south of Calle Tampico, west of Washington Street, and north of Highway 111. ■ Objective: Maintain an inventory of housing conditions (updated approximately every five years) to enable the City to properly target Code Compliance and rehabilitation resources. ■ Timing: Complete by January 1, 2014 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Code Compliance Evaluation: The housing in the City was evaluated in 2007. In addition, Code Compliance monitors units in disrepair, and implements corrective action when necessary. The survey will require updating at the beginning of the next planning period. This program will be extended into the 2014- 2021 planning period. HOUSING II-28 Program H-4.4.c: County of Riverside Senior Residential Rehabilitation The Minor Senior Home Repair program allocates grants up to $250 per year for lower income seniors for minor housing repairs, such as painting doors or trim, or repairing a window. The Enhanced Senior Home Repair Program provides major rehabilitation and repair for low income seniors, providing a one-time grant for repairs to homes owned and occupied by seniors and/or persons with disabilities. The maximum level of assistance for this program is $3,000 per year. ■ Objective: Continue to refer code violators and interested parties to the County of Riverside Minor and Enhanced Senior Home Repair programs and other local resources. Assist homeowners in completing applications as necessary. ■ Timing: 20o6-2014, on a case -by -case basis ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Code Compliance Division Program H-4.4.d: County of Riverside Home Repair Grant The County of Riverside Economic Development Agency Home Repair Program provides lower income households with up to $6,000 for home repairs such as a new roof, new air -conditioner, or a handicap ramp. As a jurisdiction in Riverside County, lower income La Quinta households are eligible for this grant. ■ Objective: Refer code violators and interested parties to the County of Riverside for home repair grants. ■ Timing: 20o6-2014, on a case -by -case basis ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Code Compliance Division Evaluation: To the extent that these County programs have been funded, the City has referred homeowners to the appropriate County staff. These programs will be extended into the 2014-2021 planning period. Program H-4.4.e: Rehabilitation Resources List Lower and moderate income homeowners may need assistance in affording important home repairs and improvements. The City can assist these households by compiling and sharing a listing of local, state, and federal programs offering rehabilitation assistance. ■ Objective: Provide a rehabilitation resources list on the affordable housing and code compliance pages of the City's HOUSING website. Use the list, in online or printed form, as a reference for code violators. ■ Timing: Create list by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department, Code Compliance Division, and Redevelopment Agency Evaluation: The City did not implement this program due to lack of resources resulting from staff cuts. However, the program has the potential to be a good resource for homeowners, and should be considered in the future. This program will be extended into the 2014- 2021 planning period. Equal Housing Opportunity ❖ Policy 5.1 Provide the regulatory framework to create an environment in which housing opportunities are equal. Evaluation: The City regularly reviews and amends its Municipal Code to assure that all aspects of it comply with the law. This activity will continue. This policy will be extended into the 2014-2021 planning period. •'• Policy 5.2 Encourage and support the enforcement of laws and regulations prohibiting discrimination in lending practices and in the sale or rental of housing. Evaluation: The City monitors housing complaints and refers all complaints to the Riverside County Fair Housing Council, which has jurisdiction over these matters. This policy will be extended into the 2014- 2021 planning period. ❖ Policy 5.3 Encourage support services for the Coachella Valley's senior and homeless populations through referrals and collaborative efforts with non -profits and other jurisdictions. Evaluation: The City did not implement this program due to lack of staff resources resulting from staff cuts. However, the program has the potential to be a good resource for homeowners, and should be considered in the future. This policy will be extended into the 2014-2021 planning period. HOUSING II-30 ❖ Policy 5.4 Assist in the creation of a continuum of care for the homeless population and those transitioning into permanent housing. Evaluation: While the City has supported the CVAG Homeless Committee efforts, it did not provide funding for Roy's Desert Resource Center, a go bed homeless facility located in Palm Springs. Instead, during the 2oo6- 2014 planning period, the City committed $50,000 toward construction of a new facility for the Coachella Valley Rescue Mission, which provides homeless and other services. The City also committed $50,000 to Martha's Village and Kitchen for a new facility for that organization. This program will be extended into the 2014-2021 planning period. ❖ PORY 5.5 Improve quality of life for disabled persons by facilitating relief from regulatory requirements that may create barriers to accessible housing and promoting universal design. Evaluation: The zoning ordinance amendments completed in June of 2013 included universal design principles and provisions for a reasonable accommodation review process. The City continues to facilitate development of accessible housing for all its residents. This program will be extended into the 2014-2021 planning period. Program H-5.5.0: Zoning Code and Discrimination The City of La Quinta seeks to provide fair regulations to guide development within the community. The City must ensure that amendments to the Zoning Code do not enact regulations causing or contributing to discrimination against any residential development because of race, sex, religion, national origin, marital status, or disability of its owners or intended occupants. ■ Objective: Analyze proposed amendments to the Zoning Code to prevent discriminatory changes. ■ Timing: 20o6-2014 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June Of 2013 did not contain or uncover any discriminatory provisions. This program was completed and will not be extended into the 2014-2021 planning period. HOUSING Program H-5.5.b: Shared Housing a Riverside Experience (SHARE) SHARE is a nonprofit organization whose purpose is to promote home sharing. Home sharing programs provide referral/matching services to people with limited incomes seeking housing, and homeowners who wish to share their home. SHARE targets senior citizens and estimates that 50 percent of these matches involve economically disadvantaged groups, with 25 percent of these matches involving very low income households. ■ Objective: Encourage participation in home sharing, particularly for lower income seniors, by promoting the SHARE program on the affordable housing page of the City's website and at the La Quinta Senior Center. ■ Timing: Update website and distribute information to the Senior Center by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department and Senior Center Evaluation: SHARE is inactive, and does not appear to be providing services. However, the Senior Center makes every effort to refer its clients to resources available for seniors. This program will not be extended into the 2014-2021 planning period. Program H-5.5.c: Manufactured Housing Assistance Program Manufactured homes on permanent foundations are a cost effective alternative to the traditional single-family detached home. ■ Objective: Continue to maintain the potential for manufactured homes in residential designations as an affordable housing resource (formerly Mobile Home Park Assistance Program). ■ Timing:20o6-2014 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June Of 2013 did not change the current zoning provisions that allow manufactured housing on single family lots. There is no need for this program, and it will not be extended into the 2014-2021 planning period. HOUSING II-32 Program H-5.5.d: Reasonable Accommodation Ordinance Disabled individuals or those acting on their behalf to may need to request reasonable accommodation from land use, zoning, or building rules, practices, and/or procedures of the City in order to obtain adequate housing. ■ Objective: Adopt a process for reasonable accommodation, including a provision of assistance in making the request, as well as for appealing a determination. ■ Timing: Adopt ordinance by March 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June of 2013 included a reasonable accommodation section in the Residential standards. This program was completed and will not be extended into the 2014-2021 planning period. Program H-5.5.e: Universal Design Universal design refers to barrier -free and accessible design that may incorporate personal assistance technology. Universal design creates spaces that are accessible to persons with disabilities, but also designed for general use. Broad -application of universal design standards would result in new and rehabilitated homes that are appropriate for an entire lifecycle, from infant to elder. By incorporating universal design features the ability of the housing stock to meet existing and future needs would be greatly improved. ■ Objective: Review existing development standards and evaluate the potential for requiring new development and/or rehabilitation to utilize universal design features. ■ Timing: Coordinate with 2009/2011 General Plan Update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June of 2013 incorporated universal design principles in the development standards added to the residential sections of the document. This program was completed and will not be extended into the 2014-2021 planning period. Program H-5.5.. Regional Facilities for the Homeless Continue to support and collaborate with the Coachella Valley Association of Governments Homelessness Committee efforts to create a regional homeless facility that will provide housing as well as HOUSING II-33 supportive services. The Strategic Plan created by the Homelessness Committee establishes a continuum of care for the Coachella Valley. ■ Timing: Council voted to support in 20o8; City staff will continue to collaborate with CVAG throughout the planning period (2oo6-2014) ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: While the City has supported the CVAG Homeless Committee efforts, the City did not participate in funding Roy's Desert Resource Center ("Roy's"), which is in the west end of the Coachella Valley. Instead, the City committed $50,000 in funding towards a new facility for the Coachella Valley Rescue Mission, which currently shelters 150+ men, women and children and is located in Indio. The City also committed $50,000 to Martha's Village and Kitchen, also toward construction of a new facility. The City Council believes these facilities to be a more logical service extension for La Quinta's homeless, due to its proximity to La Quinta. Continuing evaluation and support of these programs will be extended in the 2014-2021 planning period. Program H-5.5.g: Emergency Shelters, Transitional Housing, and Permanent Supportive Housing Recent state legislation (Senate Bill z) has provided direction for local governments to address the housing needs of the homeless. Emergency Shelters, Transitional Housing, and Permanent Supportive Housing are all components of a curriculum of care for the homeless. Although the Riverside County Homeless Census did not identify any homeless population in La Quinta, the City seeks to comply with SB z by contributing to efforts to meet the needs of the homeless throughout the region. Emergency shelters are usually the first step in a homeless continuum of care program designed to allow homeless people a temporary place of stay. Although the Municipal Code lists emergency shelters as a permitted use in all commercial zones, no definition is provided for this use. Furthermore, transitional shelters are defined as temporary or more emergency -basis uses in the Municipal Code and are conditionally permitted in the Regional Commercial (CR) and Major Community Facilities (MC) zones. However, actual transitional housing typically accommodates homeless people for up to two years as they stabilize their lives and does not meet emergency needs. Transitional housing includes training and services that are vital for rehabilitating and enriching the lives of the formerly homeless. Transitional housing HOUSING II-34 facilities provide families and individuals with a safe place within which to rebuild their lives and prepare for independence. Permanent supportive housing is affordable housing with on- or off -site services that help a person maintain a stable, housed, life. This use is not currently addressed in the Zoning Code. ■ Objective: Update the Zoning Code to include legally adequate and appropriate definitions for emergency shelters, transitional housing, and permanent supportive housing. Emergency shelters will be permitted without discretionary approval in the MC zone and conditionally permitted in the CR zone. Transitional and supportive housing types will be permitted as any other residential use in residential zones. Development and operation standards will be developed in compliance with Senate Bill 2 to ensure proper construction or building adaptation for emergency shelter use. ■ Timing: Coordinate with 2009/2011 General Plan Update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The zoning ordinance amendments completed in June of 2013 included legally adequate definitions of emergency shelters, transitional housing and supportive housing. The amendments also continued emergency shelters as permitted uses in all commercial zones, and added transitional and supportive housing in the residential zones consistent with the regulations for similar uses (such as group homes). This program was completed and will not be extended into the 2014-2021 planning period. Program H-5.5.h: Fair Housing Referrals Fair housing organizations provide dispute resolution and legal assistance to tenants and landlords in conflict. Such services are particularly important for lower and moderate income households unable to afford counsel. ■ Objective: Continue to refer tenants and landlords to the Fair Housing Council of Riverside County. Provide information on fair housing resources on the City's website and at City Hall. Identify and coordinate with local nonprofits, service organizations and community groups that can assist in distributing fair housing information. ■ Timing: Referral service as needed. Information to be placed on website and local groups identified by December 2olo HOUSING II-35 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City refers all fair housing issues to the Fair Housing Council, and will continue to do so. Information regarding the Council is available at city hall, the senior center and other locations in the City. This program will be extended into the 2014-2021 planning period. Program H-5.5.i: Directory of Services While numerous services are available to special needs and lower income households, it can be difficult to readily have access to these resources. A directory provides the contact information necessary to seek housing assistance. ■ Objective: Develop an online directory of services and information to provide La Quinta residents with contact information for community organizations and service providers that address special needs. ■ Timing: Update website by June 2010 ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Evaluation: The City maintains a partial list of housing resources/services but did not complete this program due to loss of staff assigned to housing programs, associated with the elimination of redevelopment. The directory, however, could be a valuable resource. In addition, the City has recently hired a Housing Coordinator. This program will be extended into the 2014-2021 planning period. Energy and Water Conservation ❖ Policy H-6.1 Promote higher density and compact developments that increase energy efficiency and reduce land consumption. Evaluation: The new General Plan promotes mixed use development, and the zoning ordinance is being amended to include standards for mixed use development. These changes will be completed by the end of 2013. The City also continues to promote energy efficiency through its Greenhouse Gas Reduction Plan, and its Green and Sustainable La Quinta Program. This policy will be extended into the 2014-2021 planning period. HOUSING II-36 ❖ Policy H-6.2 Facilitate housing development and rehabilitation that conserves natural resources and minimizes greenhouse gas emissions. Evaluation: The new General Plan promotes greenhouse gas reduction in the Livable Community Element. The City also continues to promote its Greenhouse Gas Reduction Plan, and its Green and Sustainable La Quinta Program. This policy will be extended into the 2014-2021 planning period. ❖ Policy H-6•3 Encourage and enforce green building regulations or incentives that do not serve as constraints to the development or rehabilitation of housing. Evaluation: The new General Plan promotes green building in the Livable Community Element. The City also continues to promote its Greenhouse Gas Reduction Plan, and its Green and Sustainable La Quinta Program. This policy will be extended into the 2014-2021 planning period. ❖ Policy H-6.4 Focus sustainability efforts on measures and techniques that also assist the occupant in reducing energy costs; therefore reducing housing costs. Evaluation_ The City has identified several residential developments that incorporate sustainable efforts and help reduce the occupant's energy costs. These properties include: Vista Dunes - The Agency's team prepared site and building plans that embraced green and sustainable design principles. The project received LEED Platinum certification. The principles included: • Thermal chimneys to better ventilate the dwellings • Tankless water heaters to reduce energy/water consumption • Dual flush toilets to reduce water consumption • Low flow and oxygenated showerheads and faucets • Photovoltaic solar panels for each dwelling to reduce utility costs • Landscaped trellises to shelter south and west facing walls from the desert sun • Radiant barrier roof sheathing • Drought tolerant indigenous landscaping Coral Mountain Apartments - The Coral Mountain Apartment community will incorporate environmentally sustainable concepts and efficiency HOUSING 11-37 measures. While it is not seeking LEED certification, it is being designed to target LEED Silver standards. Design of the buildings includes many energy and water -efficient amenities, such as solar tubes to provide indoor area lighting for many of the units, low -flow toilets and fixtures, and recirculating water heaters. A hydronic HVAC system will be employed, which circulates hot water from the water heating system, using forced air to heat the individual units. Four of the buildings will incorporate roof -mounted photovoltaic solar panels; additional panels are being placed on top of carport structures. Washington Street Apartments - This project is completing the final phases of the City's review process. It consists of 68 new units and 72 existing units, which will be rehabilitated. The project includes sustainable architectural design such as cement plaster finish, aluminum windows and thermal chimneys. Carport structures will incorporate photovoltaic solar panels This policy will be extended into the 2014-2021 planning period. ❖ Policy H-6.5 Use and encourage emerging technologies to reduce high demands for electricity and natural gas including use of passive solar devices and where feasible other renewable energy technologies (e.g., biomass, wind, and geothermal). Program H-6.5.0: Green and Sustainable La Quinta Program The City Council has identified the conservation of natural resources as a critical concern in La Quinta. In July zoo? the City Council directed staff to initiate the development of the Green and Sustainable La Quinta Program, a comprehensive program to reduce the environmental impact of existing structures, rehabilitation efforts, and new construction. Progress to date includes participating in local energy reduction and water conservation programs. The formal Green and Sustainable Program may include energy conserving standards for street widths, streetscapes, and landscaping to reduce heat loss. Energy consumption in existing homes could be improved by incentivizing energy -efficient retrofits prior to the resale of homes. ■ Objective: Adopt new green goals, policies, and programs that accurately represent the City's direction in resource conservation and minimizing greenhouse gas emissions. Adopt design standards for residential and commercial structures that encourage solar protection to directly result in energy conservation. HOUSING II-38 ■ Timing: July 2012; or concurrent with 2009/2011 General Plan Update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Program H-6.5.b: Energy Conservation Partners In working toward a sustainable La Quinta, the City and its residents will need to collaborate with utilities and service providers. Partnerships with the Coachella Valley Water District, Imperial Irrigation District, Southern California Gas, Burrtec Waste and Recycling Services, Sunline Transit District, Coachella Valley Association of Governments, Southern California Association of Governments and other entities will be an important component of making La Quinta a more sustainable city. ■ Objective: Continue to meet with and seek insight from utilities, service providers, and other entities involved in energy conservation efforts appropriate for La Quinta. ■ Timing: 20o6-2014 ■ Funding Source: General Fund ■ Responsible Agency: City Manager's Office/ Planning Department Evaluation: The City is working with local conservation partners to implement the adopted Green and Sustainable La Quinta Program, including Burrtec Waste & Recycling, Coachella Valley Water District, Imperial Irrigation District, and Southern California Gas Company. The City maintains an inventory of sustainable goals and accomplishments on the Going Green website. The following table identifies current and planned goals of the Green and Sustainable La Quinta Program. HOUSING II-39 The City of La Quinta Sustainability Goals and Accomplishments In - ProOcress/ Goals and Accomplishments Goal Completed Going Identify Greenhouse Gas Emissions inventory baselines and specific targets for improvements, on a X regional and local level Expand sustainability outreach/education including X website "Going Green" section Initiate Smart Growth/LEED Training for selected staff X members Develop policy and plan for l00% conversion to X clean/green fleet Initiate a Pilot AB 811 Loan Program X Facilitate energy audits for top uses and support X energy efficiency actions Implement a Curbside Household Hazardous Waste X Program Expand the number of Household Hazardous Waste X Events at City Hall/Corporate Yard Develop an Environmentally Preferable Purchases and X Practices Policy Expand outreach and education for waste reduction and recycling, water and natural gas conservation, X and energy efficiency Implement energy efficiency improvements of City facilities as recommended by Imperial Irrigation X District Identify water usage benchmarks and develop water X conservation goals Jointly (City and IID) offer an energy product (Energy X Meter) to city residents at a reduced cost Investigate program implementation of: food waste X recycling and non -controlled medication disposal Expand promotion of commercial recycling program X Conduct Green Workshops and coordinate energy X audits with Homeowners associations Seek opportunities for energy and environmental X grants, including a bike path grant Install LED flash warning devices: Adams St., X Eisenhower Dr., and Avenida Bermudes Replace video detection system at three intersections X Establish a Compressed Natural Gas Fueling station X (Fire Station) Host shred day events X Participate in Desert Cities Energy Partnership to X achieve funding for energy programs and events This program is successful and will be extended into the 2014-2021 planning period. HOUSING M Program H-6.5.c: Cooperative Water Management Program for Cove Homes The Redevelopment Agency upgrades the plumbing, heating, air conditioning, and other equipment in their Cove Homes during the rehabilitation process prior to sale. In 2oo8 the City Council approved collaborative efforts between the Agency and Coachella Valley Water District. The Agency is participating in the Coachella Valley Cooperative Water Management Program to improve water efficiency in Cove Homes. ■ Objective: Implement the Cooperative Water Management Program for the Agency's Cove Homes and evaluate the feasibility of implementing changes to existing landscape and irrigation when Cove Homes are sold. ■ Timing: 20o6-2014 ■ Funding Source: LMIHF and/or CVWD program funds ■ Responsible Agency: Redevelopment Agency Evaluation: The Cooperative Landscape Water Management Program was composed of three parts; Residential Turf Conversions (individual), HOA/Commercial Turf Conversions, and commercial properties. The City's first landscape conversion took place on August 26, 2oo8. As of March 2010, 71 La Quinta residents (including z RDA owned homes) had completed the program, which went unfunded after 2011. With the elimination of redevelopment, it is unlikely that the City will be able to fund this program, and it will not be extended into the 2014-2021 planning period. Program H-6.5.d: Landscape Water Management Program In 2oo8 the City formed a partnership with the Coachella Valley Water District to start a citywide Landscape Water Management Program. The program provides affordable landscape design and consulting services to assist homeowners in making landscaping improvements to reduce sprinkler runoff and reduce the amount of water used for landscaping. In accordance with the program the City amended the Municipal Code to provide more restricted water efficient landscaping standards. The City adopted a landscape water management program that will reimburse homeowners up to $1,000 to replace inefficient landscape design, materials, and irrigation systems. ■ Objective: Assist 5o households to reduce water waste and water use for landscaping through the Landscape Water Management Program. ■ Timing: 20o6-2014 HOUSING ■ Funding Source: General Fund, CVWD program funds, potential AB 811 special assessment district funds ■ Responsible Agency: City Manager's Office/ Planning Department Evaluation: As previously mentioned, the Cooperative Landscape Water Management Program assisted 71 homes, including the installation of 301 weather -based irrigation controllers as of March 2010. It should be noted that the program assisted all 27 RDA owned homes. Funding for the program ended December 17, 2012. With the elimination of redevelopment, it is unlikely that the City will be able to fund this program, and it will not be extended into the 2014-2021 planning period. Program H-6.5.e: Imperial Irrigation District Programs The Imperial Irrigation District (IID) is proactive in energy savings via conservation programs, product rebates, and general tips. An average home owner can save up to 10 percent on energy/energy bills by taking advantage of IID programs. Home owners can utilize the free "Check Me!" program, which checks the refrigerant charge and airflow of their air conditioning/heating units. IID also offers a rebate on the purchase of higher efficiency air conditioning units, high efficiency refrigerators, programmable thermostats, and ENERGY STAR equipment. City staff has held several meetings with IID representatives to discuss opportunities for collaboration to conserve energy in La Quinta, including water management opportunities for golf courses and golf - oriented communities. ■ Objective: Follow up with IID to establish and market a plan to participate in programs that are most beneficial to La Quinta residents and homeowners; continue to develop HVAC retrofitting program with IID. ■ Timing: Adopt plan by June 2010 ■ Funding Source: General Fund, IID program funds, and potential AB 811 special assessment district funds ■ Responsible Agency: City Manager's Office/ Planning Department Evaluation: The City's Going Green website provides information on IID rebates through links to their rebate website, including the Residential ENERGY STAR rebate program. IID is continuing to offer free, in -home residential and commercial energy audits and follow up list of recommendations intended to reduce energy consumption and the monthly bill. The City works through its partnership with IID and markets this program through meetings with Homeowners' Association boards HOUSING II-42 and various City sponsored events to encourage La Quinta residents and business to sign up for these free energy audits. This program is successful and will be extended into the 2014-2021 planning period. Program H-6.5. f: Weatherization Assistance The Federal Department of Energy's Weatherization Assistance Program, in conjunction with state and local programs, provide low or no cost weatherization and insulation services to reduce the heating and cooling costs for low income households. ■ Objective: Encourage low income homeowners or renters to apply for free energy audits, home weatherization, and utility rebate programs by advertising available programs on the City's website and at City Hall. ■ Timing: Advertise by March 2010 ■ Funding: General Fund ■ Responsible Agency: Building and Safety Department/ City Manager's Office Evaluation: The City is currently advertising available programs for free energy audits, home weatherization, and utility rebate programs on the City's website and at City Hall through handouts/flyers/posted info. This program is successful and will be extended into the 2014-2021 planning period. Public Participation California Government Code requires that local governments make a diligent effort to achieve public participation from all economic segments of the community in the development of the housing element. The City's public outreach efforts focused on community and stakeholder workshops, information dissemination through the City's website, electronic mail notifications and public hearings. Together, this input helped the City understand and respond to the housing needs of the community. Community and Stakeholder Workshops Personal invitations were sent to local and regional development entities, advocacy groups and interested parties via mail. In addition, the workshops were advertised on the City's web site, and as display ads in the Desert Sun newspaper. Two workshops were held: one for stakeholders and one for residents at large. The comments and input received from the stakeholders centered on the economic hardship created when redevelopment was eliminated HOUSING 11-43 by the State. The development community is struggling to make up the gap left by the elimination of set aside funds. The comments received from residents centered mostly on aesthetic issues, including in particular building height, and maintaining the z story limits and allowing underground parking to provide for density. State Review and Public Hearings The Draft Element was submitted to the California Department of Housing and Community Development (HCD) for review and certification. The City has received and responded to review comments from HCD to address their concerns. Once the document has been certified by HCD, the Housing Element Update will involve a noticed public hearing before both the Planning Commission and City Council, with the documents available for public review at City Hall and on the City's website. HOUSING VISION STATEMENT A Housing Vision Statement was developed based on the key housing issues and through cooperation of the citizens and elected officials of the City of La Quinta. The housing policies and programs included in this Housing Element are designed to bring this vision to fruition. "The City of La Quintu's vision of the future for housing focuses on encouraging the provision of suitable housing for all City residents while maintaining and enhancing the City's high quality of life for its residents. Through its housing programs, the City will facilitate the maintenance and improvement of its existing housing stock resources, and encourage the production of a variety of new housing to meet residents' needs, while preserving the overall character of the City." HOUSING COMMUNITY PROFILE The housing needs of the City are determined by characteristics of the population (age, household size, employment, and ethnicity) and the characteristics of housing available to that population (i.e., number of units, tenure, size, cost, etc.). This section explores the characteristics of the existing and projected population and housing stock in order to identify potentially unmet housing needs in La Quinta. This information provides direction in updating the City's Housing Element goals, policies, and programs. The demographics used in this section are derived from US Census data for 1990, 2000, 2010; US Census American Community Survey 3 and 5 year estimates data, California Department of Finance, and the City of La Quinta. Population The City of La Quinta is one of nine cities in the Coachella Valley subregion of Riverside County. The Coachella Valley includes the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage, as well as large areas of unincorporated Riverside County. La Quinta ranks high in population growth among California's 471 cities. During the 199os, the population of La Quinta grew by 111.3 percent, making it the fastest growing city in the Coachella Valley at the time. The number of residents in the City increased from 11,215 to 23,694 between 1990 and 2000. The population further increased to 37,467 by 201o, a smaller but still significant increase of 58.10 percent. The absolute increase in population for cities in the Coachella Valley provides another perspective for analysis when size is taken into consideration. For example, Indio grew by the greatest number of people from 2000 to 2010, with an increase of approximately 26,920 people. La Quinta experienced the third largest numerical increase, with an added population of 13,773• Table II-2 Population Growth City/Region 2000 2010 Census 2012 DOF 2000-2010 2010-2012 % # % # La Quinta 23,694 37,467 58.1 13,773 38,075 1.6 6o8 Coachella Valley 255,788 346,518 35.5 90,730 355,986 273 9,468 Riverside County 1 1,545,387 1 2,i89,641 41.7 644,254 2,268,783 3.6 79,142 Source: 20oo and 2010 Census; DOF 2012 HOUSING II-45 Table II-3 Population Growth In Coachella Vallev Cities City 2000 2010 Census 2012 DOF Change 2000- 2010 Change 2010- 2012 % # % # Cathedral City 42,647 51,200 20.1 8,553 52,1o8 1.8 9o8 Coachella 22,724 40,704 79.1 17,980 42,030 3.3 1,326 Desert Hot Springs 16,582 25,938 56.4 9,356 27,721 6.9 1,783 Indian Wells 3,816 4,958 29.9 1,142 5,050 1.9 92 Indio 49,116 76,036 54.8 26,920 78,298 3.0 2,262 La Quinta 23,694 37,467 58.1 13,773 38,190 1.9 723 Palm Desert 41,155 48,445 17.7 7,290 49,619 2.4 1,174 Palm Springs 42,807 44,552 4.1 1,745 45,414 1.9 862 Rancho Mirage 13,249 17,218 30.0 3,969 17,556 2.0 338 Total 255,79 1 0 346,51 1 8 35.5 90,728 355,98 6 2.7 9,468 Source: z000 and 2010 Census: DOF 2012 Seasonal Population The seasonal or part time resident population is not included in the population estimates compiled by the Census Bureau because people are classified according to the location of their primary residence. The California Department of Finance (DOF) provides a yearly estimate of total built housing units and an estimate of the number of vacant units. In resort communities like La Quinta, the number of vacant units reflects the number of units that are not occupied year round, as well as those that are ready for year round occupancy but as yet have not been inhabited. According to the 2010 Census, the overall vacancy rate for La Quinta is 36.9%, while the seasonal vacancy rate is 27.5%. Age Composition Table II-4 Age Distribution, shows the change in age groups from z000 to 2010. In 2010, children (ages 0-17) comprised 22 percent of the population, adults (ages 18-64) represented 57 percent and senior citizens (ages 65 and over) made up 20 percent. In 2010, the median age in La Quinta was 45.6 years, significantly older than Riverside County and the State of California averages of 33.7 and 35•z years respectively. This represents a 25% increase in the City's median age since z000. HOUSING II-46 Table II-4 indicates that the rate of growth in the 18-65 age group remained fairly constant from 2000 to 201o. However, the 0-17 age group reflects a slower growth rate, making up 8% less of the City's population in 2010. Conversely, growth in the 65+ age category shows an 8% increase in share of City population compared to z000. Table II-4 ALre Distribution Year 0-17 % 18-65 % 65+ % Total z000 6,905 29 13,616 57 3,173 13 23,694 2010 8,208 22 21,443 57 7,816 21 37,467 Source: z000 and 2010 Census Race and Ethnicity Table II-5 highlights the ethnic distribution of the population for 199o, z000 and 2010. In z000 slightly over one-third of the City's total population was minorities, comparable to less than a third in z000 and 199o, and just over one -fifth in 1980. Hispanic residents, 7,486 people, are approximately 86 percent of the minority population in La Quinta. Most significantly, the number of Hispanic residents in La Quinta tripled from 198o to 199o, and then doubled again from 1990 to z000. La Quinta is becoming a more ethnically diverse community. Table II-5 i98o-2000 Ethnic BackLyround of Population Ethnic Group 1990 12000 % Change 1990- 2000 2010 Change 2000- 2010 Change 1990- 2010 # % # % # % Caucasian 7,804 69.6 14,944 62.9 -6.7 23,642 63.1 0.2 -6.5 Hispanic 2,944 26.3 7,486 32.0 +5.7 11,353 30.3 -1.7 +4.0 African American 18o 1.6 226 1.4 -0.2 599 1.6 +.2 0 Native American 117 1.0 37 0.1 -0.9 112 0.3 +.2 -0.7 Asian/Pacific Islander 170 1.5 535 2.3 +.8 1,o87 2.9 +o.6 +1.4 Other NSA 1.1 426 1.8 0.7 674 1.8 0 +.7 Total 11,215 100.0 23,654 100.0 ---- 37,467 100.0 ---- --- Source: 1990, z000, and 2010 Census; Coachella Valley Association of Governments Note: Population numbers may seem distorted because the US Census does not consider Hispanic ancestry to be a race. For this reason, some Hispanics choose to list themselves under other races. 1% change presented in terms of proportional representation in the population, not of numerical increase HOUSING 11-47 Employment The economy of the Coachella Valley was traditionally agriculture - driven, but agriculture is steadily being replaced by tourism and residential uses. Although employment patterns typically induce housing demand, the regional economy of the Coachella Valley differs from most parts of the state. Here, employment is created by housing demand, manifested in the construction and staffing of resorts and second homes. Tourist and resort development are leading indicators to predict employment and housing demand. Although a tourist economy is seasonal, in the Coachella Valley it is generally stable and does not suffer the severe effects of recessions as do other regions dependent on manufacturing and consumer related goods. And with the benefit of desert weather, the resorts in the La Quinta area are increasingly operating year round. There is, however, some seasonal fluctuation in the labor market, which can further compound the problem of economic stability in the lower income sectors of the labor force, affecting their ability to sustain themselves in the off season (summer) months. According to the US Census Bureau (2007-2011 American Community Survey), in 2011 the civilian labor force comprised 17,382 persons, of whom 16,291 were employed. The unemployment rate was 6.3 percent. Table II-6 shows the types of employment by industry held by La Quinta residents in 2011. The majority of jobs held by La Quinta residents were in service industries, followed by retail trade, finance/real estate, and professional industries. Many La Quinta residents work in other communities, and many residents from other cities work in La Quinta. An estimated at 2,046 (approximately 19 percent of the total resident work force) both live and work in La Quinta. Most employment opportunities in and around the City are related to the provision of services. Table II-7 shows the major employers for the community area, defined by the La Quinta Chamber of Commerce as including La Quinta, Indian Wells, Palm Desert, and Indio. The largest employers are in the nonmanufacturing economy and are directly related to the provision of services, including public service, big box retail, and recreational and resort activities. In 2008 the City surveyed its major commercial and hospitality facilities to identify major employers in the city limits. The largest employers HOUSING II-48 surveyed were Desert Sands Unified School District, La Quinta Resort and Club, Wal-Mart, Costco, and PGA West Golf Resort. Table II-6 Employment by Industry Industry Employed Persons % of Employed Persons Agriculture, Forestry and Fisheries, Mining ii7 0.7 Arts, Recreation, Accommodation and Food Service 3,°35 i8.6 Construction 1,422 8.7 Manufacturing 773 4.8 Transportation/Warehousing/Utilities 528 3.3 Wholesale Trade 292 1.8 Retail Trade 2,228 i3.7 Finance/Real Estate i,i00 6.7 Professional and Administrative i,8i8 11.2 Health, Educational, Information, Social and Other Services 4,422 27.i Public Administration 556 3.4 Total Civilian Employed 16,291 100.0 Source: 2007-2011 ACS 5-year estimates Table II-7 Major Employers La Quinta Community Area Name of Employer Employed Persons Description Desert Sands Unified School District i,000 Public school system La Quinta Resort & Club 1,200 Resort hotel Wal-Mart Super Center 365 Retail Rancho La Quinta i50 Residential Golf Club Costco 230 Retail PGA West 235 Residential Golf Club Hideaway 122 Residential Golf Club Home Depot 240 Home improvement Imperial Irrigation District 200 Utility company Lowe's Home Improvement i45 Home improvement Stater Bros. i50 Supermarket Best Buy i00 Retail Target 200 Retail Tradition Golf Club i01 Residential Golf Club The Quarry 9i Residential Golf Club Thane Marketing International 90 Infomercial company Ralphs 88 Supermarket Source: 20o8 Employer Survey, City of La Quinta; City of La Quinta Certified Audited Financial Report 2012. HOUSING General Income Characteristics The median household income of La Quinta in 2010 was $67,444 higher than the Riverside County median household income of $58,365. Since z000, the median income for La Quinta residents has increased, with the z000 median family income reported as $54,300 for the County of Riverside and $62,500 for the City of La Quinta. Household income estimates (201o) by total households are found in Table II-8. Although the census classifications for income are not the same as the household income categories used by the State of California in housing affordability analyses, general comparisons can be made. Five household income categories are used by the State of California for housing affordability analysis based on the area median income (AMI): extremely low (30 percent or less of the area median income) very low (31 to 50 percent of the AMI), low (51 to 8o percent of the AMI), moderate (81 to 120 percent of the AMI), and above moderate (more than 120 percent of the AMI). Table II-g identifies the actual income limits for the five income categories and median income based on the HUD 2012 median income of $63,300 for a family of four in Riverside County. Table II-loestimates the distribution of extremely low, very low, low, moderate, and above moderate incomes in the City of La Quinta based on the 2011 American Community Survey. The above moderate income households constitute the largest grouping, accounting for 51.1 percent of all households. 20.7 percent of the households in the City are moderate income households, with 12.2 percent classified as Low, 7.7 percent as very low, and the remaining 8.3 percent as extremely low income households. HOUSING II-50 Table II-8 2011 Household Income Estimates Income Category Households % of Households $0 -14,999 1,020 7.2% $15,000 - 34,999 1,791 12.7% $35,000 - 49,999 1,481 10.5% $50,000 - 74,999 2,553 18.1% $75,000 - 99,999 27073 14.7% $ioo,000 + 5,205 36.9% Total 14,105 1100.0% Median Income $77,790 Source: U.S. Census Bureau, 2007-2011 American Community Survey Table II-9 Income Limits by Household Size, 2012 Household Size 1 2 3 4 5 6 7 8 Extremely $14,100 $16,100 $18,100 $20,100 $21,750 $23,350 $247950 $26,550 Low Income Very Low $23,450 $26,800 $30,150 $33,5o0 $3 6, 200 $38,900 $41,550 $44,250 Income Low Income $37,550 $427900 $48,250 $53,600 $57,900 $62,200 $667500 $70,800 Moderate $53,150 $60,750 $687350 $75,950 $82,050 $88,100 $94,200 $1007250 Income Median $44,330 $50,650 $56,950 $63,300 $687350 $73,450 $787500 $83,550 Income Source: HCD 2012 Table II-i0 Households by Income Category, 2010 Income for Family of 4 Number of Households Percentage of Total Extremely Low 1,334 8.3 Very Low 1,237 7.7 Low 1,952 12.2 Moderate 3,311 20.7 Above Moderate 8,184 51.1 Total 16,018 100.0 Source: 2005-2009 ACS 5-year data; US Census, SCAG The 2010 Census reports that 2,885 persons, 7.7 percent of the total population in the City, were below the poverty threshold. HOUSING Approximately 16 percent of La Quinta households earn 50 percent or less of the AMI. This is to percent less than in z000, and indicates a significant improvement in incomes for lower income households. HOUSING PROFILE This section provides an overview of La Quinta's existing housing stock. Since the establishment of the La Quinta Hotel in 1926, La Quinta has been considered to be a world class resort and has been a favored location for vacation and retirement homes. Generally, single-family residences were constructed on an individual basis from the 1950s until the La Quinta Country Club area was developed in the 196os. In 1975 a brief building boom began due to speculation. Recessions in the 198os and early 199os resulted in an oversupply of housing and little construction in the City. Since these recessions, a rebound occurred beginning in the late 199os. As a result the City has seen a rapid increase in residential development of all types, but predominantly single-family units. There are many projects clustered around recreation amenities. In many of these communities second units and guest houses (typically used to house guests, extended family members, and service workers) are processed concurrently with the primary unit. While new single-family detached and attached homes are entitled and waiting to be built, the bust of subprime lending practices in the mid z000s has resulted in a steep decline in home values, rapid increase in foreclosures, and a decrease in the number of households eligible to enter the ownership housing market. Several projects under construction in zoo7 and 2oo8 have been on hold indefinitely, but there has been recent interest in revising these projects to reflect the new characteristics of the emerging recovery of the area's housing market.. Housing Characteristics Between z000 and 2010, the number of housing units in the City increased by 11,677 units from 11,812 to 23,489 units. This change represents a 98.9 percent increase (see Table II-11). There are three basic types of housing units for which data is presented in Table II-12: single family units, which include both detached and attached units; multifamily units, which include apartments, duplexes, triplexes and fourplexes; and mobile homes. The predominant type of dwelling unit in the City of La Quinta continues to be single family. HOUSING II-52 Together, detached and attached single-family homes comprised 89.o percent of all units in the City. The number of multifamily units in the City more than doubled from 2000 to 201o, although multifamily units represent to percent of the total housing stock. The rate of development activity in the City has varied over the years, as shown in Table lk3. The numbers in Table II-13 are based upon the number of building permits issued, as compared to units built to date. Therefore, the number of units reported is greater than that as reported by DOF for a similar time period. The annual growth rate for development activity hit a high of 24.7 percent in 1988 but dropped dramatically in subsequent years, to a low of 3.7 percent in 1991. While growth rates began to improve during the 199os to around 5 to 9 percent, growth in housing production peaked in the mid-20oos, and began to drop significantly in 2007. Table II-1i Total Housing Stock z000 to 2010 2000 2010 Change 2000-2010 % # California 13,312,456 13,68o,o81 +2.8 +367,625 Riverside County 584,674 8o0,707 +36.9 +216,033 La Quinta 11,812 23,489 +98.9 +11,677 Source: z000 & 2010 Census; DOF Table II-12 Total Dwelling Units by Tvpe of Structure z000 to 2012 Building Type 2000 2012 Change 2000-2010 Units of Total Units % of Total % # Single -Family 10,788 91.3 21,009 89.o +94.7 +10,221 Multifamily 765 6.5 2,345 10.0 +2o6.5 +1,580 Mobile Homes 259 2.2 231 1.0 —1o.8 —28 Total Dwelling Units 11,812 100.0 23,585 100.0 +99.7 +11,733 Source: z000 Census data and 2012 DOF 'In 2oo6 a mobile home park was converted to the Vista Dunes affordable housing project. The residents of the 92 mobile homes were compensated and relocated. HOUSING 11-53 Table II-13 Historic Record of Housing; Development Year Single- Family Detached Single- Family Attached Multi- family Mobile Homes Demo Annual Total Sum Total Annual growth W Pre- 1983 1,415 374 168 0 ---- N/A 1,957 N/A 1983 20 227 10 226 ---- 483 2,440 24.7 1984 82 202 2 - -- ---- 286 2,726 11.7 1985 74 307 0 ---- ---- 381 3,107 14.0 1986 158 237 3 ---- ---- 398 3,505 9.7 1987 143 123 0 ---- ---- 266 3,771 5.9 1988 467 712 0 ---- ---- 1,179 4,950 24.7 1989 587 142 0 ---- -6 723 5,673 12.2 1990 707 371 0 ---- -4 1,074 67747 16.1 1991 282 4 0 ---- ---- 286 7,033 3.7 1992 283 32 0 ---- ---- 315 7,348 3.9 1993 312 12 0 ---- ---- 324 7,672 3.9 1994 474 24 0 ---- ---- 498 8,170 5.7 1995 380 28 91 ---- 499 87669 5.4 1996 462 24 116 ---- ---- 602 9,271 6.2 1997 466 28 1 ---- -1 494 9,765 4.8 1998 870 34 0 ---- -2 902 1o,667 8.4 1999 1,171 20 0 ---- -4 1,187 11,854 10.2 2000 1,274 58 200 ---- ---- 1,532 13,386 11.9 2001 898 4 0 -11 891 14,277 6.2 2002 570 87 117 ---- -13 761 15,038 5.0 2003 1,030 78 280 ---- -10 1,378 16,416 9.2 2004 1,293 111 14 ---- -21 1,397 17,813 8.5 2005 1,242 2o6 151 ---- -12 1,587 19,400 8.9 20o6 719 148 327 -92 -6' 1,o96 20,496 5.7 2007 448 ---- ---- -21 -3 424 20,920 2.1 20o8 230 6 218 -3 451 21,371 2.2 2009 103 6 0 -4 105 21,476 0.5 2010 73 6 0 --- ---- 79 21,555 0.4 2011 34 4 0 ---- -2 36 21,591 0.2 2012 49 0 176 ---- -1 224 21,815 1.0 To 6/1/13 52 0 0 ---- ---- 52 21,867 0.2 Source: City of La Quinta Historic Record of Housing Development, 2012; City of La Quinta Monthly Building Permit Logs, 20o6-2013 ' In 20o6 a mobile home park was converted to an affordable housing project; the mobile homes are not included in the demolished category. The residents of the 92 mobile homes were compensated and relocated. A significant factor affecting the number of available units throughout most communities in the Coachella Valley is the fact that many housing units are held off the market for use either as short term vacation rentals or as second homes. Statistics available from DOF as of January 1, 2013, indicate that the vacancy rate in La Quinta is 36.9 percent, reflecting the seasonal resort character of the City. The 2010 Census HOUSING II-54 estimated that 74.4 of vacant housing units in the City are for seasonal or occasional use. On that basis, the City's actual net vacancy rate is 9.5%. Household Characteristics Before current housing problems can be understood and future needs anticipated, housing occupancy characteristics need to be identified in the City. The following is an analysis of household size, household growth, tenure, and vacancy trends. By definition, a "household" consists of all the people occupying a dwelling unit, whether or not they are related. A single person living in an apartment is a household, just as a couple with two children living in the same dwelling unit is considered a household. Households and Household Size Between z000 and 201o, La Quinta households grew at a rate more than twice that of Riverside County, as shown in Table II-14. It is important to note, however, that the vast majority of this growth occurred prior to 2oo8, and that growth ceased almost completely. The total number of households in the City in 2010 was 14,820, which represents a net increase of 6,375 households since z000. Table II-15 shows the number of households in La Quinta by household size. Household size is important, as the City uses the average household size to plan for most public improvements and services and to project population. The 2010 Census estimates the number of persons per household at 2.52, and January 1, 2013, DOF estimates show a slight increase, at 2.57 persons per household. Table II-14 Total Households, z000 and 2010 Jurisdiction z000 2010 # Increase i Increase County of Riverside 5o6,218 686,26o 180,042 35.6 City of La Quinta 8,445 14,820 6,375 75.5 Source: z000 and 2010 Census HOUSING II-55 Table II-15 Household Size, z000 and 2010 Household Size 2000 2010 Number Percent Number Percent 1 Person 1,426 16.9 3,164 21.3 2 Person 3,304 39.1 6,471 43.7 3-4 Person 2,556 30.2 3,669 24.8 5+ Person 1,169 13.8 1,516 10.2 Total Households 8,455 14,820 Average Household Size 2.79 2.52 Source: 2000 & 2010 Census Note: Total number of households and average household size obtained from DOF and distribution extrapolated based on 2000 Census figures. Housing Tenure The number of owner occupied housing units in the City has not fluctuated much during the last decade. In z000, La Quinta owners occupied 81.5 percent of total units in the City, compared to 75.2 percent in 2010. As shown in Table II-15, the number of owner occupied units decreased from 81.5 percent in z000 to 75.2 percent (11,152 units) in 201o. The increase in the proportion of renter occupied housing units in La Quinta from 18.5 percent (1,566 units) in z000 to 24.8 percent in 2010 reflects the various factors associated with the recent economic downturn: job loss, sub -prime lending practices, Vacancy The vacancy rate is a measure of the general availability of housing. It also indicates how well the types of units available meet the current housing market demand. A low vacancy rate suggests that households may have difficulty finding housing within their price range; a high vacancy rate may indicate either the existence of a high number of units undesirable for occupancy or a simple oversupply of housing units. Statistics available from DOF as of January 1, 2013, indicate that the vacancy rate in La Quinta is 36.9 percent, reflecting the seasonal resort character of the City. The 2010 Census estimated that 74.4 of vacant housing units in the City are for seasonal or occasional use. On that basis, the City's actual net vacancy rate is 9.5%. Of the 8,669 vacant units in 2010, 736 were available for rent, 783 were available for sale, and 141 had been rented or sold and were awaiting HOUSING II-56 occupancy. The remaining 6,448 units were counted as seasonal or second homes. Table II-16 Housing Tenure and Vacancy Tenure 2010 Percentage Total Units Total Units 23,489 100.0 Occupied 14,820 63.1 Vacant 8,669 36.9 Ownership Units Total Ownership Units 12,022 100.0 Occupied 11,152 92.8 Vacant 870 7.2 Rental Units Total Rental Units 4,458 100.0 Occupied 3,668 82.3 Vacant 790 17.7 Seasonal/Other Units Total Seasonal Recreational Use 6,448 Rented or Sold, not occupied 141 -- Other Vacant 561 -- Source: 2010 Census Age and Condition of Housing Housing age is a factor for determining the need for rehabilitation. Without proper maintenance, housing units deteriorate over time. Also, older houses may not be built to current housing standards for fire and earthquake safety. Approximately 72 percent of the housing stock in the City of La Quinta has been built since 199o, and about 42 percent of the current stock has been constructed since 2000 (see Table II-17). Less than 4 percent was constructed prior to 1970. The oldest homes in the City are found in the Cove neighborhood. Of the older single family homes, many are well maintained and are mostly occupied by long term residents. A small proportion of older homes have not been well -maintained. These homes are typically smaller than new homes in the City; some less than 1,000 square feet. As land values increase, it will become economically viable to replace HOUSING 11-57 or rehabilitate some of these structures. These homes are primarily in the Cove area and behind City Hall. Outside of the Cove area, the homes are generally newer. Many new units in these other areas are custom homes in gated communities and are maintained by their owners in accordance with the requirements of a home owners association. Table II-17 Abe of Housing Stock in La Ouinta Year Built Total Percentage 2005-2011 2,161 9.8 2000-2004 7,176 32.5 1990-1999 6,448 29.2 198o-1989 3,658 16.6 1970-1979 1,867 8.4 196o-1969 427 1.9 1950-1959 159 0.7 1940-1949 84 0.4 Before 1939 102 0.5 Total Stock Z 22,o82 100.0 Source: 2007-2011 5-year ACS Census data Housing is considered substandard when conditions are found to be below the minimum standards of living defined by Section loos of the Uniform Housing Code. Households living in substandard conditions are considered as being in need of housing assistance even if they are not seeking alternative housing arrangements. The majority of the substandard units and the units needing replacement are in the Cove area. Many of the housing units in the Cove area are more than 30 years old. After 30 years homes generally require major rehabilitation, such as a new roof or updated plumbing. Housing Conditions Survey Methodology A citywide survey of the housing stock was conducted in November zoo7 to make observations of housing conditions. Some older areas of the City that are known to have particular housing problems include the Cove, Desert Club tracts, Cameo Palms, and Westward Ho neighborhoods. The survey addressed five housing characteristics: ❖ Structural, such as walls, beams, supports, and columns. HOUSING II-58 ❖ Doors and windows, including soffits, overhangs, and entries. ❖ Paint and cosmetics, looking for fading, cracking, or chipping of paint, stucco, plant-ons, and trim or fascia. ❖ Roofing, looking for missing or broken tiles or shingles, sagging or bowing, or eave damage. ❖ Streetscape, including landscape, graffiti, and refuse. The survey measured each characteristic for each home based on a four -point scale: minor deterioration (one point), moderate deterioration (two points), substantial deterioration (three points), and dilapidated conditions (four points). The values assigned for the five characteristics were summed for each home and divided to create an average score. Homes receiving an average score of less than 1.o were classified as units that have simply deferred maintenance. When a home averaged a score of 1.0-1.5, the home was identified as in need of minor rehabilitation. If the average score reached 1.6-2.5, the home was identified as in need or moderate rehabilitation. Finally, any home that received an average score of 2.6 or higher was identified as in need of substantial rehabilitation. Housing Conditions Survey Results The majority of units surveyed were found to be in good condition, with little or no observation of deferred maintenance or need for repairs. The survey showed that approximately 1,470 units in the City (approximately 7 percent of the housing stock) exhibited the need for maintenance activities or structural repair. Deferred Maintenance Almost all of the units identified in the survey, 1,408 units, were assigned an overall score of less than 1.o and are classified as deferred maintenance. The buildings under this classification do not display major structural deficiencies, but include characteristics that do require attention. In general, these units exhibited only minor deterioration for a couple of characteristics. For example, some painting or minor repairs to the fascia, trim, windows, garage, and front doors may be needed. The surface material or rock/pebble protective covering of the roof may need HOUSING II-59 attention. Most frequently cited are cases where the aggregate/pebbles have been stripped or worn off, and the black asphalt/tarred sheet rock underlayment is exposed. Units displaying warped garage doors that do not close all the way, peeling paint on wood siding, and unpainted or major discoloration of patches of stucco are also included in this classification. Units in the deferred maintenance category may also reflect the need for fence repair or paint; the complete lack of landscaping, where the yard consists of dirt, weeds, dead plants, or rusting metal of unknown sources; and neglect of portions of the yard or exterior structures (such as shade overhangs, porticos or fences). Other circumstances that contribute toward the deferred maintenance ranking include the use of the front/side yards for unstructured/unorganized/ unshielded storage of vehicles, old tools, old machinery, propane tanks, broken doors, windows, furniture, and other types of clutter; and the storage of campers or camper shells in the front yard rather than the driveway. In some cases these camper units appeared to be occupied. These characteristics do not, for the most part, compromise the structural integrity of the housing unit. However, they can lead to more serious physical deterioration and contribute to an overall atmosphere of neighborhood neglect and disrepair ("blight"). In some cases, units exhibit several substandard physical conditions concurrently, (such as need for window repair, stucco patching, and replacement of garage doors), but don't exhibit yard maintenance deferral. These units are technically indistinguishable from those units in the minor rehabilitation category. If a unit in the deferred maintenance category reveals the existence of three or more physical conditions, it is worth considering for minor rehabilitation. Other characteristics not specifically ranked may also warrant minor rehabilitation. Minor Rehabilitation There were 36 units that received an average score of 1.0-1.5 and were classified as minor rehabilitation. A total of 30 of these units were in the Cove area. This classification reflects the presence of three or more deferred maintenance items and/or the inclusion of one non-structural major deficiency. Most combinations of conditions showing need for minor rehabilitation included deferred yard/fence maintenance and paint or HOUSING II-6o stucco repair. A unit exhibiting characteristics warranting a minor rehabilitation classification may not necessarily reflect the existence of a major deficiency. The majority of units in the minor rehabilitation category reflect the presence of numerous deferred maintenance conditions. These conditions may begin to physically deteriorate the unit, yet do not materially endanger the occupation of the unit, and are economically feasible to correct. Moderate Rehabilitation Of the 23 units classified as in need of moderate rehabilitation, zo are in the Cove area. Receiving average scores of 1.6-2.5, these units distinguish themselves from those in need of minor rehabilitation by exhibiting conditions that may materially endanger the health, safety, or wellbeing of the occupant. These units, however, may be economically feasible to repair. Based upon survey observations, the structures in this Moderate Rehabilitation category are clearly in a deficient state. For the most part, four to five deferred maintenance deficiencies, more than one major deficiency, or a primary structural element needing major repair, were observed for units in the moderate rehabilitation category. The most prevalent characteristics observed in single-family units of this category were need for major roof repair, window replacement, or some slight structural or concrete repair. These characteristics are compounded by deferred maintenance items such as trim or garage doors lacking paint, deferred upkeep of landscaping and fencing, and roofs in need of patching. Many homeowners may not be aware of rehabilitation programs that can help them bring their home up to code. The City will list these resources on its website and may be able to provide financial assistance for home rehabilitation. The County of Riverside also offers a home repair program. Substantial Rehabilitation or Replacement The four housing units classified as substantial rehabilitation are units that, in their present state, materially endanger the health, safety and/or wellbeing of occupants in at least one respect. These units received an average score of 2.6 or greater and may not be economically feasible to repair. These units exhibit characteristics such as need for complete replacement of the roof structure, walls that will require HOUSING II-61 reconstruction/replacement, major stucco and painting needs, partial foundation deterioration, and dilapidated yard/grounds and fences. In addition to structural deficiency, the lack of certain infrastructure and utilities often serves as an indicator of substandard conditions. According to the 2000 Census, there were 19 ownership units that lacked complete plumbing facilities and 34 units in the City that lacked complete kitchen facilities. Additionally, there were 15 units reliant on wood as the heating source, and 67 units with no source of heating. The City initiated a Residential Rehabilitation Assistance Program in 1997 and rehabilitated a total of 13 homes between 1997 and 2004. The program was discontinued in 2004 due to a lack of interest from property owners and contractors. From 2010 through 2012, the Code Compliance Division has acted on 185 violations relating to the Building Code. While Code Compliance statistics do not differentiate violation statistics into categories, most Building Code violations would include conditions which threatened public health and safety, such as roofing failure, major wall repair, foundation repair, and similar conditions. All the violations were corrected. Rooms per Unit Table II-18 shows the number of bedrooms per unit, ranging from no bedroom (studios) to five or more bedrooms. Table II-18 also highlights the number of bedrooms per unit, in relationship to the total number of units for both 200o and 2011. The single largest increase proportionally was in three -bedroom units, which increased 8 percent from 2000 to 2011. HOUSING II-62 Table IH8 Bedrooms Per Unit, 2000-2011 Bedrooms Per Unit 2000 % of Total 2011 % of Total % Change' Studio (no bedroom) 159 1.3 248 1.1 -0.2 1 375 3.2 1,296 5.5 2.3 2 2,101 17.9 4,510 19.1 1.2 3 7,013 60.0 12,251 52.0 -8.0 4 2,044 17.4 4,595 19.5 2.1 5+ 71 0.6 657 2.8 2.2 Total 11,763 1 100.4 23,557 100.0 ---- Source: z000 Census, 2007-2011 American Community Survey. ' This category represents percent change in proportional terms. Table II-19 identifies the number of bedrooms in a dwelling unit by tenure. Three -bedroom units constituted the majority of housing stock (approximately 59 and 44 percent, respectively) for both owner and rental units. In ownership units, those with two, three, or four bedrooms made up 96 percent of units, while the same bedroom mix made up only 83 percent or rental units. As would be expected, rental units contained a much higher proportion of one -bedroom units, providing housing for those who are young, mobile or do not earn enough to enter homeownership. HOUSING 11-63 Table II-19 Bedrooms in Dwelling Unit by Tenure, 2010 Tenure Number Percentage Owner Occupied 10,238 goo Studio (no bedroom) i8 i i bedroom 84 i 2 bedrooms i,i00 ii 3 bedrooms 6,o66 59 4 bedrooms 2,638 26 5 or more bedrooms 332 3 Renter Occupied 3,643 too Studio (no bedroom) 28 i i bedroom 602 i7 2 bedrooms i,ii0 30 3 bedrooms i,589 44 4 bedrooms 314 9 5 or more bedrooms 0 0 Total 13,881 too Studio (no bedroom) 46 i i bedroom 686 5 2 bedrooms 2,200 i6 3 bedrooms 7,655 55 4 bedrooms 2,952 21 5 or more bedrooms 332 2 Source: U.S. Census Bureau, 2008-2010 American Community Survey. Housing Costs and Rents This section discusses resale pricing for existing housing, the pricing for new single family housing, and the average rental prices in the City. La Quinta's for -sale and rental properties range from multimillion dollar estates to very low income subsidized units. Resale Homes The average price for a resale home in the City varies, depending upon the type and location of the unit. As shown in Table II-20, approximately 49 percent of single-family detached homes and 40 percent of condominiums were listed under $3oo,000. Available condominiums have a wide price range depending on location, bedroom count, and amenities associated with the subdivision. The median home sales price for an existing home in the 2nd quarter of 2012 was $330,000, an increase of 9.2% over the previous year, but a 15% drop from the same period in 2010, when the median sales price stood at $384,000. HOUSING II-64 Table II-20 Sample Resale Prices of Single -Family Homes and Condominiums Single-family Homes Condominiums Price Range Number Percent Number Percent $750,000- 75 13% 0 0% $3,500,000 $500,000- 83 14.5 13 1o.6 $749,999 $400,000- 45 8% 15 12.2% $499,999 $350,000- 30 5% 29 23.6% $399,999 $300,000- 63 11% 17 13.8% $349,999 $250,000- go 15.7% 17 13.8% $299,999 $200,000- 70 12.2% 19 15.4% $249,999 $150,000- 79 13.8% 7 5.7% $199,999 $125,000- 19 33% 5 4.1% $149,999 $75,000- 17 3.0% 1 o.8% $124,999 $0-$74,999 3 0.5% 0 0% Total 574 t00% 123 t00% Source:: www.Trulia.com, April 2013 (1/1/13 - 4/20/13) New Homes The construction of new homes in the City has been severely curtailed by the recession. The median price for a new home in the 2"d quarter of 2012 was $475,000, a 3% decrease from the previous year, and 1% less than in 201o. The new housing market in La Quinta has yet to recover. A number of projects that are approved but not yet constructed have been stopped. The owners of undeveloped or unfinished residential projects may decide to sell the land or hold the land and restart construction during the next upswing in the housing market. Some new properties have been auctioned off and others are being sold back to financial institutions. Overall the housing market in La Quinta is more affordable than in previous years. During the 2oo6-2013 planning period, the City built affordable for -sale units in addition to affordable rental projects. Watercolors, a 149-unit project that opened in 2007, includes two- and three -bedroom units affordable to moderate income households (ages 55 and over). HOUSING II-65 Rental Units Table II-zz provides a listing of advertised rents for a selection of apartment properties. These market rate units are largely affordable to moderate income households of any size. New rental projects in La Quinta, particularly affordable projects, are incorporating more aspects of sustainable design and green building. The Vista Dunes Courtyard Homes project, constructed in 20o8, which provides 79 rental units affordable to very low income households and one unit affordable to a moderate income household. Vista Dunes is the first very low income multifamily project of its size in the country to achieve LEED Platinum certification. The project provides a swimming pool, playground, basketball court, and large community multipurpose room. Wolff Waters Place, built in 2009, includes 218 green -built apartments, of which 216 are affordable to very low income households and z are affordable to moderate income families. Coral Mountain Apartments is designed for 176 units, of which 36 are proposed to be affordable to very low income households, 138 to low income households, and z units will be affordable to moderate income households. The project will be completed in 2014, early in the planning period. Washington Street Apartments consists of 72 existing one -bedroom apartment units located on approximately 4.7 acres of land. These units will be rehabilitated by the City, and 68 new one -bedroom units, on approximately 5 additional acres, will be added. The majority of apartment rental properties are offered at costs comparable to the average rental costs for the Coachella Valley as a whole. The affordability of rental housing in La Quinta is not directly tied to the density of the project; rather, prices range based on condition, on -site amenities, location, and unit size. HOUSING II-66 Table II-21 Representative Apartment Market Rental Rates Project Name Unit Size Market Rental Rate Villagio at La Quinta 1 & 2 Bdrm $1,129-1,285 Mediterra 1 & 2 Bdrm $999-1,390 Villa Cortina 1, 2,3 & 4 Bdrm $666-842 Aventine 1 & 2 Bdrm $1,045-1,245 Vista Dunes 1, 2 & 3 Bdrm $277-711 HOUSING NEEDS The following analysis of current City housing conditions presents housing needs and concerns relative to various segments of the population. Several factors will influence the degree of demand or need for new housing in La Quinta in coming years. The four major "needs" categories considered in this element are: Overpayment: renters and homeowners who must pay more than 30 percent of their gross incomes for shelter. Overcrowding: In response to higher housing prices, lower income households must often be satisfied with smaller, less adequate housing for available money. Special Needs: Special needs are those associated with relatively unusual occupation or demographic groups that call for very specific program responses, such as preservation of residential hotels or the development of four -bedroom apartments. State law specifically requires analysis of the special housing needs of the elderly, the disabled, single -parent households, large families, farm workers, and homeless persons. Future Housing Needs: To meet future needs of local and regional population and employment growth, SCAG developed the Regional Housing Needs Assessment (RHNA), which establishes both the projected need for non -market -rate housing and the "fair share" distribution of the projected need to each jurisdiction in each market area. HOUSING 11-67 Overpayment and Housing Affordability State housing policy recognizes that cooperative participation of the private and public sectors is necessary to expand housing opportunities to all economic segments of the community. Historically, the private sector generally responds to the majority of the community's housing needs through the production of market -rate housing. However, the percentage of the population on a statewide basis who can afford market -rate housing is declining. The State of California and HUD determined that affordable housing should consume no more than 30 percent of household gross income for lower and moderate income households. A household spending greater than 30 percent of their gross income on housing is considered to be overpaying. Table II-zz lists the percentage of renters and homeowners who overpay for housing, based on zoos-zoog CHAS data. Approximately 19 percent of all households in La Quinta spent more than 30 percent of their income on housing costs. More than 33 percent of renter households (1,245) experienced overpayment, while only 14 percent of owner households (1,69o) overpaid for housing. For extremely low income households, 11.o percent of renters and 3.7 percent of homeowners overpaid for housing. For very low income households, 13.6 percent of renters and 16.7 percent of homeowners overpaid for housing. For low income households, 14.8 percent of renters and 26.2 percent of homeowners overpaid. Furthermore, many of these households were actually paying more than 50 percent of their gross household income for housing. HOUSING II-68 Table II-22 OverDavment by Income Category and Tenure Number of Percent Percent Household House- of of Total' Tenure Income' Cost Burden2 holds Overpay3 Extremely Low 30%-50% 25 0.9% 0.2% Income Owner Extremely Low Greater than Occupied Income 50% 405 13.8% 3.5% Very Low Income 30%-50% go 3.1% o.8% than Very Low Income Greater 400 13.6% 3.4% Low Income 30%-50% 370 12.6% 3.2% Greater than Low Income 400 13.6% 3.4% 50% Total Owner Occupied Overpaying i,6go 57'6% 14.4% Extremely Low 30%-50% 175 6.0% 4.7% Income Renter Extremely Low Greater than Occupied Income 50% �35 8.0/ 6.3/ Very Low Income 30%-50% 100 3.4% 2.7% than Very Low Income Greater 300 10.2% 8.o% Low Income 1 30%-50% 205 7.0% 5.5% than Low Income Greater 230 7.8% 6.2% Total Renter Occupied Overpaying l,245 42.4% 33.3% Total households overpaying for housing: 2,935 100.0% 19.0% Source: 2005-2009 CHAS Total Owner Occupied = 11,705 Total Renter Occupied = 3,735 ' Note: HUD and CA HCD use different terminology/methodology to define Household Income, but they are roughly equivalent. The table above uses HCD's terminology ("extremely low, very low, low") since that's what we use in HE documents. 2 Percent of monthly income spent on housing costs, including utilities 3 Percent of households that overpaid. ' Percent of total households per tenure. A distinction between renter and owner housing overpayment is important because, while homeowners may overextend themselves financially to afford a home purchase, the owner maintains the option of selling the home and may realize tax benefits or appreciation in value. Renters, on the other hand, are limited to the trends of the rental market. HOUSING II-6g These overpayment estimates reflect the need for affordable housing in the City, particularly for lower income households. It also reflects the need for homes affordable to Low and Very Low income households to be available in the City for purchase. Overpayment among the Moderate and High income categories is a reflection of current economic conditions, and the mortgage crisis still under way. In addition, some owner households choose to allocate a higher percentage of their disposable monthly income on housing costs because this allocation is justified in light of investment qualities of ownership. Table II-23 identifies the affordable rents and purchase price by income category for a one -person household, a two -person household, and a family of four. Affordable rental rates are based on 30 percent of gross income, and affordable ownership costs are determined using a maximum allowance of 35 percent of gross income. To measure affordability in La Quinta, affordable housing expenditures should be compared with actual rental and purchase prices in the City. HOUSING II-70 Table II-23 Affordable Housing Costs by Annual Income Type Annual Income (2013)' Maximum Affordable Rent Payment' Maximum Affordable Purchase Price 3 Single -Person Household Extremely Low $14,100 $326 $47,250 Very Low $23,450 $543 $85,050 Low $37,550 $869 $141,750 Moderate $54,600 $1,365 $217,350 Above Moderate $54,600+ Above $1,303 Above $217,350 Median $45,500 $1,085 $179,550 Two -Person Household Extremely Low $16,100 $403 $50,850 Very Low $26,800 $670 $91.530 Low $42,900 $1,073 $152,550 Moderate $62,400 $1,560 $233,910 Above Moderate $62,400+ Above $1,56o Above $233,910 Median $52,000 $1,300 $193,230 Four -Person Household Extremely Low $20,100 $503 $74,800 Very Low $33,500 $838 $132,000 Low $53,600 $1,340 $215,600 Moderate $78,000 $1,950 $328,900 Above Moderate $78,000+ Above $1,95o Above $328,goo Median $65,000 $1,625 $272,800 Income limits established by HCD, 2013. Z Based on 30 percent of income. s Based on 35 percent of income, lo% down, 4% interest, and 1.25% taxes and homeowner's insurance monthly. Affordability of Homeownership Since 20o6 the City and Valley have experienced a wide range of pricing options due to foreclosures and decreases in home values. While there are still multimillion dollar homes for sale, there are also new and fairly new homes for sale at prices that are affordable to the median and moderate income household. Even with the downturn in the housing market, some single-family dwellings would be unaffordable to lower income households. The median sale price range of $330,000 to $475,000, puts single-family homes out of reach for most of the low and all of the very low income households in the City. Affordability of Rental Costs Low and moderate income households can afford to spend $869 to $1,950 per month on rent and utilities. As shown in Table II-23, the HOUSING average rent for many of the listed apartments range from $boo to $1,250—well within the affordable range for these households. Hundreds of lower and moderate income households are served by existing projects. Newly constructed income -restricted rental projects provide 218 units of new rental housing for very low and low income households. With the market -rate rental market essentially closed for extremely low and very low income households, however, it is evident that their major source of affordable housing will continue to be found through income -restricted housing projects, housing voucher programs, second units, and employee/guest houses. Overcrowding The Bureau of the Census defines overcrowded housing units as "those in excess of one person per room average." Overcrowding may occur when a family or household cannot afford adequate living space, has to house extended family members, or is sharing inadequate living space with nonfamily members. When more than one family shares a housing unit it is called doubling. Households with lower incomes may permit overcrowding to derive additional income, or there may be insufficient supply of housing units in the community to accommodate the demand. Table II-24 shows that 2.4 percent of the total occupied housing units were moderately overcrowded from 2009-2011, a decrease from 3.6 percent in z000. A slightly higher incidence of overcrowding was experienced among the rental tenure group. This is supported by the finding that the number of persons per unit in renter -occupied housing units was slightly higher than owner occupied, with 2.82 persons per unit as compared to 2.44 for owner -occupied households'. Although renter households constituted only 27.1 percent of all households in the City, approximately 6.o percent of renters experienced overcrowded conditions, with 1.8 percent of all renters experiencing severe overcrowding. In comparison, within owner -occupied households, which constitute 72.9 percent of all households in the City, 1.1 percent experienced overcrowded conditions, with 0.2 percent experiencing severe overcrowding. These numbers have reduced by almost one half for renter occupied, and more than three -fourths for owner occupied since the z000 Census. ' U.S. Census Bureau, 2009-2011 American Community Survey. HOUSING II-72 16.4 percent of renter households (654 households) had five or more persons, as compared to approximately 6.2 percent of owners. Large households often require homes with at least three bedrooms. According to the ACS, there were 3,418 housing units in the City with four or more bedrooms. Of these, 10.7 percent, or 365 units were renter occupied. Table II-24 Overcrowdiner Owner Renter Total Households of % of % of Status Number Owners Number Renters Number Total Not 10,103 98.7 3,313 90.9 13,4i6 96.7 Overcrowded Moderately 97 1.0 237 6.5 334 2.4 Overcrowded Severely 38 0.3 93 2.6 131 0.9 Overcrowded Total 10,238 100.0 1 3,643 100.0 113,881 100.0 Source: U.S. Census Bureau, 2oo8-2010 American Community Survey. Note: Universe is total households in occupied housing units. Housing units that exceed 1.o or more persons per room are considered moderately overcrowded. Housing units that exceed 1.5 or more persons per room are considered severely overcrowded. Special Needs The state requires that the special needs of certain disadvantaged groups be addressed in the Housing Element. Selected populations with special housing needs include the elderly, handicapped, large families, single -parent households, the homeless, and farm workers. Elderly Persons The special housing needs of the elderly are an important concern for the City of La Quinta, since many retired persons residing in the City are likely to be on fixed low incomes. Besides affordability concerns, the elderly often maintain special needs related to housing design and location. With regard to housing design needs, the elderly may require ramps, handrails, lower cupboards and counters, etc., to allow greater access and mobility. They also may need special security devices for their homes to allow greater self-protection. The elderly also have special needs regarding location. They typically need to have access to public facilities (i.e., medical and shopping) and transit. In most instances, the elderly prefer to stay in their own dwellings rather than relocate to a retirement community, and may need assistance to make home HOUSING 11-73 repairs. Every effort should be made to maintain their dignity, self- respect, and quality of life. According to ACS, 7,734 City residents, or 21 percent of the total population, were 65 years of age or older as compared to 13.4 percent in z000. Based on 2009-2011 income levels, approximately 7.2 percent of the senior households have been determined to fall below the poverty level. According to ACS, there were 1,971 senior -headed owner occupied households overpaying for housing. There were 278 senior -headed rental households overpaying. Apart from privately owned housing units, the City has several options for senior living. Among these are: The Seasons development, which offers 91 senior units in the very low and low affordable price range; Miraflores, a project completed in 2003 that supplies 118 senior units in the low and moderate income price range; and Hadley Villas Senior Apartments, an affordable project completed in 2004 that offers 81 units in the very low income price range. Continued construction of multifamily units will aid greatly in meeting the needs of seniors currently overpaying for rental units. Table II-25 City of La Quinta Householders 65 Years and Over. by Tenure Owner- Renter- Total Occupied Occupied Occupied Housing Units Housing Units Housing Units Total, City of La Quinta 10,734 3,992 14,726 Total, Householders 65 Years & Over 4,019 911 4,930 Source: 2009-2011 American Community Survey, 3-Year Estimates Disabled Persons Physical and developmental disabilities can hinder access to housing units of traditional design, and potentially limit the ability to earn adequate income. The three major housing needs of the disabled are access, location, and affordability. Disabled persons often require specially designed dwellings to provide access not only within the dwelling, but to and from the unit. Special modifications to permit free access are very important in maintaining independence and dignity. The California Administrative Code Title 24 Requirements set forth access and adaptability requirements for the physically handicapped. These regulations apply to public buildings HOUSING 11-74 such as motels, and require that ramps, larger door widths, restroom modifications, etc., be designed to enable free access to the handicapped. Such standards are not mandatory of new single-family residential construction. A number of disabled persons receive supplemental Social Security Income and are on fixed incomes. Increasing inflation and housing costs adversely affect these individuals' ability to secure affordable housing. The 2009-2o11 ACS identified 4,143 persons in the City with disabilities, of which 1,753 (42.3%) were persons over the age of 65. The table below identifies the number of disabilities, by type, for La Quinta residents. Table II-26 City of La Quinta Number of Disabilities. by Disability TVDe' Number of Disabilities percent of Total Disabilities Disabilities, ages o-64 Hearing Difficulty 567 7.4% Vision Difficulty 210 2.8% Cognitive Difficulty 954 12.5% Ambulatory Difficulty 1,308 17.1% Self -Care Difficulty 517 6.8% Independent Living Difficulty 1,032 13.5% Total, ages o-64 4,588 6o.o% Disabilities, ages 65+ Hearing Difficulty 841 11.0% Vision Difficulty 257 3.4% Cognitive Difficulty 329 4.3% Ambulatory Difficulty 908 11.9% Self -Care Difficulty 239 3.1% Independent Living Difficulty 482 6.3% Total, ages 65+ 3,056 40.0% TOTAL DISABILITIES, all age groups: 7,644 100% ' Represents the number of disabilities, not the number of individuals. One individual may have one or more disabilities. Source: S181o, "Disability Characteristics," City of La Quinta, 2009-2011 American Community Survey 3-Year Estimates. Disabilities may impair employment opportunities, resulting in limited or fixed incomes. According to ACS, 844 disabled individuals in the labor force have incomes below the poverty level. These households HOUSING II-75 may face significant challenges to affording adequate housing, transportation, and health care. Persons with Developmental Disabilities Per Senate Bill No. 812, the Housing Element must include analysis of the special housing needs of individuals with developmental disabilities. A developmental disability is defined by Section 4512 of the Welfare and Institutions Code as "a disability that originates before an individual becomes 18 years old, continues or can be expected to continue indefinitely, and constitutes a substantial disability for that individual." This includes mental retardation, cerebral palsy, epilepsy, and autism, as well as disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, but does not include other handicapping conditions that are solely physical in nature. The California Department of Developmental Services (DDS) implements a statewide system of community -based services for people with developmental disabilities and their families. DDS contracts with the Inland Regional Center in Riverside to provide and coordinate local services in Riverside County, including the City of La Quinta. The table below quantifies the developmentally disabled population in La Quinta that is being served by the Inland Regional Center. Table II-27 City of La Quinta Developmentally Disabled Population Served by Inland Regional Center Age Group # of Individuals 0-z 8 3-1 5 39 16-zz 30 z3-56 26 57+ 4 Total: to7 Includes individuals in zip codes 92253• Source: Inland Regional Center, November 19, 2012. Housing needs for individuals with developmentally disabilities can range from traditional independent living environments, to supervised group quarters, to institutions where medical care and other services are provided onsite. Important housing considerations for this group include proximity to public transportation, accessibility of the home HOUSING II-76 and surroundings, access to medical and other public services, and affordability. Facilities and services in the Coachella Valley that assist persons with developmental and physical disabilities include: o La Quinta Senior Center - La Quinta: Services include Meals on Wheels, an outreach program and volunteer home care services for homebound seniors, and coordination of Dial -a -Ride transportation services. o Angel View Crippled Children's Foundation, based in Desert Hot Springs, operates 19 six -bed group homes for children and young adults with developmental and physical disabilities. The homes provide 24-hour nursing and/or attendant care and can accommodate loo+ individuals at a time. There are 17 homes in the Coachella Valley, including 12 in Desert Hot Springs, 4 in Palm Springs, and 1 in Thousand Palms. o The Inland Regional Center oversees the management of 8 single-family residential facilities in the Coachella Valley. Each facility houses 4-6 individuals and provides 24/7 staff supervision. Residents are placed by Inland Regional Center and must meet State -mandated qualifications. o Canyon Springs in Cathedral City is a State developmental center operated by DDS. It provides residential services, treatment, and job training for up to 63 adults with developmental disabilities, some of which also have mental health needs. Referrals for admission are made by the Inland Regional Center. In November 2012, it served 55 individuals. o Community Counseling and Consultation Center, Inc./Desert AIDS Project - Palm Springs: Dedicated to providing support, care, and treatment to people with AIDS and related illnesses and education to the general community. The Desert AIDS project serves the psychological needs of AIDS clients, provides case management, anonymous HIV testing, legal services, a program of protection and prevention, and referral and recreational services. o Valley Resource Center - Indio: A nonprofit organization providing services to developmentally disabled adults. They administer supportive employment programs and other workshops to assist daily living. o Cathedral City - HIV/AIDS Facility: A 25-bed permanent residence facility for persons with HIV/AIDS. HOUSING 11-77 o FISH of Lower Coachella Valley - Indio: Provides transportation and emergency food, and operates a "good neighbor" program. o DesertArc - Palm Desert: A comprehensive service delivery agency for the developmentally disabled community; it provides programs to develop or enhance self-help skills, life enrichment skills, and prevocational and vocational skills. o Braille Institute - Rancho Mirage: A nonprofit school providing daytime classes for the legally blind, with a 50-mile service radius. Provides other services for the visually impaired. o Shelter Plus Care Tenant Based Rental Assistance - Indio: A permanent residence facility in Indio with 17 beds, serving needs of homeless persons with disabilities and the mentally ill. Large Family Households The 2009-2011 ACS reported 1,319 households in the City of La Quinta with five or more persons, which constitutes 9.o percent of all households. This represents a to percent increase from the year 2000 (1,196 households). Large -family households generally require larger dwellings with more bedrooms to meet their housing needs. But these households often experience difficulty securing adequate housing suitable for their expanded needs due to income limitations and/or lack of adequate housing stock. Difficulties in securing housing large enough to accommodate all members of a household are heightened for renters, because multifamily rental units are typically smaller than single-family units. Table II-28 presents tenure of housing units by number of persons in the unit in based on 2009-2011 ACS data. The table shows that large households are equally comprised (50/50) of owner occupied and renter occupied households (665 owner occupied, 654 renter occupied). Large owner -occupied units comprise 6 percent of all owner -occupied housing, and large renter -occupied units comprise 16 percent of all renter -occupied units. This increase is small when compared to the 56% increase in total population in the City for the same period. HOUSING II-78 Table II-28 Large Households by Tenure Number of Persons in Household Owner Occupied Renter Occupied Total Five 429 258 687 Six 182 266 448 Seven or More 54 130 184 Total 665 654 1319 Source: U.S. Census. 2009-2011 American Community Survey. Multifamily housing rental stock consists primarily of one-, two -and three -bedroom units. Single family development in the Cove is made up largely of units with three bedrooms, although four -bedroom units are also present in limited supply. Citywide single-family construction activity has created a supply of housing for large families not available in multifamily housing, although prices for larger units tend to be affordable only to moderate and above moderate income households. Single -Parent Households Single parent heads of household constitute a group with serious housing concerns. In general, families with single parent heads of household may experience a higher incidence of poverty than other household configurations. In particular, female -headed households can experience lower incomes, higher living expenses, higher poverty rates, and low rates of homeownership. Finding adequate and affordable housing is a high priority. Special considerations for this population include proximity to schools, childcare, employment, and health care. In 2010 La Quinta was home to 2,026 single -parent households, of which 1,461 were female -headed. 16.1 percent of the City's female - headed families lived in poverty, compared to 5 percent of married couple families. Many single parents do not have the resources to enter the housing market as a home owner. Although the incidence of single -parent households with children below the poverty level is low in the City, less than 2 percent of single -parent households are impoverished, addressing the housing needs for single parents may require innovative housing solutions. Strategies need to be considered to provide more housing opportunities to these households, such as new multifamily housing, mixed -use units, and subsidized single-family housing. HOUSING II-79 Farm Workers Based on an analysis of farm labor and the diminishing amount of farmland in the City of La Quinta and surrounding rural areas, the need for farm worker housing has declined. Based on 2009-2011 ACS data, there were 74 persons employed in "agriculture, forestry, fishing and hunting, and mining" in the City, which constitutes less than 1% of the City's civilian employed population 16 years and overt. It is probable that a number of occupations classified as agricultural are related to nursery operations or landscape maintenance. Responsibility for providing housing for farm workers originally lay with the growers that employed the workers. This practice was discontinued, however, due to high costs for liability insurance and maintenance. Low income groups often need housing near work. For farm workers, this means that housing is needed in rural, agricultural areas rather than urban areas. In the Coachella Valley, the principal housing options for migrant and local seasonal farm workers are family -owned homes, private rental houses, second units, apartments, and mobile homes. Farm worker housing does not appear to be a significant need in La Quinta. Extremely Low Income Households Extremely low income households are households earning less than 30 percent of the HUD Area Median Family Income (HAMFI). These households often face significant financial challenges to affording adequate housing and therefore are considered a subpopulation with special housing needs. According to 2005-2009 CHAS data there are 1,100 extremely low income households in La Quinta, consisting of 485 renter households and 615 owner households. Accordingly, the City's projected need for very low income households is 91 households (25 percent of its 20o6- 2014 RH NA total housing allocation). Extremely low income households are sensitive to unexpected changes in income and expenditures, so overpayment for housing could result in an inability to meet other important or emergency needs. Many of the City's existing and proposed very low income rental projects provide housing affordable to extremely low income individuals, couples, and families with children. Extremely low income Z U.S. Census, 2009-2011 American Community Survey. HOUSING II-8o households are also eligible to receive rental assistance in La Quinta through the County of Riverside Housing Authority's Section 8 voucher program. Small extremely low income households may also find an affordable housing option in Single Room Occupancy (SRO) hotels, second units, and guest houses. A survey of rental opportunities in 2oo8 showed that second units in La Quinta are affordable to lower income households. Another type of second unit, a guest house/employee quarters is permitted in La Quinta and is to be rented out free -of -charge, per the Municipal Code. The intent is for homeowners to provide on -site living quarters for their staff and guests. This type of second unit is mandated to be affordable to extremely low income households. Second units and guest houses/employee quarters may be important resources for seniors on a fixed -income, single -parents, disabled persons, college students, and low -wage earning workers. Homeless Persons The Riverside County Department of Public Social Services completed a homeless count in 2011 for all cities and some unincorporated areas in the County. That effort identified 3 homeless persons in La Quinta, all 3 bring "unsheltered" individuals (living on streets or in vehicles, encampments, storage structures, or other places unfit for human habitation) and o "sheltered" individuals (in emergency shelters or transitional housing).3 This estimate represents less than o.00l% of the City's total 2010 Census population of 37,467 people. The actual number of homeless may be higher given that many individuals, particularly women and children, remain hidden for safety or stay in locations where they cannot be seen. This represents an increase of 89% over the County's 2009 count (38 individuals). This information indicates that there is not a need for a shelter beds. However, homeless persons and families are often transient and may find themselves in need of shelter in any given jurisdiction in the county. If a person or family finds themselves homeless they may go to regional facilities provided by the county, City of Indio, or City of Palm Springs for assistance. The available homeless facilities in the Coachella Valley are listed in Table II-29. While the City has supported the CVAG Homeless Committee efforts, the City did not participate in funding Roy's Desert Resource Center ("Roy's"), which is in the west end of the Coachella Valley. Instead, in October 2010, the City committed funding toward a new facility for the 3 Figure 3, "Homeless County & Survey Comprehensive Report," prepared for Riverside County Department of Public Social Services, 2011. HOUSING II-81 Coachella Valley Rescue Mission, which currently shelters 150+ men, women and children and is located in Indio. The City Council also committed funding to Martha's Village and Kitchen toward construction of their new facility. The City believes these facilities to be a more logical resource for La Quinta's homeless, due to proximity to La Quinta. One use that may potentially provide housing for those in need of shelter is SRO hotels. SRO hotels, as defined in the municipal code, are residential facilities that are rented on a weekly or longer basis that may or may not have private bathroom and kitchen facilities. SRO hotels are conditionally permitted in Regional Commercial zoned districts. HOUSING II-82 Table II-29 Coachella Valley Homeless Shelter Resources 2007 Clientele Type of or Needs Number Shelter Name Shelter City Served of Beds' Coachella Valley Services Coachella and Overnight Shelter (CV- Emergency General 25 Valley SOS) Men, Coachella Valley Rescue Emergency Indio Women, 8o Mission and children Palm Nightingale Manor Emergency Families 50 Springs Undisclosed Shelter from the Storm Emergency — Coachella Domestic 6o Violence Valley Emer 100 Martha's Village and Kitchen Indio General emer/120 &Trans trans Substance ABC Recovery Center Transitional Indio Abuse 40 Palm Desert Horizon Transitional General 32 Springs Scattered Episcopal Community Transitional Site — HIV/AIDS 34 Services Coachella Valley Undisclosed Domestic Shelter From The Storm Transitional — Coachella Violence 39 Valley Victims Roy's Desert Resource Palm Permanent General go Center Springs Undisclosed Disabled Desert Vista Permanent Permanent — Coachella Men and 40 Supportive Housing Valley Women Cathedral Casa San Miguel Permanent HIV/AIDS 25 City Persons Scattered With Episcopal Community Site — Disabilities Services Permanent Coachella and 40 Valley Chronically Homeless Persons With Shelter Plus Care TBRA Permanent Indio Disabilities/ 23 Mentally III Source: Desert SOS HOUSING 11-83 Regional Housing Needs State Housing Law requires that SCAG identify future housing needs in each jurisdiction. To meet this mandate, SCAG develops the RHNA, which establishes both the projected need for housing and the fair share distribution of the projected need to its member jurisdictions. The RHNA calculates the projected new construction need necessary to accommodate the anticipated population through October 2021. State housing law requires that cities and counties demonstrate adequate residential sites that could accommodate development of housing in order to satisfy future housing need. The 2014 RHNA proposes that La Quinta construct 364 new housing units to accommodate housing needs for all income groups during the planning period January 2014 through October 2021. These units are distributed by income category as illustrated in Table II-30. According to SCAG, 91 new units are needed to accommodate very low income households, 61 new units to accommodate low income households, and 66 new units to meet the needs of moderate income households. Approximately 40 percent of the new units (146) cited by the RHNA to accommodate growth will be for above moderate income households, provided through market -rate housing. The City's 364-unit future housing need is a 1.5 percent increase in the number of existing households (23,489 in 201o), and approximately 2.3 percent of the Coachella Valley's future housing need. Table II-30 2014-2021 Regional Housing Needs Assessment Household Income Levels Income as a Percent of County Median RHNA Allocation Percent Very Low Less than 5o% 91 25.0 Low 51%-8o% 61 17.1 Moderate 81%-120% 66 18.2 Above -Moderate Over 120% 146 39.7 Total 1 364 t00% Source: Regional Housing Needs Assessment for Southern California, September 2012, prepared by SCAG. 1 Total number of units and percentage are affected by rounding error. HOUSING II-84 HOUSING CONSTRAINTS Constraints to the provision of adequate and affordable housing are posed by both governmental and nongovernmental factors. These factors may result in housing that is not affordable to lower and moderate income households or may render residential construction economically infeasible. Constraints to housing production significantly impact households with lower incomes and special housing needs. To accurately assess the housing environment in the City of La Quinta, close consideration needs to be given to a series of constraints; the housing market, infrastructure, and environmental and governmental factors that impact the cost of housing. Nongovernmental Constraints Although housing costs in the Coachella Valley region are, on average, below other metropolitan areas in Southern California, the cost of renting or purchasing adequate housing in La Quinta continues to be influenced by a number of market factors. Costs associated with labor, raw land, materials, and financing influence the availability of affordable housing. Land and Construction Costs Land costs include the costs of raw land, site improvements, and all costs associated with obtaining government approvals. Factors affecting the costs of land include overall availability within a community, environmental site conditions, public service and infrastructure availability, aesthetic considerations, and parcel size. The cost of land is an important component in determining the cost of housing development. Land in the Coachella Valley has been and remains relatively affordable compared to other Southern California markets. In 2013 residential land acquisitions show that vacant residential land outside of the Village area costs between $8o,000 and $125,000 per acre. Village Commercial land, which has the potential for up to 16 dwelling units per acre, sells for up to $590,000 per acre, based on current listings and sales in the area. Construction costs can constitute up to 50 percent of the cost of a single-family detached home. Labor costs are usually two to three times the cost of materials, and thus make up 17 to 20 percent of the total cost of a new home. Labor costs are based on a number of factors, including housing demand, the number of contractors in the area, and union status of workers. However, state law requires the payment of prevailing wages for most private projects built under an HOUSING II-85 agreement with a public agency providing assistance to the project, except for certain types of affordable housing. All cities are affected by these laws. The construction cost of housing may be considered a constraint to affordable housing in the La Quinta area. The City cannot directly control construction costs. Hence, increases in these costs amplify the need for subsidies to achieve affordability in residential units. Through density bonus provisions the City provides incentives and relief to the development community in exchange for the inclusion of affordable housing into a project. Financing e Interest rates impact both the purchase price of the unit and the ability to purchase a home. Interest rates are determined by national policies and economic market conditions and local government has no impact on these rates. Historical market trends reveal that when interest rates are high, a potential homeowner's ability to secure a loan decreases. Conversely, when rates are low, homeownership becomes more accessible to more families. The La Quinta market has demonstrated that when interest rates are low, the majority of housing demand focuses on single-family homes. When interest rates are high (in excess of about 12 percent) for any length of time, only a small percentage of new home buyers can qualify for monthly mortgage payments on the average market rate single- family home. At this point, demand shifts to lower price units, usually multifamily, and construction trends follow. First-time home buyers are the group most impacted by financing requirements. The currently low mortgage rates (at or below 4 percent), facilitate first time home buying. Typically, conventional home loans will require 5 to zo percent of the sale price as a down payment, which is one of the largest constraints to first-time home buyers. When interest rates are low, they are not generally a serious constraint to affordable housing. Further, lower interest rates help support home purchases by low and moderate income households, who may not be able to qualify at higher rates. Governmental Constraints The City has traditionally exercised authority in the areas of land use controls, site improvement requirements, building codes, fees, and other regulatory programs. HOUSING II-86 General Plan Land Use Designations The 2012 Land Use Element provides a consolidation of several land use designations used in the previous 2002 General Plan. Residential land use designations, which were previously defined in in five categories, have been reduced to two. The two residential designations include Low Density Residential and Medium/High Density Residential. The densities of individual parcels are further refined in the Zoning Ordinance. Under Program LU-7.1.a (Policy LU-7.1), the City has established a mixed -use overlay that allows for the construction of housing to be integrated in various ways such as above office space or commercial uses. The overlay is applied to all commercial zones. The mixed use overlay works together with the affordable housing overlay to raise densities to 24 units per acre (not including density bonus). The density ranges allowed for each residential district used to calculate housing at build out are listed in Table II-31. Table II-31 Residential General Plan and ZoninLy Districts General Plan Zoning Density Purpose Very Low Density Up to z units One -to two-story single-family Residential (RVL) per acre detached homes on large lots; at Low Density the southeastern boundary of the City. Low Density Up to 4 units Single-family attached and Residential (RL) per acre detached development, both in a country club setting and in standard subdivisions. Agriculture/ Applied to Allows continuation of Equestrian underlying agricultural activities in Vista Residential Overlay residential Santa Rosa area. (AVER) designations Medium Density Up to 8 units One -to two-story single-family Residential (RM) per acre detached and attached homes on Cove Residential medium to small sized lots; (RC) clustered small dwellings, such as Medium High one to two-story single-family Density condominiums, townhomes, or apartment and duplexes. Medium High Up to iZ One -to two-story, single-family Density Residential units per detached homes on small lots; (RMH) acre one -to two-story single-family attached homes; one -and two- story townhomes, condominiums and multifamily dwellings. Mobile home parks may be allowed with the approval of a Conditional Use Permit. HOUSING 11-87 Table II-31 Residential General Plan and ZoninLr Districts General Plan Zoning Density Purpose High Density Up to 24 One -to two-story single-family Residential (RH) units per attached homes; one -to three - acre for story townhomes and multifamily affordable dwellings. Duplex and multiplex housing sites development is the most common. Mobile home parks or subdivisions with common area amenities and open space may also be allowed subject to a Conditional Use Permit. General Regional Up to 24 High density residential uses are Commercial Commercial (CR) units per permitted. Commercial Park acre for (CP) affordable Community housing Commercial (CC) Neighborhood Commercial (CN) Office Commercial (CO) Village Commercial Village Commercial Up to 24 Medium High and High Density (VC) units per residential land uses are acre for appropriate. Live/work housing is affordable permitted. housing Tourist Commercial Tourist Commercial Up to 24 Single and multifamily residential (CT) units per and condominium development is acre for permitted. affordable housing Source: City of La Quinta General Plan and Municipal Code 2012 Municipal Code The residential zone portions of the Municipal Code impact housing affordability in several ways. The Zoning Code regulates such features as building height and density, lot area, setbacks, minimum unit and room size, and open space requirements for each zoning district. Development standards for the six residential zoning classifications and two overlay districts are provided in Table II-32. Residential land use regulations allow for single-family detached development by right at allowable densities between o and 12 units per acre. Single-family detached housing at higher densities may be achieved with a Specific Plan for individual projects as long as overall density is not exceeded. Single-family attached and multifamily development is permitted by right at densities between 8 and 24 units HOUSING II-88 per acre and these types of residential uses are also permitted in lower density zones under the provisions of a specific plan. A variety of residential development is possible in the City, ranging in average density from less than two units per acre for lands designated Low Density to 24 units per acre for affordable housing in the High Density and all Commercial categories. If a density bonus is utilized, greater residential densities may be achieved in any zone. Table II-33 identifies the list of permitted uses by residential district. Lower Density Residential Districts The RVL and RL zones provide for low density residential uses with densities consistent with the General Plan LDR designation (up to four units per acre). Single-family development in lower density zones is allowed through a building permit, following administrative review for consistency with the Municipal Code and state requirements. Developments requiring a tract map to establish new lots of record are reviewed by various City departments and adopted through Planning Commission and City Council public hearings. Typical conditions of approval relate to environmental quality such as erosion control, storm drainage, and access. Higher density uses such as patio homes, duplexes, attached single- family dwellings, townhomes, and condominiums may be permitted in RVL and RL zones when part of a specific plan, as long as the overall density of the specific plan project does not exceed that permitted by the underlying zone. The specific plan is reviewed by various City departments and a determination is made by the City Council at a regularly scheduled public hearing. Specific plans are typically adopted by resolution and are common throughout the City. The Zoning Ordinance permits guest houses without a Minor Use Permit. Guest houses are affordable to all income levels because they are provided free -of -charge. Another form of accessory housing, second units, are permitted by right in the RVL and RL zones. Multiple second units on one site are conditionally permitted. Development in the Cove, under RC zoning, allows for development and preservation of the character of the Cove, with one story single- family detached dwellings. The Zoning Code also establishes a minimum 7,2oo-square-foot lot size, which may require lot consolidation in some circumstances. However, as the majority of the Cove was originally subdivided into 5,000 square foot lots, existing lots HOUSING II-8g less than 7,200 square feet are considered buildable nonconforming lots. Medium and High Density Residential Districts The RM, RMH, and RH zones allow an upper range of development density consistent with the General Plan Medium/High Density Residential designation. Minimum side yards and setbacks are required where a project abuts an exterior boundary or a public street. However, lot coverage, width, and setbacks within a project are variable to allow for clustering or creative lot configurations, as well as creating space for desired recreational and open space amenities. Multifamily development is allowed in all three zones with a Site Development Permit, via design review approved at regularly scheduled Planning Commission public hearings. The City's Zoning Code allows for innovation in design standards and densities as long as the overall density and dwelling unit capacity is not exceeded. Residential compatibility standards have been incorporated into the Zoning Code, which governs conditions where higher or lower density uses are proposed than the General Plan designation. Residential Uses in Nonresidential Districts There are development opportunities for residential uses in several of La Quinta's nonresidential zones (Table II-34). Single-family residential uses are permitted under a specific plan in the Regional Commercial (CR) zone. Multifamily housing is permitted in most commercial zones. Residential uses at densities consistent with the High Density residential designations are permitted in the Village Commercial District subject to the granting of a Village Use Permit, which is required for all development in the Village area. A Village Use Permit is a Site Development Permit specific to the Village area, and allows for the review of the project for compliance with the Village at La Quinta Design Guidelines in addition to the Zoning Ordinance, Municipal Code, and state requirements. Village Use Permits are approved at regularly scheduled Planning Commission public hearings, just like a Site Development Permit. The development standards in the Village are more permissive than for typical single- and multifamily housing projects and are not considered a constraint to housing development. Projects can be developed in the Village Commercial District that are loo percent residential in use, as there is no requirement that a project be a mix of residential and nonresidential uses. Development standards specific to the Village currently include a 35400t maximum height. Setbacks along front, side, and rear property lines are not HOUSING required. Additionally, the VC zone does not require open space to be set aside for each residential unit. Residential floors generally range from 10-12 feet in height. If a project contains solely residential uses, the 35-foot height limit does not constrain development. If a project incorporates commercial and residential uses, the commercial uses will be located on the first floor and generally seek a floor height of 15-18 feet. Under the current height standard, a mixed - use project could construct three stories of development. For example, if a project consisted of two levels of residential development, a project built at 24 units per acre would only need 18,000 square feet of building area per floor; alternatively, the units could increase in size. Variations in parking requirements, including shared parking applications, may be approved. The City, in the 2oo6-2013 planning cycle, increased density to 24 units per acre, and height limits in commercial zones to 40 feet for affordable housing projects. Although the increased height limit would not be required to achieve 24 units per acre, it would provide greater flexibility in building envelopes and commercial and residential floor plates. Residential development in the commercial zones must conform to the Affordable Housing Overlay and Mixed Use development standards. These zones do not have any performance requirements that mandate commercial or other nonresidential development. Expanding opportunities for vertically mixed -use development increases the City's capacity for new attached. Attached housing types, which can generally be more affordable and lower maintenance than single-family detached homes, may provide much needed new housing opportunities for La Quinta's single - parents, workforce, and seniors. Boarding houses, senior group housing, and SRO hotels are conditionally permitted in the CR zone. Emergency shelters are permitted in all commercial zones. The City does not regulate supportive or transitional housing which occurs in single family homes and includes 6 or fewer residents. Transitional and supportive shelters for 7 or more that include social or medical services are permitted in residential zones with the same permitting requirements as similar uses in those zones. Transitional and supportive shelters that only provide housing are permitted as a residential use and only subject to those restrictions that apply to other residential uses of the same type in the same zone. HOUSING Table II-32 2013 Residential Development Standards Development Standard RVL RL RC RM RMH RH RSP RR Min. Lot Size for Single -Family 20,000 7,200 7,200 3,600 2,000 [A] [C] Dwelling Min. Project Size for N/A N/A N/A N/A 20,00 20,00 [A] N/A Multifamily Projects o 0 Min. Lot Frontage for Single -Family 100 6o 6o 50 40 N/A [A] [C] Dwellings (ft) Min. Frontage for N/A N/A N/A N/A 100 100 [A] [C] Multifamily Projects Max. Structure Height (fty 28 28 17 28 28 40 50 35 Max. No. of Stories z z 1 z z 3 4 z Min. Front Yard 30 zo zo zo zo zo [A] [D] Setback (ft) Min. Garage Setback N/A 20 20 20 zo 20 [A] [D] Min. Interior/Exterior Side Yard Setback 10/20 5/10 5/10 5/10 5/10 10/15 [A] [D] (ft) Min. Rear Yard 30 20/10 10 15 15 zo [A] [D] Setback (ft) Max. Lot Coverage 40 50 6o 6o 6o 6o [A] [C] (% of net lot area) Min. Livable Area 1,400 MF: Excluding Garage 2,500 1,400 1,400 1,400 (MF: [A] [C] (sf) 1 750) 750 Min. Common Open N/A N/A N/A 30% 30% 30% [A] [C] Area Min. Perimeter Landscape Setbacks 10/20 10/20 N/A 10/20 10/20 10/20 [B] [C] (ft) Source: City of La Quinta Municipal Code 2013 Within 150 feet of any General Plan designated Image Corridor is 17 feet in the RC zone and zz feet in other zones. [A] Subject to a specific plan. [B] See Section 9.90.040 of the Municipal Code. [C] Dependent upon use and density. [D] Setback criteria shall be determined based on the existing site conditions and surroundings, in conjunction with the guidelines and the proposed project characteristics. HOUSING II-92 Table II-33 2013 Permitted Residential Uses by Residential Zoning District Residential Zoning District Very Medium Low Low Cove Medium High High RVL RL RC RM RMH RH Land Use Conventional Housing Single -Family Detached P P P P P S Duplex S S S S P P Single -Family Attached S S X S P P Condominium Multifamily S S X S P P Apartment X X X P P P Multifamily Mobile Home Park C C C C C C Mobile Home Subdivision and P P P P P X Manufactured Home Resort Residential C C X C C C Special Needs Housing Congregate Living P P P P P X Facility (<6)' Congregate Care C C C C C C Facility z Emergency Shelter X X X X X X Guest House A A A X X X Residential Care Facility (>_6) 5 P P P P P P Second Unit A A A A A A Second Units (multiple) 6 C C X X X X Senior Citizen P P P P P P Residence (<6) Senior Group X X X X C C Housing (7+) 7 Single Room $ Occupancy X X X X X X Supportive and Transitional Shelter X X X C C C Source: City of La Quinta Municipal Code 2008 P = Principal use; C = Conditional use permit; M = Minor use permit; S= Specific plan; A = Accessory use; X - Prohibited use Single-family residential facility that is licensed by the state to provide living and treatment facilities on a monthly or longer basis for six or fewer developmentally disabled persons or six or fewer persons undergoing treatment for alcohol or drug abuse and that is permitted in single-family residences by operation of state law. HOUSING 11-93 A facility providing care on a monthly basis or longer that is the primary residence of the people it serves. It provides services to the residents such as dining, housekeeping, security, medical, transportation and recreation. s A residential facility licensed by the state to provide living and treatment facilities on a monthly or longer basis for six or fewer of the following: wards of the juvenile court, elderly persons, mentally disordered persons, handicapped persons or dependent and neglected children. Such a facility is permitted in all types of residences by operation of state law. e More than one guest house or second residential unit may be permitted on a lot with approval of a CUP in the Very Low/Low Density zones. A residential development developed or substantially renovated for and occupied by seven or more senior citizens (includes senior citizen hotels, retirement hotels and senior citizen apartments). s A residential facility that is rented on a weekly or longer basis and provides living and sleeping facilities for one or two persons per unit. Each unit contains a toilet and sink. Shower, kitchen, and laundry facilities may be shared. Table II-34 2013 Permitted Residential Uses by Nonresidential Zoning District Zoning District Major Regional Commercial Community Neighbor -hood Tourist Office Community Village Land Use Commercial Park Commercial Commercial Commercial Commercial Facilities Commercial CR CP CC CN CT CO MC VC Conventional Housing Single -Family Residential S X X X X X X V Multifamily Housing AHO AHO AHO AHO AHO AHO AHO AHO Resort Residential S X C X C X X X RV Rental/ Ownership Parks C X C X C X X X Special Needs Housing Emergency Shelter P P P P P P P P Rooming/ Boarding Housing C X X X X X X X Senior Group Housin 3 C X X X X X X X Single Room Occupancy Hotel 4 C X X X X X X X Transitional Shelter C X X X X X C X Source: City of La Quinta Municipal Code 2012 P = Principal use; C = Conditional use permit; M = Minor use permit; S= Specific plan; V = Village Use Permit; A = Accessory use; X = Prohibited use Residential over commercial mixed -use development will be permitted by right of zone in the CR, CP, CC, CN, CT, and CO zones (Program 1.5). Residential over retail i� already permitted in the VC zone with a Village Use Permit. Multifamily housing includes duplexes, apartments, and other types of housing for multiple families. s A residential development that is developed or substantially renovated for and occupied by seven or more senior citizens (includes senior citizen hotels, retirement hotels and senior citizen apartments). A residential facility that is rented on a weekly or longer basis and provides living and sleeping facilities for one or two persons per unit. Each unit contains a toilet anc sink. Shower, kitchen, and laundry facilities may be shared. HOUSING • I Density Bonus California law (Government Code Sec. 65915 et seq.) allows for an increase in the density of a residential development when a developer donates land or constructs affordable housing as a part of a project. The City updated its zoning code to reflect amendments to density bonus law during the 20o6-2013 planning period. A density bonus of zo percent above the maximum permitted density may be granted if a project includes 5 percent of the units at rates affordable to very low income households or to percent of the units at rates affordable to low income households. If to percent of the total units are affordable to moderate income households in a common interest development, then the project is eligible to receive a 5 percent density bonus. In addition, a sliding scale requires additional density bonuses above the base zo percent. The maximum density bonus is 35 percent over the maximum allowable density under the applicable zoning and General Plan designation. With a density bonus, allowable residential densities range from 2.7 units per acre in the RVL zone to 32 units per acre in the high density and mixed -use zones and specific plans. Projects that are restricted to senior residents are also eligible to a density bonus of zo percent without any income -restricted units. The density bonus is not required to exceed zo percent and is not subject to the sliding scale mentioned above unless a minimum number of income -restricted units are included. Second Unit and Guest House/Employee Quarter Requirements Second units are independent living quarters on existing home lots that typically provide affordable rental opportunities for lower and moderate income households, including seniors, disabled persons, single parents, domestic employees, and extended family members. Second units create additional housing opportunities on already developed or developing parcels. Second units are often referred to as "casitas" throughout the Coachella Valley. To facilitate affordable housing development second units are permitted in all residential -only zones. The City revised its Second Unit Ordinance in zoo7 to remove a requirement for a minor use permit and instead permits second units by right as an accessory structure. Additionally, the City now permits the construction of more than one second unit with the approval of a conditional use permit in the Very Low and Low Density Residential zones. HOUSING II-95 Conditions on the second unit (or units) require that no interest in the second residential unit may be sold separately from the remainder of the property, though the unit may be rented; that the lot contain an existing single-family dwelling that conforms to the minimum lot size requirement; that the second unit is no larger than 1,200 square feet or 30 percent of the primary home; and must have its own off-street parking space. More than half of the single-family detached homes approved in La Quinta in recent years include a second unit or guest house. Guest houses are detached or attached units with sleeping and sanitary facilities, but no cooking facilities. Per Municipal Code Section 9.6o.loo, no rent may be charged for residency or stay in a guest house. The purpose of guest houses is to provide free on -site housing for relatives, guests and domestic employees. This type of second unit is particularly important to provide housing opportunities for the City's extremely low income workforce. Similar to a second unit, a guest house may not exceed 3o percent of the square footage of the primary structure and must conform to lot coverage requirements. The City has also amended its zoning code to remove the requirement for a minor use permit, and to allow cooking facilities in guest houses, similar to second units. Manufactured Housing Requirements Manufactured housing and mobile homes are considered housing alternatives, especially for serving the needs of lower -income households. Manufactured homes and mobile home subdivisions are a permitted use in any residential -only zone except for High Density Residential. Manufactured housing on a single-family lot must obtain a minor use permit by approval of the Planning Commission to ensure that it is consistent with the development standards in single-family zones. Parking Reauirements Parking requirements in the City of La Quinta, shown in Table II-35, are typical for a city of its size with resort oriented characteristics. Additionally, the parking requirements for special needs uses are relatively minimal and facilitate the construction of such uses. Reductions required parking spaces is often a concession granted to affordable housing developers through the City's density bonus provisions. Overall, the parking requirements do not directly constrain the development of housing. HOUSING II-g6 The City is currently updating the Zoning Ordinance to allow the reduction or modification of parking requirements associated with multi -family development. Table II-35 ParkinL Reauirements for Residential Uses Land Use Minimum Off -Street Guest Spaces Parking Spaces Single -Family Units Single -Family Detached, z spaces per unit in a garage 0.5 guest space per unit if Single -Family Attached Tandem garages allowed in no on -street parking is and Duplex RC zone available Townhome z spaces per unit in a garage o.8 guest space per unit Mobile Home Park z covered spaces per unit o.8 guest space per unit (tandem permitted) Multifamily Units Studio 1 covered space per unit 0.5 guest space per unit One Bedroom 1.2 covered spaces per unit 0.5 guest space per unit Two Bedrooms z covered spaces per unit 0.5 guest space per unit Three or More Bedrooms 3 covered spaces per unit, 0.5 guest space per unit Plus 0.5 covered space per each bedroom over three Special Needs Guest House/Employee 1 covered or uncovered Quarters space. This space shall not be tandem. Second Unit 1 covered or uncovered space. This space shall not be tandem. Senior Group Housing, 5 covered spaces per unit 0.5 guest space per unit Senior Citizen Hotel, and Congregate Care Facility Single Room Occupancy 1 space per sleeping room Hotel Source: City of La Quinta Municipal Code 2oo8 Subdivision Improvement Requirements The City maintains subdivision improvement requirements that contribute to the cost of housing. In many cases, a developer may be required to provide any or all of the required improvements within a subdivision or a single residential project. Although the provision of these improvements or actions required to meet subdivision requirements may cumulatively add costs to the provision of housing, they are not considered a deterrent, as they are required throughout California with public safety as the underlying factor. Pertinent improvements include: HOUSING 11-97 • Full -width street improvements for all internal subdivision streets and alleys shall be installed, • Where a subdivision borders a public street, the developer shall provide half -width right-of-way improvements, plus one additional travel lane on the opposite side of the centerline if it does not already exist, • Additional rights -of -way or easements shall be provided to accommodate roadway slopes, multi -purpose paths, and other required facilities, • Minimum landscape setback widths shall be 20 feet from primary arterial streets, to feet from secondary arterial streets, and to feet from collector streets. • Local streets shall be a minimum of 6o feet in width with 36-40 feet curb to curb, and 10-12 feet for landscape parkway and cul- de-sacs shall be a minimum width of 50 feet with 32-36 feet curb to curb and 7-9 feet for landscape parkway, • Private streets are limited to 36 feet in width when parking is double loaded, 32 feet when single loaded, • Sidewalks are required to be provided on both sides of the street within public rights -of -way of all General Plan designated arterial and collector streets; for local streets in residential areas and in areas designated rural residential overlay where densities exceed 3 du/ac, • Transit facilities such as bus turnouts and covered bus shelters and benches are required if a bus stop occurs adjacent to the development site, on General Plan designated arterial and collector streets, • street width transitions; pavement elevation transitions and other incidental work deemed necessary for public safety may be required immediately adjacent to the development site, • Other improvements required to be provided by the developer may include traffic signs; channelization markings/devices; street name signs; medians; and mailbox clusters, • The developer shall provide improvements connecting the subdivision to the domestic water supply and distribution system operated by the Coachella Valley Water District, and is required to connect to an existing sewer collection system. Local Processing and Permit Procedures The cost of holding land by a developer during the evaluation and review process is frequently cited by builders as a contributing factor to the high cost of housing. The California Government Code establishes permitted time periods for local agencies to review and act upon private development proposals. Typical local development HOUSING II-g8 application processing times identified in Table 11-36 reflect both single - and multifamily uses. Multifamily projects generally have shorter processing times than single-family tract maps because Site Development Permits are approved at Planning Commission, while tract maps have to go to City Council for review. State -imposed time restrictions are identified in Table II-37. Table II-36 Local Development Processing Times Item Typical Length of Time From Submittal to Public Hearing Minor Use Permit i-2 weeks Village Use Permit 9-12 weeks Site Development Permit 8-10 weeks Conditional Use Permit 9-12 weeks Tentative Tract Map 10-12 weeks Variance 8-io weeks Zoning Amendments or Zone Change 9-12 weeks General Plan Amendment 12-i6 weeks Specific Plan 12-i6 weeks Environmental Documentation Runs with application Source: City of La Quinta 20o8 Table II-37 State Development Processing Time Limits Item State Maximum General Plan Amendment None Zone Change None Subdivision Action on Tentative Map 5o Days Environmental Documentation/CEQA Review of Application for Completeness 3o Days Determination of NEG DEC or EIR Requirement' 3o Days Completion of NEG DEC Requirement i05 Days Certification of Final EIR i Year Source:: City of La Quinta 2008 ' The City attempts to process the Negative Declaration so that it runs with application Site Development Permit The purpose of the site development permit process is to review detailed plans for proposed development projects to ensure that the standards of the Zoning Code, including permitted uses, development standards and supplemental regulations are satisfied. If the proposed project is part of a previously adopted Specific Plan, the review and approval of Site Development Permit application may be streamlined as called for in the Specific Plan. The site development permit process enables the Architecture and Landscape Review Committee and Planning Commission to review the site plan; architectural, lighting and HOUSING landscape plans; related development plans; and sign programs. The Architecture and Landscape Review Committee is a technical advisory group that is allowed one opportunity to make design recommendations, but they cannot establish conditions or grant approvals. The Planning Commission does not exercise discretionary review over the proposed land use; the focus on the Site Development Permit is on issues of site planning and design. A Site Development Permit may take a minimum of 6 weeks for review, but the process could take as long as almost 3 months, if unforeseen complications arise. To reduce the amount of time required for plan review, the City provides no -cost preliminary project review to give the applicant information on City requirements and project feedback prior to committing to the application process. Preliminary review can save the applicant both time and money, making the proposed development more cost effective. Minor Use Permit The only residential use requiring a MUP is manufactured housing established on a single-family lot. Most MUPs are administratively approved by Planning Department staff. On rare occasions, the project may be reviewed by the Planning Commission at a public hearing to ensure that it is consistent with the development standards in single- family zones. Conditional Use Permit A conditional use permit is required for senior group housing proposed in a CR, RMH, or RH zones, and for congregate care facilities in any residential designation. The CR zone also permits single-family residential and mixed -use office/residential with a specific plan and, multifamily uses and SRO uses with a CUP. The requirement for a CUP requires a public hearing before the Planning Commission. However, a CUP is often processed concurrently with an SDP; therefore no additional time is required for the processing of the CUP. Typical findings required to approve a CUP are consistency with the goals, objectives, and policies of the General Plan, consistency with the Zoning Code, compliance with CEQA, and certification that the proposed project is neither detrimental to the health, safety, and welfare of the public nor injurious to adjacent uses. The most common specific conditions of approval relate to mitigating environmental impacts such as erosion, storm water runoff, and traffic. These HOUSING 11-100 conditions are necessary to protect environmental integrity and public health and safety and are not considered a constraint to housing development. Discussions with affordable housing developers have consistently indicated that the City's CUP process does not inhibit the process or cost of building affordable housing. Specific Plan Specific plans are unique regulations designed to provide more flexibility than permitted through the Municipal Code. The processing of a specific plan can add 6 weeks to the project schedule. However, the additional entitlement rights, flexibility in design and use, and infrastructure negotiations obtained through the specific plan process generally outweigh the impacts of the additional time expenditure. Specific plans must be reviewed by the Planning Commission and City Council at a public hearing. In La Quinta specific plans are adopted by resolution. The required findings for approval are consistency with the goals, objectives, and policies of the General Plan; certification that the project does not create conditions that are detrimental to public health, safety, and welfare; and proof that uses are compatible with nearby uses and the property is suitable for the proposed project. The City allows the concurrent processing of applications to accelerate the process. For example, for a Specific Plan that also requires a CUP both permits would be processed at the same time so no additional review time is necessary. The City also provides for discounted application fees when multiple applications are filed concurrently. Overall, the processing periods and procedures are not considered a constraint to the production of housing by the development community. The City processes residential projects within statutory time frames. The processing period is actually expedited for projects within adopted specific plan areas, as environmental review has been conducted and standards have been imposed, e.g., exactions and payment schedules, design, etc., for the entire area and in itself does not significantly impact housing construction costs. Village Use Permit The purpose of the Village Use Permit (VUP) is to provide the City with an opportunity to review new development projects proposed in the Village Commercial (VC) zone. Any potential project applicant in the Village area has the option to file a preliminary development plan to ascertain anticipated conditions, requirements, and costs associated with a proposal. The preliminary development plan process is free of HOUSING 11-101 charge and encouraged as a means of providing clarity to the development community. All uses allowed as primary uses in the VC zone are permitted by right. The VUP is not a review of the actual use, rather it is a development review process used in the Village. Residential uses are permitted in the VC zone with a VUP. Most projects in the VC zone are infill and are exempt from CEQA and associated fees, thus streamlining the process and reducing development costs. The Village at La Quinta Design Guidelines (Guidelines) encourages the development of residential and mixed uses in the Village, and provides a greater level of flexibility for the applicant. The land use section sets forth the following general guidelines: • The Village shall include residential mixes • Residential uses shall locate above commercial uses in common buildings or may be in stand-alone multifamily buildings • Mixed use projects are not subject to any floor area ratio or lot coverage standards • Compact groupings are encouraged to promote pedestrian mobility The Guidelines provide more flexible design standards and do not contain requirements or standards that constrain the development of affordable or market rate housing. Village Use Permits are approved at regularly scheduled Planning Commission hearings. Typical findings for approval include consistency with the City's General Plan, Zoning Code, CEQA, Village at La Quinta Design Guidelines, and a determination that the proposed project will not be detrimental to public health, safety, and welfare or injurious to adjacent uses. Permitting Mixed Use Development Mixed use development can provide a lively, walkable, and convenient living and visiting experience. Mixed Use is allowed in most commercial zones in the City. The City has not determined any conditions of approval specific to mixed use development; conditions are determined on a case -by -case basis, reflecting the context and design of each project. Affordable housing developers in the area have indicated that the process in La Quinta has not posed a constraint to affordable housing projects. HOUSING 11-102 Development and Processing Fees Development fees set by the City and other regional fees, cover the costs for infrastructure, environmental protection, public services, and utilities incurred by residential development. These fees impact the cost of housing, and may therefore reduce the ability for unassisted market -rate housing to provide units affordable to low income households. In addition to City fees and assessments, developers of new dwellings will be obligated to pay Multi -Species Habitat Conservation Plan fees, Fish and Game fees, Art in Public Places fees, development impact fees (Table II-38), and other special district assessments that will impact residential projects. City fees either pay for the processing of an application or the funding of a proportional share of major facility fees associated with delivery of essential public services such as sewer, water, fire protection, stormwater drainage, and parks. Costs associated with the permitting process are a potential constraint to the development of low-income housing. Table II-39 presents an overview of City fees for an average 1,5oo-square-foot tract home with a two -car garage in a low density subdivision and an average 950- square-foot multifamily home with a two -car garage. In addition to these fees, all residential development whether in La Quinta or elsewhere in California is required to pay the State mandated school impact fee, which varies from year to year. In general, for residential development, the school impact fee is approximately $2.65 per square foot. The City has no control over this fee, and as it is charged in all cities, it cannot be considered a constraint on development in La Quinta. The City has recently overhauled its planning fee schedule, and also has joined into the regional Transportation Uniform Mitigation Fee (TUMF) program administered through CVAG. These fees and assessments correspond to and pay for the cost of processing various types of applications, as shown in Table II-40. However, the City offers a 75 percent cost reduction on fees when multiple applications are simultaneously processed, such as for a specific plan, EIR, and development agreement running concurrently on the same property. In such a case, the highest fee is charged in full, with the remaining fees charged at 75 percent discount. The City is also now tracking its applications on a time and deposit basis, as part of implementing the new fee schedule. HOUSING 11-103 While the fees charged by the City add to the cost of housing and therefore are a constraint to the provision of affordable housing, infrastructure improvements and processing must be paid. A comparison of the City's fees with other communities in the Coachella Valley indicates that the City generally charges comparable fees to other cities. Table II-38 Impact Fees Per Unit of Development Land Use Type Development Units Fee Residential (SFD)' Dwelling Unit $6,894 Residential (SFA) Z Dwelling Unit $6,681 Residential (MFA) 3 Dwelling Unit $5,030 Office/Hospital 1,000 SF $5,379 General Commercial 1,0000 KSF $6,456 Tourist Commercial Room $2,185 Golf Courses Acre $957 HOUSING I I-104 Table II-39 Development Fees for Typical Single -Family and Multifamily Homes Type of Fee Cost Per Unit I Multifamily' Single -Family' Building Fees Construction $422 $591 Plan Check (Standard Plan) $616 $818 Mechanical $69 $75 Plumbing 1 Bath = $120 2 Bath = $144 Electrical $126 $176 Strong Motion Instrumentation $5 $9 Grading $20 $20 CVWD Water/Sewer Fee $4,325 $4,325 TUMF* $1,276.8o $1,837.44 Other Fees (Location) Development Impact Fee $5,030 $6,894 SFD Multi -Species Habitat Conservation Plan 3 $521 $1,284 Fish and Game Fee (unfinished lot) Negative Declaration -flat $2,057 fee $2,052 $2,o5z Art in Public Places (Total Value) Based on project valuation charged at one quarter of 1 percent of anything over $200,000 or $20 minimum $20 $20 Quimby fees (if in -lieu of land dedication —fee payment only option for tracts of <50 lots/units) Based on per -acre FMV of land Based on per -acre FMV of land Total $13,326 $16,4o8 Source: City of La Quinta 2013 ' Calculated on a 950-square-foot unit for both 8 units per acre and 16 units per acre on a one - acre parcel. 2 Calculated on a 1,5oo-square-foot home for both single-family detached and single-family attached at 3 units per acre on a one -acre parcel. 3 $1,284/unit at o-8 DU/AC, $521/unit at 8.01-14 DU/AC, and $235/unit at >14 DU/AC *Based on trips generated per unit HOUSING I I-105 Table II-40 Planning Department Fee Schedule Item/Type Permit Base Fee General Conditional Use Permit General' Amendment $3,968 $1,859 Site Development Permit Amendment* Time Extensions* $5,577 $2,850 $1,359 Village Use Permit $5,577 Minor Use Permit* $zoo General Plan Amendment $6,149 Specific Plan $6,292 Specific Plan Amendments $2,36o Temporary Use Permit* $200 Variance $1,359 Certificate of Zoning Compliance* $572 Change of Zone $6,149 Zoning Text Amendment $6,149 Sign Permit* $200 Sign Program - When submitted after Site Development Permit approval $2,181 Land Division Parcel Map Waiver* Amendment* Revision* Time Extension* $3,432 $1,216 $2,038 $2,038 $715 Subdivision Tentative Tract Map Tentative Tract Amendment Time Extension* $5,577 $2,681 $787 Statutory Condominium Subdivision $3,861 Certificate of Compliance* 572 Other Permits and Fees Appeals* $1,573 Environmental Assessment $286 Development Agreement $1,859 Source: City of La Quinta 2013 * = Permit usually does not require CEQA review. HOUSING II-1o6 Building Codes and Enforcement The City of La Quinta has adopted the following State Codes: 2010 California Building Code, 2010 California Mechanical Code, 2010 California Plumbing Code, 2010 California Energy Code, and the 2010 California Electrical Code. In addition, the City enforces the 2010 California Code Fire Code, Residential Code, and Green Code. Starting in 2014, the City will begin enforcing the respective 2013 Codes. Overall, the Building Codes adopted by the City of La Quinta do not pose any special constraints on the production or cost of housing. The City has not made substantive amendments to the code that would adversely affect housing. The City of La Quinta enforces the Housing Code which provides minimum health and safety standards for the maintenance of the existing housing supply. These standards are intended to provide for safe and sanitary housing that is fit for human habitation. The enforcement of the Housing Code is normally handled on a complaint - response basis. The most common housing -related problem is illegal additions/garage conversions. Warnings are issued with a referral to the City and other agencies for remediation assistance. The Housing Code mandates that health and safety deficiencies be corrected in accordance with construction standards that were in effect at the time the structure was built. In cases where property owners refuse to correct deficiencies, enforcement of the Housing Code relies on civil sanctions. Constraints to the Provision of Housing for Persons with Disabilities State law, per Senate Bill 52o, requires that in addition to an analysis of special housing needs for persons with disabilities, the Housing Element must analyze potential governmental constraints to the development, improvement and maintenance of housing for persons with disabilities. Programs must be included to remove constraints to providing adequate housing for persons with disabilities. The City maintains general processes for individuals with disabilities to make requests for reasonable accommodation through the Zoning Code, the permit processing process, and building codes. The City integrated a reasonable accommodation process into its Zoning Ordinance during the last planning period. HOUSING 11-107 The updated Zoning Code does not restrict the location of group homes. Group homes (congregate care) with six or fewer persons are permitted by right in all residential zones except High Density; group homes of seven or more are permitted with a conditional use permit in all residential zones and the CR zone. Furthermore, senior group homes of six or fewer are permitted in all residential zones. Senior homes of more than six are permitted subject to a CUP in the RMH, RH, and CR zones. The Zoning Code also includes provisions for the reduction of parking requirements for affordable, senior and special needs housing, including senior and/or group homes, if a project proponent can demonstrate a reduced need for parking. The City also enforces ADA standards for the number of parking spaces required for persons with disabilities. There are no conditions or requirements imposed for group homes that would affect the development or conversion of residences to meet the needs of persons with disabilities. With the exception of the minimum age requirement established by the federal government, the conditions for senior housing in both residential and nonresidential zones do not affect the development of housing for persons with disabilities. There are no minimum distance standards between two or more special needs housing developments. The City of La Quinta has adopted the 2010 California Building Code, as well as the 2010 California Mechanical, Electrical, Energy, Fire, Residential, Green and Plumbing Codes. No amendments have been made to the codes that would diminish the ability to accommodate persons with disabilities. Starting in 2014, the City will begin enforcing the respective 2013 Codes. There are no restrictions on requests for retrofitting of homes for accessibility, such as ramps and handrails. Requests for such retrofits are handled as any other minor improvement to a home necessitating a building permit, with the exception that the design must meet all applicable standards and ADA requirements, and is reviewed at the inspection phase for conformance to construction requirements. Although requests for retrofit of existing homes have been extremely limited in the past few years, a number of homes advertised for resale in the Cove area have been retrofitted or built specifically for persons with physical disabilities and are described as such. HOUSING II-1o8 The public review process for the approval of group or senior homes is no different from any other permitted use in the applicable zone. Where a group or senior home is permitted by right, no public hearing is required. The project is brought to the Planning Commission if a CUP is required, and is subject to consideration and approval as any other use permitted by CUP. Where a senior group home may be requested with a CUP as part of a specific plan , the use would be considered and approved within the established public hearing process as part of the total specific plan and subject to the applicable Zoning Code provisions. Environmental and Infrastructure Constraints Development of new housing in La Quinta will continue to take place both north and south of Highway ill. Public services and infrastructure are being upgraded and expanded within the City. Major flood control programs have been funded by the City and constructed by the Coachella Valley Water District (CVWD) for the protection of the Cove Area. In response to growth, Desert Sands and Coachella Valley Unified School Districts operate several elementary schools, middle schools, and high schools that serve La Quinta residents. Three Riverside County Fire Department stations serve the City. The potable water system in the City is operated and administered by CVWD. The sanitary sewage collection and treatment system in the City is operated and administered by CVWD, which extends service based upon approved designs and improvements constructed by the private developer. The City of La Quinta is served by Southern California Gas Company. The Southern California Gas Company has indicated that the future supply of natural gas will meet demand generated by additional development in the City. Major infrastructure improvements, including full -width streets, water and sewer mains, and stormwater systems, are the responsibility of the developer to install with any development. Developers are required to provide parks or in -lieu fees as part of a residential development. When infrastructure improvements are made that benefit other properties, the subdivider is reimbursed from the area fund when other properties in the area are developed. HOUSING Opportunities for Energy Conservation The City has adopted a comprehensive Green and Sustainable La Quinta Program to enhance the City's conservation of resources and to reduce environmental impacts of existing and future conditions. This program will allow the City to consider a wide range of programs that will address energy, water, air quality, solid waste, land use, and transportation. Current Regulations and Programs Title 24 Regulations On a regulatory level, the City enforces the State Energy Conservation Standards (Title 24, California Code of Regulations). These standards incorporated into the City's Building Code provide a great deal of flexibility for individual builders to achieve a minimum "energy budget" through the use of various performance standards. These requirements apply to all new residential and commercial construction as well as remodeling and rehabilitation construction where square footage is added. Compliance with Title 24 on the use of energy - efficient appliances and insulation has reduced energy demand stemming from new residential development. Green Building Programs The two most prominent green building programs are California Green Builder, sponsored by the California Building Industry Association, and Leadership in Energy and Environmental Design (LEED), which is sponsored by the US Green Building Council. Both programs involve a third -party certification process, have different environmental goals, and apply to different types of development. Green Builder is a voluntary environmental building and certification program for residential construction. Certified homes will incorporate water -efficient landscaping and fixtures, utilize high efficiency insulation and ventilation systems, contain environmentally sound building materials, initiate waste reduction methods during construction, and be 15 percent over existing Title 24 energy efficiency standards. Green Builder has an existing partnership with Imperial Irrigation District (IID) and Burrtec Waste and Recycling Services (Burrtec) for builder and homeowner incentives. IID provides efficiency diagnostics, inspections, and a certification, which lead to financial incentives; and Burrtec provides a 15 percent-30 percent discount to builders for bin removal services. HOUSING 11-110 LEED is a national rating system for green buildings. Primarily focused on commercial and multifamily residential projects, LEED requires the developer to register their project with the US Green Building Council, who in turn reviews the project for conformance and assigns points based upon various efficiency, materials quality, and design factors. Once the Council has reviewed the project, it issues a certification based upon the number of points achieved in each category. City Projects The City has undertaken an aggressive series of green building programs that demonstrate the opportunities available to reduce the overall environmental impact of new developments. The Title 24 energy efficiency requirements significantly increase the overall energy efficiency of all new construction. Vista Dunes Courtyard Homes Located at 78-990 Miles Avenue (just west of Adams Street), the Vista Dunes project consists of 8o courtyard -oriented single-family and duplex homes. This LEED Platinum certified development includes photovoltaic cells to generate electrical power. This feature will annually save $720 per unit in electric utility costs. Water saving improvements will reduce water usage by 1,9oo,000 gallons per year for the entire project. It is estimated that this project exceeds Title 24 by 28 percent. Some of the units will exceed Title 24 requirements by 30 percent or more. At the time of its development, Vista Dunes Courtyard Homes was the first LEED Platinum certified multifamily affordable housing development of its size in the country. The City maintains a photographic history of the project and produced a video for educational purposes. Further, tenants will be educated on energy efficiencies through written materials, a DVD and the project operator, CORE Housing Management. Wolff Waters Place Housing Project This development exceeds Title 24 requirements by 24 percent and will save approximately 2,000,000 gallons of water from interior water use alone. Compliance with the new CVWD Ordinance will further reduce exterior water use. HOUSING The project is LEED certified and includes solar hot water for laundry buildings, a transit friendly location with a bus stop and shopping within walking distance, low -water -use landscape and irrigation, dual flush toilets, low -flow water fixtures, energy -efficient lights, ENERGY STAR appliances, recycled building materials, paint with low volatile organic compounds, reduced construction waste, advanced indoor air handling systems, underground parking, high efficiency air conditioning units, and a tenant training program. Greenhouse Gas Reduction Plan In conjunction with the adoption of its 2013 General Plan, the City adopted a Greenhouse Gas Reduction Plan. The Plan provides residents, business owners and land owners with a broad range of measures designed to reduce energy use and the use of fossil fuels. The Plan will be effective in reducing costs for existing homes and for new residential development. It will also allow changes in driving patterns, transit use and other measures that will reduce the City's dependence on traditional energy sources. Future City Programs/Actions The City seeks to encourage and enforce regulations or incentives that do not serve as constraints to the development or rehabilitation of housing. The City should focus on measures and techniques that assist the occupant in reducing energy costs, thereby increasing the amount of income that can be spent on housing, child care, health care, or other necessary costs. The implementation of a formal Green and Sustainable La Quinta Program will require participation of many city departments and agencies. Program costs could include energy audit upgrades for existing facilities and buildings, irrigation and landscape modifications to City -maintained properties, City fleet vehicles, and City maintenance equipment. The City's 2013 General Plan includes a Livable Community Element that provides direction on building siting, mixed use site planning, and energy reduction techniques. The element also includes a suite of policies and programs designed to lower energy costs, promote healthy living, and encourage high quality design. Under the direction of the City Manager's Office, Community Development and Community Services Department staff play an instrumental role in educating the community on water conservation programs and resources. HOUSING 11-112 Energy Conservation Partners In developing a better La Quinta the City cannot be successful without a sound relationship with Coachella Valley Water District, Imperial Irrigation District, Southern California Gas, Burrtec Waste and Recycling Services, Sunline Transit District, Coachella Valley Association of Governments, SCAG, and other entities. Additionally, many of the areas of concern, such as air quality and regional transportation, cannot be addressed without strong regional, state and federal programs. Utility Programs The City of La Quinta has a strong working relationship with the Imperial Irrigation District (IID). IID is proactive in creating energy savings via conservation programs, product rebates, and general tips. IID indicates that an average home owner can reduce energy use by to percent more by taking advantage of IID programs. IID offers rebate programs on the purchase of higher efficiency air conditioning units,the purchase of high efficiency refrigerators, and programmable thermostats. Additionally, product rebates are offered on ENERGY STAR equipment such as home and office electronics. IID also offers free in -home energy audits to its residential customers. IID also provides commercial programs such as audits for both older facilities and new construction; for new construction, IID offers design assistance. Rebate programs have been offered for solar panels and energy -efficient motors. HOUSING I I-113 HOUSING RESOURCES The City's RHNA is 364 units for the 2014-2021 planning period. The RHNA includes housing planning goals for four different income and affordability levels: very low, low, moderate, and above moderate. The City's RHNA by affordability level is 91 units of housing affordable to very low income households, 61 affordable for low income households, 66 affordable for moderate income households, and 146 above moderate income units. California housing element law allows local governments to obtain credit toward its RHNA housing goals in three ways: constructed and approved units, vacant and underutilized land, and the preservation of existing affordable housing. The City will rely on the construction of new units on vacant lands to meet its housing needs between 2014 and 2021. Constructed and Approved Housing Units During the 2014-2021 planning period, the City anticipates the rehabilitation and expansion of the Washington Street apartments. This project, which currently provides 72 affordable housing units, is planned to expand by constructing an additional 68 units affordable to very low income seniors. Of these 68 units, 26 are planned for extremely low income households. The project has been entitled, and is securing tax credit financing in 2013. Construction is expected to begin in 2014. Coral Mountain Apartments consists of 176 units, of which 36 are proposed to be affordable to very low income households, 138 to low income households, and 2 units will be affordable to moderate income households. The apartments will be completed in 2014, early in the 2014-2021 planning period. With the construction of these two projects, the City will meet all of its RHNA requirements for very low and low income households. The projects will result in the construction of 104 very low income units (13 more than the RHNA), and 138 low income units (72 more than the RHNA). As discussed earlier in this Element, current conditions in the real estate market make it possible for a moderate income household to afford market rate housing. Further, the rental market offers a broad range of units at rental rates of up to $1,285 per month. Table II-41 HOUSING I I-114 demonstrates the affordability of market rate rentals and home purchases in La Quinta for a moderate income four person household. Table II-41 Affordability of Housing 2013 Ownership Rental Median Existing $330,000 N/A Single Family Purchase Price Mortgage Costs $1,762 N/A (PITI) Rental Rate N/A $1,285 30% of Moderate $1,950 $1,950 Household Income Affordability $188 $665 Gap/Overage As shown in the table, the rental and resale market can accommodate some of the City's expected moderate income households during the 2014-2021 planning period. Altogether, the City has a moderate income RHNA of 66. Two units will be available for moderate income households at the Coral Mountain Apartments, and market rate rentals and resales will likely address the remaining need. The City had a vacant rental and ownership inventory of 1,66o units (see Table II-12) in 201o. The DOF estimates a similar vacancy rate in 2013. There is therefore considerable inventory available to meet the City's moderate and above moderate income RHNA of 18o units. The inventory of sites includes additional parcels (see below) that could accommodate moderate income housing. With the elimination of Redevelopment by the State, the City's ability to provide affordable housing in the future has essentially been eliminated. Given the City's active participation in affordable housing projects, this loss will be difficult to fill. The affordable housing needs of the community will forcibly require third party investment, whether from governmental or private sector sources. HOUSING 11-115 Table II-42 Constructed, Approved, and Pending Residential Projects Very Above Project Low Low Moderate Moderate Total Market Rate Projects Above Moderate Income Projects' 0 0 0 4,752 4,752 Income -Restricted Projects Coral Mountain Apartments 36 138 2 0 176 Washington Street Apartments Z 68 0 0 0 68 Total Constructed/Approved Projects too 138 2 4,752 4,996 2006-2014 RHNA 91 61 66 146 364 Balance of RHNA Allocation (13) (77) 64 (4,683) 64 Source: SCAG RHNA, City of La Quinta ' Based on vacant land available in the Low Density Residential General Plan category. 2 The units shown are new units and are in addition to 72 existing units that will be rehabilitated as a part of the project. Available Land for Housing With the previously described housing production credits, the City of La Quinta has a remaining unmet RHNA of 64 units for moderate income households. The Housing Element must identify available sites within the City that can accommodate the remaining unmet RH NA. The land inventory includes an analysis of the realistic capacity of the sites. An evaluation of zoning, densities, market demand, record of affordable housing development, and financial feasibility will establish the ability of available sites to provide housing for all income levels. Available Vacant Land The vacant land inventory only includes parcels that the City has identified as having the potential to develop during the 2014-2021 planning period. Additional vacant sites are located in the City, but are not assumed to have the potential to satisfy the current RHNA. The development potential for Village Commercial (VC) sites is assumed to be improved through logical consolidation with adjacent vacant lots. The City will encourage and facilitate lot consolidation in this district through incentives provided in Programs 1.5 and 3.5. The City's flexible HOUSING 11-116 development and use standards further facilitate the development of a range of housing types. Table II-43 provide a summary and illustration of the vacant land development potential within the City. All these sites were included in the City's inventory for the 2oo6-2013 planning period, but were not utilized. Table II-43 Vacant Land Inventory Map Owner APN Acres Existing Projected Projected Key GP/Zoning Density Yield RMH Sites 14.0 28o 646- DR/RMH(AH 1' AH 070-013 14.0 O) 20 28o Village Sites 770-122- 2a X 015 0.1 VC/VC 14 1 770-122- 2b y 014 0.1 VC/VC 14 1 770-122- 2c y 013 0.1 VC/VC 14 1 770-122- 2d Z 012 0.1 VC/VC 14 1 770-122- 2e Z 011 0.1 VC/VC 14 1 770-122- 21F Z 010 0.1 VC/VC 14 1 770-122- 2g AA 009 0.1 VC/VC 14 2 0. Site 2 Subtotal 5 8 770-152- 3a AB 005 0.1 VC/VC 14 2 770-152- 3b AB oo6 0.1 VC/VC 14 2 770-152- 3c AC 007 0.1 VC/VC 14 2 Site 3 Subtotal 0.34 6 770-155- 4 AD 001 0.40 VC/VC 14 6 770-156- 5a AE 007 0.23 VC/VC 14 3 770-156- 5b AF oo6 0.28 VC/VC 14 4 770-156- 5c AG 010 0.39 VC/VC 14 5 770-181- 5d AG 009 0.36 VC/VC 14 5 Site 5 Subtotal 1.26 18 HOUSING I I-117 Table II-43 Vacant Land Inventory Map Owner APN Acres Existing Projected Projected Key GP/Zoning Density Yield 6a M 73-101-013 0.7 VC/VC 14 10 773-094- 6b N 013 o.6 VC/VC 14 8 773-094- 6c N 004 0.1 VC/VC 14 1 773-094- 6d N 003 0.1 VC/VC 14 1 773-094- 6e N 002 0.1 VC/VC 14 1 773-094- 6f N 001 0.1 VC/VC 14 1 Site 6 Subtotal 1.6 24 7a O 3-072-019 0.3 VC/VC 14 5 773-072- 7b P 005 0.1 VC/VC 14 1 773-072- 7c P 027 0.1 VC/VC 14 1 773-072- 7d P 026 0.1 VC/VC 14 1 773-072- 7e P 025 0.1 VC/VC 14 2 773-072- 7f P 024 0.1 VC/VC 14 2 773-072- 7g P 023 0.1 VC/VC 14 1 773-072- 7h P 022 0.1 VC/VC 14 1 7i P 3-072-021 0.1 VC/VC 14 1 773-073- 71 Q 004 0.1 VC/VC 14 2 773-073- A R 005 0.1 VC/VC 14 2 773-075- 71 S 008 0.1 VC/VC 14 2 773-075- 7m S 009 0.1 VC/VC 14 2 7n T 3-077-014 o.8 VC/VC 14 11 70 M 3-077-013 0.4 VC/VC 14 5 Site 7 Subtotal 2.7 38 773-078- 8a U 005 0.1 VC/VC 14 2 773-078- 8b V oo6 0.1 VC/VC 14 2 773-078- 8c V 007 0.1 VC/VC 14 2 773-078- 8d w o16 0.1 VC/VC 14 2 HOUSING II-118 Table II-43 Vacant Land Inventory Map Key Owner APN Acres Existing GP/Zoning Projected Density Projected Yield 8e w 773-078- 017 0.1 vC/vC 14 z Site 8 Subtotal p.6 8 Total All Sites 1 21.4 388 Site Adequacy Analysis The sites shown in Table II-43, above, all accommodate residential development at various densities. Site 1 is residentially designated, and benefits from the Affordable Housing Overlay, which increases its density potential (please see below). During the previous planning period, residential development in La Quinta was built at or near the maximum allowable densities. For example, development in the RM zone generally occurred at the maximum density of 8 units per acre or above through density bonus provisions. Centerpointe, an approved 224-unit project will be built at densities of 7.6 units per acre in the RM zone. Older examples include the Miraflores Apartments, which were constructed at a density of 11.2 units per acre in the RM zone in 2003. In 2004, Hadley Villas Apartments were developed at a density of 7.8 units per acre in the RM zone. In 2001, the Aventine Apartments were constructed at a density Of 14.3 units per acre in the RH zone. In 2004 Silverhawk Apartments were constructed in the VC zone —which currently permits residential projects up to 16 units per acre, with the potential for 24 units per acre if the Affordable Housing Overlay is applied —at a density of 19.3 units per acre under density bonus provisions. The Silverhawk project provides 214 units, 14 of which are located above 9,435 square feet of retail space. Restricted -affordable projects such as Wolff Waters Place was built at 14.7 units per acre. Although the Washington Street Apartments expansion and Coral Mountain Apartments construction will exceed the City's RHNA for very low and low income households, and current economic conditions allow moderate income households to afford market rate rental and resale properties„ additional sites have been identified to increase residential development potential. Based on these existing development trends, vacant sites are assumed to build out at densities near or at the maximum density permitted in HOUSING each zone during the planning period. Unit yield projections for vacant sites do not include a density bonus or second units. Environment and Infrastructure Analysis None of the parcels identified in the vacant land inventory are located in areas of topographic constraint or have known environmental hazards. The sites identified in the vacant land inventory are adjacent to existing urbanized development and are within service hook-up distance of existing water and sewer systems. According to the latest Coachella Valley Water Management Plan (2002), the implementation of water conservation, groundwater recharge, and water source substitution management strategies will ensure that adequate water resources are available to existing and future residents of La Quinta. Capacity Analysis The City will meet its RHNA for very low and low income households with the construction of the Washington Street Apartment expansion and the Coral Mountain Apartments. Further, the Coral Canyon Apartments will provide two units for moderate income households. This leaves a RHNA need of 64 units for moderate income households. As described above, the median sales price for a resale home was approximately $330,00o and the highest rent for an apartment unit was approximately $1,285 per month. In comparison, the maximum affordable sales price for a moderate income family of four is $328,9oo and the maximum affordable rent for a moderate income couple is $1,56o per month. Moderate income households, therefore, can afford to rent in the City, and are able to afford purchasing resale homes that are lower than the median price currently. Some moderate income households, especially one and two person households or larger families, will need assistance to purchase a home. The subsidy can be provided by affordable housing developers, which have constructed thousands of affordable units in La Quinta and the Coachella Valley in the past. Affordable housing developers often have access to government funds, grants, and tax subsidies that market -rate developers do not. Additionally, affordable housing developers are driven by the goal of providing affordable housing rather than maximizing profit. Affordable housing developers still, however, seek a lower internal rate -of -return. General proforma analyses were conducted using land costs ($75,000- $150,000 per acre outside of the City's developed center and HOUSING 11-120 approximately $1 million in the Village area) and construction costs ($150 per square foot according to affordable housing developers contacted in the preparation of this Update) to estimate the capacity of land in La Quinta to support affordable housing. The results indicate that homeownership products will remain available to moderate income households without a very large subsidy. The developers of ownership projects require financial returns through the one-time sale of the housing units. A generally accepted minimum project size for affordable housing development is 50 units. Like their higher density counterparts, lower density sites able to accommodate 50 units are eligible for funding mechanisms such as Low Income Housing Tax Credits (LIHTCs), a type of restricted development that must meet strict size and amenity guidelines to compete for funding. High density is also not a determining factor in obtaining other resources, such as HOME funds and Community Development Block Grant program funding. The RM and RMH sites identified in Table II-43 above, would both allow a minimum project size consistent with these requirements. Financial and Regulatory Subsidies A subsidy can be financial or regulatory in nature. Financial subsidies are found in federal, state, local, and private programs and organizations focused on the production of affordable housing. Developers in La Quinta use and leverage many sources of financial assistance. Projects may seek funding from Low Income Housing Tax Credits, tax-exempt bonds, Community Development Block Grants, HOME funds, other HUD grant programs, and commercial banking resources. Regulatory subsidies can take many forms, including fee waivers or deferrals, flexible development standards, and increased densities. Higher densities generally increase the financial feasibility of a residential project as a developer is able to sell more housing units on the same amount and cost of land (even with slightly lower sales prices associated with smaller, attached units). The City's vision recognizes the importance of providing affordable housing for its residents and employees. Accordingly, the City supports affordable housing development through financial and regulatory subsidies and permits densities up to 24 units per acre with the Affordable Housing Overlay (higher densities are permitted through density bonus provisions). The City is thereby able to achieve both the HOUSING 11-121 goal of maintaining lower density community character while also producing its fair share of affordable housing. Vacant Land Opportunities In the last decade the City has established a strong record of providing assistance to affordable multifamily housing projects (townhomes and apartments), ranging in density from 7.8 to over 20 units per acre. Single-family detached assisted housing was also developed, with City assistance, at densities as low as 4.4 units per acre and up to 7.8 units per acre. La Quinta is able to achieve market -driven moderate income housing through the relative affordability of land, the local market demand for lower maintenance housing types, the depressed state of the housing market, and reasonable development impact and entitlement fees. La Quinta has a solid record of working with local nonprofits and affordable housing developers to accommodate the housing needs of its lower income residents. The vacant land inventory provides the City and affordable housing developers with a map of opportunity areas. The moderate income housing need can be met without any mixed -use development. However, the City recognizes that mixed -use developments will play a role in moderate and above moderate housing opportunities in the future. Both the General Plan and the Zoning Ordinance have been modified to encourage Mixed Use development. Because of the current economy, however, there has been no such development proposal constructed in the City. Mixed Use properties are therefore not included in this inventory. HOUSING 11-122 PRESERVATION OF AT RISK UNITS State Government Code requires that localities identify and develop a program for their Housing Elements for the preservation of affordable multifamily units assisted under various federal, state and local programs. In the preservation analysis, localities are required to provide an inventory of assisted, affordable units that are eligible to convert to market rate within five years of the end of the planning period (2026). Income -restricted housing units sometimes change to market rate due to expiration of subsidies, mortgage prepayments, or expiration of affordability restrictions. The earliest possible date of conversion for any of the City's restricted multifamily housing stock is 2024 for the 45 very low and 46 low income units at Seasons Senior Apartments. An inventory of all assisted multifamily projects is provided in Table II-44• Table II-44 Assisted Multifamilv Proiect Inventory Earliest Date of Very Above Project Conversion Low Low Moderate Moderate Total Aventine Apartments 2056 0 10 10 18o zoo Hadley Villas Senior Apartments 2059 81 0 0 0 81 Miraflores Senior Apartments 2029 35 83 0 0 118 Seasons Senior Apartments 2024 45 46 0 0 91 Vista Dunes Courtyard Homes 2o63 79 0 1 0 8o Washington Street Apartments ' 2o66 72 0 0 0 72 Wolff Waters Place 2o65 216 0 2 0 218 Total N/A 528 139 88 305 i,o6o Source: City of La Quinta ' The existing 73 units will be rehabilitated. Covenants for the entire project will run for 55 years (2o66). HOUSING 11-123 Maintenance of the at -risk housing units as affordable will depend largely on market conditions, the status of HUD renewals of Section 8 contracts, and the attractiveness of financial incentives, if warranted. The cost to replace the 91 units at the Seasons Apartments will vary based on the timing of replacement and the economic conditions in the region. The Building Industry Association estimates that new multiple -family projects cost $125 to $130 per square foot. Using the average square footages of 1,000 square feet, the building replacement cost would be $11.83 million dollars. Perhaps the most effective means for preserving affordable units at risk of conversion to market rates units would be the transfer of ownership. A nonprofit housing corporation could purchase the project, rehabilitate it using Low Income Housing Tax Credits, and then extend the affordability controls. Qualified entities who could take on these projects include Habitat for Humanity and the Coachella Valley Housing Coalition, both of whom have been actively participating in affordable housing projects in the City. The City could facilitate this effort through a reduction in building permit fees, impact fees, or other indirect assistance. However, because of the elimination of redevelopment, the City will be unable to consider the purchase of these properties, and will have to rely on third party private sector involvement for the preservation of these units. Program H-2.3.c addresses the preservation of these units. HOUSING I I-124 GOALS, POLICIES, AND PROGRAMS The following goals, policies, and programs set forth a comprehensive housing plan for the City of La Quinta during the 2014-2021 planning period. Adequate Sites for Housing GOAL H-i Provide housing opportunities that meet the diverse needs of the City's existing and projected population. ❖ Policy H-1.1 Identify adequate sites to accommodate a range of product types, densities, and prices to address the housing needs of all household types, lifestyles, and income levels. Program 1.1.a: To address the City's RHNA allocation for extremely low income households, 26 of the 68 new units at the Washington Street Apartments will be designated for extremely low income households. The additional 19 units identified in the RHNA will be given priority either at Washington Street Apartments, or at projects on sites identified in the Vacant Land Inventory (Table II-43)• ■ Objective: Encourage the provision of 45 extremely low income units in new projects during the planning period. • Timing: 2015 for 26 units, 2015-2021 as projects are constructed for 19 units ■ Funding Source: Private Funding, Tax Credit Financing, Other sources as identified ■ Responsible Agency: Planning Department ❖ POlicy H-1.2 Focus housing growth within existing City boundaries until it is necessary to pursue annexation or development in planning areas for affordable housing. ❖ Policy H-1.3 Direct new housing development to viable areas where essential public facilities can be provided and employment opportunities, educational facilities, and commercial support are available. HOUSING I I-125 Assist in the Development of Affordable Housing GOAL H-2 Assist in the creation and provision of resources to support housing for lower and moderate income households. ❖ Policy H-2.1 Increase housing choices for lower and moderate income households. ❖ Policy H-2.2 Support public, private, and nonprofit efforts in the development of affordable housing. ❖ Policy H-2.3 Pursue a variety of forms of private, local, state, and federal assistance to support development of affordable housing. Program H-2.3.0: Collaborative Partnerships The City shall meet with parties interested in affordable housing development to discuss types of incentives available and requirements for obtaining assistance, discuss appropriate sites for affordable housing, and foster professional collaboration between the City and affordable housing stakeholders. ■ Objective: Continue to collaborate with nonprofits and the development community to develop affordable housing. ■ Timing: Project -by -project basis, by request, or on an annual basis. ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-2.3.b: Affordable Housing Renter -to -Owner Transition Low Income Housing Tax Credit (LIHTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low income households. LIHTC projects can transition from rental to ownership units. The units must remain rentals for 15 years, at which time some projects convert to ownership units. Typically a portion or all of the rent paid for the 5 years prior to the conversion is put toward the purchase of the unit. This enables lower income households to invest in the property in which they have been living and benefit from its appreciation. HOUSING II-126 Existing stalled condominium and townhome projects are prime opportunities for low income tax credits to be used for renter -to - owner programs. ■ Objective: Investigate the use of LIHTCs to finance affordable single-family attached rental development that can transition, after 15 years, into moderate income ownership housing. ■ Timing: Complete study by end of fiscal 2015 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-2.3.c: Affordable Housing Renter -to -Owner Transition There are many resources that the City, nonprofits, or for -profit developers may utilize to subsidize the construction and maintenance of affordable housing. Some of the most prominent resources are described below. ■ Objective: Advertise other financial resources through the affordable housing page of the City's website, apply for grants and competitive loans, and form partnerships with the development community to obtain additional financial resources. ■ Timing: Update website with funding information and partnership opportunities every six months or earlier if appropriate. ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Low Income Tax Credits Low Income Housing Tax Credit (LIHTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low income households. A minimum of 20 percent of the units must be affordable to low income households and 40 percent of the units must be affordable to moderate income households. Community Reinvestment Act The Community Reinvestment Act provides favorable financing to affordable housing developers. The Redevelopment Agency, development community, and local, regional, and national banks are encouraged to work together to meet their obligations pursuant to the Community Reinvestment Act. HOUSING 11-127 California Housing Finance Agency Program The California Housing Finance Agency (CHFA) has three single- family programs for primarily moderate and middle income homebuyers: the Home Ownership Assistance Program and the Affordable Housing Partnership Program. Each provides permanent mortgage financing for first-time homebuyers at below -market interest rates. HOME Funds HOME is the largest Federal block grant distributed to state and local governments for the creation of lower income housing. Cities apply when Notices of Funding Availability are issued. Neighborhood Stabilization Program HUD's Neighborhood Stabilization Program makes emergency assistance grants available to local governments for the acquisition, redevelopment, and renting or resale of foreclosed properties at -risk of abandonment. Riverside County First -Time Homebuyers Program Continue participation in the Riverside County First -Time Homebuyers Program for low and moderate income households. Mortgage Credit Certificate The Riverside County Mortgage Credit Certificate Program is designed to assist low and moderate income first time homebuyers. Under the Mortgage Credit Certificate Program, first-time homebuyers receive a tax credit based on a percentage of the interest paid on their mortgage. This tax credit allows the buyer to qualify more easily for home loans, as it increases the effective income of the buyer. Under federal legislation, zo percent of the funds must be set aside for buyers with incomes between 75 and 8o percent of the county median income. Finance Agency Lease -Purchase Program Riverside/San Bernardino County Housing Finance Agency Lease Purchase Program provides down payment assistance and closing costs for eligible households up to 140 percent of the area median income. HOUSING I I-128 Housing Choice Voucher (formerly Section 8) Referrals Housing Choice Vouchers allow lower income households to use rental subsidies anywhere in the County, including La Quinta. Program H-2.3.d: Sweat Equity and Shared Equity Sweat equity and shared equity programs provide lower and moderate income households with ownership assistance. Sweat equity refers to the exchange of time and effort, usually in the form of construction activities, for an affordable ownership opportunity. ■ Objective: Continue to work with organizations that offer sweat and shared equity housing programs to lower and moderate income households in La Quinta. ■ Timing: Meet with organizations annually or more frequently (if requested or advantageous) to identify opportunities for coordinated efforts or potential housing projects. ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Removal of Governmental Constraints to Housing GOAL H-3 Create a regulatory system that does not unduly constrain the maintenance, improvement, and development of housing affordable to all La Quinta residents. ❖ Policy H-3.1 Remove unnecessary regulatory constraints to enable the construction or rehabilitation of housing that meets the needs of La Quinta residents, including lower income and special needs residents. ❖ Policy H-3.2 Coordinate the development of affordable housing with the provision of key utilities to ensure prompt and adequate service. ❖ Policy-1�3 Incentivize the development of affordable housing to facilitate the development of housing for the City's lower and moderate income households. HOUSING Program H-3.3.a: Priority Water and Sewer Service In compliance with state law, the Coachella Valley Water District (CVWD) must create procedures to provide priority water and sewer service to lower income residential project. The law also prohibits the denial or conditioning the approval of service without adequate findings, and requires future water management plans to identify projected water use for lower income residential development. ■ Objective: Route the adopted Housing Element to the CVWD and notify them of changes and future updates to the Housing Element. ■ Timing: Upon Housing Element adoption ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-3.3.b: Reduced Parking Standards There are several potential opportunities to reduce parking standards for special types of development in La Quinta. While the City already has special parking standards for multifamily senior housing, there is potential to further reduce those requirements, particularly for lower and moderate income senior housing. The compact, mixed -use character of the Village area may also foster opportunities for parking reductions or joint -use opportunities. Lower and moderate income households may own fewer vehicles than above moderate income households, and be more inclined to walk or use public transportation. Incentives such as reduced parking requirements could be offered for affordable housing developments. ■ Objective: Study the potential impacts of adopting reduced parking requirements or shared parking standards for senior housing and housing in the Village, particularly for projects serving lower and moderate income households. ■ Timing: Zoning Ordinance Update 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-3.3.c: Encourage Lot Consolidation Several small lots in the Village Commercial would have improved development potential through lot consolidation. The City will study, identify, and adopt regulatory incentives to encourage and facilitate lot consolidation. Potential incentives include fee deferral or reductions, parking requirement reduction, and relief from various other HOUSING I I-130 development standards that could potentially increase the cost of the project. ■ Objective: Identify opportunities and adopt incentives for lot consolidation in the Village Commercial zone ■ Timing: July 1, 2015 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department GOAL H-4 Conserve and improve the quality of existing La Quinta neighborhoods and individual properties. ❖ Policy H-4.1 Protect the quality of La Quinta's neighborhoods through the rehabilitation of both affordable and market -rate homes. ❖ Policy H-4.2 Promote financial and technical assistance to lower and moderate income households for housing maintenance and improvements. ❖ Policy H-4.3 Encourage the retention and rehabilitation of existing single-family neighborhoods and mobile home parks that are economically and physically sound. ❖ Policy H-4.4 Enhance neighborhoods that presently provide affordable housing with drainage, lighting and landscape amenities, and parks and recreation areas. Program H-4.4.a: Housing Condition Monitoring To better understand the City's housing needs the quality and condition of the housing stock must be inventories on a regular basis. The inventory should focus on older neighborhoods, such as those south of Calle Tampico, west of Washington Street, and north of Highway ill. ■ Objective: Maintain an inventory of housing conditions (updated approximately every five years) to enable the City to properly target Code Compliance and rehabilitation resources. HOUSING I I-131 ■ Timing: Complete by June 30, 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-4.4.b: County of Riverside Senior Residential Rehabilitation The Minor Senior Home Repair program allocates grants up to $250 per year for lower income seniors for minor housing repairs, such as painting doors or trim, or repairing a window. The Enhanced Senior Home Repair Program provides major rehabilitation and repair for low income seniors, providing a one-time grant for repairs to homes owned and occupied by seniors and/or persons with disabilities. The maximum level of assistance for this program is $3,000 per year. ■ Objective: Continue to refer code violators and interested parties to the County of Riverside Minor and Enhanced Senior Home Repair programs and other local resources. Assist homeowners in completing applications as necessary. ■ Timing: Throughout planning period, on a case -by -case basis ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-4.4.c: County of Riverside Home Repair Grant The County of Riverside Economic Development Agency Home Repair Program provides lower income households with up to $6,000 for home repairs such as a new roof, new air -conditioner, or a handicap ramp. As a jurisdiction in Riverside County, lower income La Quinta households are eligible for this grant. ■ Objective: Refer code violators and interested parties to the County of Riverside for home repair grants. ■ Timing: Throughout planning period, on a case -by -case basis ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-4.4.d: Rehabilitation Resources List Lower and moderate income homeowners may need assistance in affording important home repairs and improvements. The City can assist these households by compiling and sharing a listing of local, state, and federal programs offering rehabilitation assistance. ■ Objective: Provide a rehabilitation resources list on the affordable housing and code compliance pages of the City's website. Use the list, in online or printed form, as a reference for code violators. HOUSING I I-132 ■ Timing: Create list by June 30, 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Equal Housing Opportunity GOAL H-5 Provide equal housing opportunities for all persons. ❖ POI_ic_y-5.1 Provide the regulatory framework to create an environment in which housing opportunities are equal. ❖ Policy 5.2 Encourage and support the enforcement of laws and regulations prohibiting discrimination in lending practices and in the sale or rental of housing. ❖ Policy 5.3 Encourage support services for the Coachella Valley's senior and homeless populations through referrals and collaborative efforts with non -profits and other jurisdictions. ❖ Policy 5.4 Assist in the creation of a continuum of care for the homeless population and those transitioning into permanent housing. ❖ Policy 5.5 Improve quality of life for disabled persons by facilitating relief from regulatory requirements that may create barriers to accessible housing and promoting universal design. Program H-5.5.a: Regional Facilities for the Homeless Continue to support and collaborate with the Coachella Valley Association of Governments Homelessness Committee efforts to maintain a regional homeless facility that provides housing as well as supportive services. The Strategic Plan created by the Homelessness Committee establishes a continuum of care for the Coachella Valley. ■ Timing: City staff will continue to collaborate with CVAG throughout the planning period (2014-2021), and work with the appropriate facilities directly. HOUSING 11-133 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-5.5.b: Transitional Housing and Permanent Supportive Housing Transitional housing typically accommodates homeless people for up to two years as they stabilize their lives and does not meet emergency needs. Transitional housing includes training and services that are vital for rehabilitating and enriching the lives of the formerly homeless. Transitional housing facilities provide families and individuals with a safe place within which to rebuild their lives and prepare for independence. Permanent supportive housing is affordable housing with on- or off -site services that help a person maintain a stable, housed, life. ■ Objective: The Zoning Ordinance shall allow transitional and supportive housing as a residential use in all zones which allow for residential development, and subject only to those restrictions that apply to similar residential uses (single or multi- family units) of the same type in the same zone, and will not be subject to any restrictions not imposed on similar dwellings, including occupancy limits. ■ Timing: Coordinate with 2009/2011 General Plan Update ■ Funding Source: General Fund ■ Responsible Agency: Planning Department Program H-5.5.c: Fair Housing Referrals Fair housing organizations provide dispute resolution and legal assistance to tenants and landlords in conflict. Such services are particularly important for lower and moderate income households unable to afford counsel. ■ Objective: Continue to refer tenants and landlords to the Fair Housing Council of Riverside County. Provide information on fair housing resources on the City's website and at City Hall. Identify and coordinate with local nonprofits, service organizations and community groups that can assist in distributing fair housing information. ■ Timing: Referral service as needed. Information to be placed on website and local groups identified by January 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department HOUSING 11-134 Program H-5.5.d: Directory of Services While numerous services are available to special needs and lower income households, it can be difficult to readily have access to these resources. A directory provides the contact information necessary to seek housing assistance. ■ Objective: Develop an online directory of services and information to provide La Quinta residents with contact information for community organizations and service providers that address special needs. ■ Timing: Update website by March 2014 ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Energy and Water Conservation GOAL H-6.i Provide a regulatory framework that facilitates and encourages energy and water conservation through sustainable site planning, project design, and green technologies and building materials. ❖ Policy H-6.1 Promote higher density and compact developments that increase energy efficiency and reduce land consumption. ❖ Policy H-6.2 Facilitate housing development and rehabilitation that conserves natural resources and minimizes greenhouse gas emissions. ❖ Poljcy H-6.3 Encourage and enforce green building regulations or incentives that do not serve as constraints to the development or rehabilitation of housing. ❖ Policy H-6.4 Focus sustainability efforts on measures and techniques that also assist the occupant in reducing energy costs; therefore reducing housing costs. HOUSING II-135 ❖ Policy H-6.5 Use and encourage emerging technologies to reduce high demands for electricity and natural gas including use of passive solar devices and where feasible other renewable energy technologies (e.g., biomass, wind, and geothermal). Program H-6.5.0: Green and Sustainable La Quinta Program Continue to implement the Green and Sustainable La Quinta Program. ■ Objective: Implement green goals, policies, and programs that accurately represent the City's direction in resource conservation and minimizing greenhouse gas emissions. Implement design standards for residential and commercial structures that encourage solar protection to directly result in energy conservation. ■ Timing: As projects are proposed ■ Funding Source: General Fund ■ Responsible Agency: Community Development Department Program H-6.5.b: Energy Conservation Partners In working toward a sustainable La Quinta, the City and its residents will need to collaborate with utilities and service providers. Partnerships with the Coachella Valley Water District, Imperial Irrigation District, Southern California Gas, Burrtec Waste and Recycling Services, Sunline Transit District, Coachella Valley Association of Governments, Southern California Association of Governments and other entities will be an important component of making La Quinta a more livable city. ■ Objective: Continue to meet with and seek insight from utilities, service providers, and other entities involved in energy conservation efforts appropriate for La Quinta. ■ Timing: As part of regular coordination meetings with utilities ■ Funding Source: General Fund ■ Responsible Agency: City Manager's Office/Community Development Department Program H-6.5.c: Imperial Irrigation District Programs The Imperial Irrigation District (IID) is proactive in energy savings via conservation programs, product rebates, and general tips. An average home owner can save up to 10 percent on energy/energy bills by taking advantage of IID programs. Home owners can utilize the free "Check Me!" program, which checks the refrigerant charge and airflow of their HOUSING II-136 air conditioning/heating units. IID also offers a rebate on the purchase of higher efficiency air conditioning units, high efficiency refrigerators, programmable thermostats, and ENERGY STAR equipment. City staff has held several meetings with IID representatives to discuss opportunities for collaboration to conserve energy in La Quinta, including water management opportunities for golf courses and golf - oriented communities. ■ Objective: Maintain contact with IID to market energy efficiency programs and rebates that are most beneficial to La Quinta residents and homeowners. ■ Timing: Quarterly through Desert Cities Energy Partnership meetings ■ Funding Source: General Fund, IID program funds, and potential AB 811 special assessment district funds ■ Responsible Agency: City Manager's Office/Community Development Department Program H-6.5.d: Weatherization Assistance The Federal Department of Energy's Weatherization Assistance Program, in conjunction with state and local programs, provide low or no cost weatherization and insulation services to reduce the heating and cooling costs for low income households. ■ Objective: Encourage low income homeowners or renters to apply for free energy audits, home weatherization, and utility rebate programs by advertising available programs on the City's website and at City Hall. ■ Timing: Advertise annually as program funds are available ■ Funding: General Fund ■ Responsible Agency: Building and Safety Department City Manager's Office HOUSING 11-137 EN TATE OF CALIFORNIA - BUSINESS. CONSUMFR SFRVI(:FS AND HOUSINQ AQFN(Y FDMUND G BROWN .IR.. GnvPmnr DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 1 FAX (916) 263-7453 www.hod.ca.gov ATTACHMENT # 2 September 16, 2013 Mr. Les Johnson Planning Director City of La Quinta P.O. Box 1504 La Quinta, CA 92247-1504 Dear Mr. Johnson: RE: Review of the City of La Quinta's 5th Cycle (2013-2021) Draft Housing Element Thank you for submitting the City of La Quinta's draft housing element update received for review on July 19, 2013, along with additional revisions received on August 28, September 11 and September 13, 2013. Pursuant to Government Code (GC) Section 65585(b), the Department is reporting the results of its review. A telephone conversation on August 20, 2013 with you, David Sawyer and Wally Nesbit, of your staff, and Nicole Sauviat-Criste, the City's consultant, facilitated the review. The Department conducted a streamlined review of the draft housing element based on the City meeting all eligibility criteria detailed in the Department's Housing Element Update Guidance. The City utilized SCAG's pre -approved housing element data. The draft element meets the statutory requirements of State housing element law. The element will comply with State housing element law (Article 10.6 of the GC) when adopted and submitted to the Department, pursuant to GC Section 65585(g). The Department commends La Quinta on the rehabilitation and expansion of the Washington Street Apartments and for securing funding for the Coral Mountain Apartments which will provide 174 new units for lower -income families and workers. In addition, the City's successful implementation of programs H.1.2.a and H.1.5.b (4th cycle housing element) resulting in the adoption of an Affordable Housing Overlay will provide for higher density residential development to address the City's current and future housing needs for lower- and moderate -income households. Mr. Johnson Page 2 To remain on an eight year planning cycle, pursuant to Senate Bill 375 (Chapter 728, Statutes of 2008) the City must adopt its housing element within 120 calendar days from the statutory due date of October 15, 2013 for SCAG localities. if adopted after this date, the City will be required to revise the housing element every four years until adopting at least two consecutive revisions by the statutory deadline (GC Section 65588(e)(4)). For information on housing element adoption requirements, please visit our website at: http://www.hcd.ca.gov/hpd/hrc/plan/he/he review adoption steps 110812.pdf. Public Participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower -income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. The Department is pleased to inform the City that prior 4th cycle housing element compliance meets one of the threshold requirements of the Housing Related Parks (HRP) Program which rewards local governments for approving housing affordable to lower -income households. The HRP Program, funded by Proposition 1C, provides grant funds to eligible local governments for every qualifying unit permitted since 2010. Grant awards can be used to fund park -related capital asset projects. Please note, units permitted in the Washington Street and Coral Mountain projects may be eligible to receive financial rewards under the program of up to $2725 per bedroom. Information about the HRP is available on the Department's website at http://www.hcd.ca.gov/hpd/hrppl. The Department looks forward to receiving La Quinta's adopted housing element. If you have any questions or need additional technical assistance, please contact James Johnson, of our staff, at (916) 263-7426. Si ifer Seeger) ping Policy Manager cc: Nicole Sauviat-Criste, Terra Nova OF �ti HOUSING COMMISSION MEETING DATE: NOVEMBER 06, 2013 REPORTS AND INFORMATIONAL ITEM NO. 1 TITLE: STATUS UPDATE ON CITY HOUSING PROGRAMS RECOMMENDED ACTION: Informational item, no action is necessary. BACKGROUND/ANALYSIS: The following is a status update of the La Quinta Housing Authority's (Authority) projects, programs, or services currently underway or related to the City's efforts to promote affordable housing. AFFORDABLE HOUSING PROJECTS The Authority is currently overseeing the construction of two affordable housing projects: Washington Street Apartments Rehabilitation project and Coral Mountain Apartments. Washington Street Apartments: Washington Street Apartments ("WSA") consists of 72 existing affordable/senior- housing units and 6.8 acres of additional vacant land proposed for future expansion. Existing units are restricted to very -low income seniors and disabled adults; rent subsidy assistance is provided by the United States Department of Agriculture Rural Development. The Authority intends to proceed with several improvements to the WSA project: • Rehabilitate the existing 72 units • Add an additional 26 senior/affordable units to the original site • Construct new common buildings and amenities • Construct 42 new senior/affordable housing units in the undeveloped 6.8 acres Upon completion, the project will consist of 72 rehabilitated units, 68 new units, and multiple common buildings and areas providing a variety of amenities. To date, all entitlements on the existing 72 units and the construction of the 68 new units have been reviewed by the Authority and approved by the Planning Commission. The original project funding source for the improvements included $3,006,360 from a 2004 tax-exempt housing bond and $15,523,220 from a 2011 taxable housing bond. However, funding has been placed on hold due to the pending State Department of Finance approval to use the 2011 taxable housing bond proceeds. In the event that the Department of Finance does not approve the Authority's use of the 2011 taxable housing bonds, alternative sources of financing will be sought. In the meantime, the remainder of the 2004 proceeds will be utilized to fund certain improvements, such as utility undergrounding along Washington Street in an effort to move the project forward. Coral Mountain Apartments: Coral Mountain Apartments is an affordable housing complex located east of Dune Palms and south of Highway 111 (adjacent to Costco). The project consists of One Hundred and Seventy Six (176) units; clubhouse and pool area; photovoltaic solar energy system; a playground featuring a multi -level play structure, soft surface pad, and water fountain spray pad; a basketball court; multiple BBQ areas; and winding pathways throughout the site. The clubhouse and model units are scheduled to be completed and open to the public in January 2014. The project is scheduled to be completed and ready for occupancy by the beginning of March 2014. CURRENT HOUSING AUTHORITY INVENTORY The Authority currently holds approximately 419 silent second trust deeds, which are part of the previous La Quinta Redevelopment Agency (LQRDA) "Silent Second" program. The prior LQRDA program, provided loans to very low, low, and moderate income households to allow for home ownership. The silent second trust deed funded the gap between an affordable home loan and the market price of the home. The current silent seconds held by the Authority place a 45-year affordability covenant on the home, requiring the home to be re -sold to an income qualified buyer. The "Silent Second" program is currently not available to first-time homebuyers, due to lack of funding. RECENT HOUSING AUTHORITY ACTIONS Housing Compliance and Monitoring Services On June 18, 2013, City Council approved a Professional Services Agreement with Becky Caha for housing compliance and monitoring services related to the Authority's 419 silent second trust deeds. • Contract Amount: $55,275.00 • Term: 07/01 /2013 thru 06/30/2014 Report prepared by: Carla Triplett, Housing Coordinator Report approved for submission by: Les Johnson, Community Development Director