HOUSING COMPONENT The County will: GENERAL 3.1 Sufficient Housing Opportunities Through both public and private efforts, protect, encourage and, where feasible, provide housing opportunities for persons of low and moderate income who reside, work or can be expected to work in the Coastal Zone. 3.2 Non-Discrimination Strive to ensure that decent housing is available for low and moderate income persons regardless of age, race, sex, marital status or other arbitrary factors. 3.3 Balanced Developments Strive to provide such housing in balanced residential environments that combine access to employment, community facilities and adequate services. 3.4 Diverse Housing Opportunities Strive to improve the range of housing choices, by location, type, price and tenure, available to persons of low and moderate income. DEFINITIONS 3.5 Definition of Low and Moderate Income Person Define "low and moderate income person" as a member of a low and moderate income household. 3.6 Definition of Low and Moderate Income Household Define "low and moderate income household" as a household with an income, adjusted for household size, which is less than 120% of the median income for all households in the San Francisco-Oakland Standard Metropolitan Statistical Area (SMSA). Break this definition into subcategories and define: (1) "Very low income" as less than 50% of the median; (2) "Low income" as 51% to 80% of the median; and (3) "Moderate income" as 81% to 120% of the median. 3.7 Definition of Affordable Housing Define "affordable housing" as housing with a contract rent or price affordable by low and moderate income households, based on currently accepted standards (rent paid by tenant less than 25% of income or purchase price no more than 2.5 times annual income. Higher purchase prices may be possible if affordability can be demonstrated). 3.8 Definition of Assisted Housing Unit Define "assisted housing unit" as a housing unit which is under a Section 8 Housing Assistance Payments Contract or which is subject to a similar public subsidy. DISTRIBUTION OF AFFORDABLE HOUSING 3.9 Regional Fair Share Define the regional fair share assisted housing allocation for the San Mateo County Coastal Zone as that which provides housing opportunities for low and moderate income households who reside, work or can be expected to work in the Coastal Zone. 3.10 Allocation of Affordable Units a. In order to reduce home-to-work travel distance within the Coastal Zone, and to encourage shared responsibility for housing by subarea roughly proportional to employment opportunities available in the subarea, allocate the "fair share" as follows: (1) In the Mid-Coast, allocate 50% to unincorporated urban communities and 50% to Half Moon Bay. (2) In the South Coast, allocate 100% to the extent water and sewer capacities are available. b. Through the County Planning Division and the Housing and Community Development Division (HCD), cooperate with the City of Half Moon Bay toward achieving its fair share housing allocation. PROTECTION OF EXISTING HOUSING OPPORTUNITIES FOR LOW AND MODERATE INCOME HOUSEHOLDS 3.11 Rehabilitation Loans a. To the extent of available resources, provide rehabilitation loans to low and moderate income owners of deteriorating housing through the County Housing and Community Development Program. Continue the designation of Pescadero as the first priority rehabilitation area on the Coastside. b. Through the County HCD Program, provide monetary relocation assistance and, if necessary, relocation housing when housing programs require temporary or permanent displacement of households. Where feasible, relocate households within the community. 3.12 Rental Assistance Through the County Housing Authority, provide rental assistance to needy tenant families by utilizing available rental assistance funds. 3.13 Demolition of Existing Structures Prohibit the demolition of structures providing affordable housing, unless: (1) the structure poses a serious health and safety hazard, cannot feasibly be rehabilitated, and the County requires demolition; (2) the structure was built in violation of the zoning and building codes, cannot be brought into conformance with the building code through rehabilitation and the zoning ordinance through Policies 3.24 and 3.27, and the County requires demolition; (3) the landowner undertakes the demolition to build a house for his/her own habitation and executes a recordable agreement with the County that this is his/her intent; (4) the person undertaking the demolition provides replacement affordable housing which is similar in size and location to the demolished structure. 3.14 Condominium Conversion Prohibit the conversion of rental housing units to condominiums, stock cooperatives and/or community apartments. 3.15 Protection of the El Granada Mobilehome Park Designate the existing El Granada Mobilehome Park as an affordable housing site. Prohibit the demolition or displacement of this mobilehome park. ENCOURAGEMENT AND PROVISION OF NEW HOUSING OPPORTUNITIES FOR LOW AND MODERATE INCOME HOUSEHOLDS 3.16 Reservation of Water and Sewer Capacity Designate affordable housing as a priority land use for which water and sewer capacity will be reserved in accordance with the policies of the Public Works Component. Where a portion of a site (i.e. North Moss Beach site) is required to provide affordable housing, consider the entire development proposed on the site as a priority land use for which water and sewer capacity will be reserved. 3.17 Maintenance of Community Character Require that new development providing significant housing opportunities for low and moderate income persons contribute to maintaining a sense of community character by being of compatible scale, size and design. Limit the height to two stories to mitigate the impact of this development on the surrounding neighborhoods. Assess negative traffic impacts and mitigate as much as possible. 3.18 Location of Affordable Housing a. Mid-Coast: Locate all affordable housing within the urban boundary defined in the Locating and Planning New Development Component. b. South Coast: Locate affordable housing in the following locations: (1) to the maximum extent feasible, in rural service centers as defined in the Locating and Planning New Development Component. (2) in rural residential land divisions, as specified in Policies 3.26 and 3.27. (3) farm labor housing on private farms or ranches. 3.19 Designated Affordable Housing Sites a. Designate the following as potential sites where affordable housing would be feasibly provided when residential development occurs: (1) The 11-acre site in North Moss Beach. (2) The 12.5-acre site northeast of Etheldore Street in South Moss Beach. (3) The 6-acre North El Granada site. b. Designate these sites Medium High Density to incorporate a density bonus within the land use designation. c. Rezone the designated sites or other appropriate sites within the urban boundary to the Planned Unit Development (PUD) zone to allow flexible residential development standards, when appropriate in conjunction with development plan approval. d. Evaluate proposals to develop the designated or other appropriate sites according to the following criteria: (1) For the total 11acre North Moss Beach site, development must help meet LCP housing objectives by meeting the following criteria: (a) Twentyone percent (21%) of the total units constructed on the site are reserved for low income households. (b) In addition to the required low income units, fourteen (14%) of the total units constructed are reserved for moderate income households. (2) For the other designated sites, development must help meet LCP housing objectives by meeting the following criteria: (a) Thirty percent (30%) of the total units constructed on a site are reserved for low income households. (b) In addition to the required low income units, 20% of the total units constructed are reserved for moderate income households. (3) Development must comply with all of the regulations established for Structural and Community Features (Urban), as established in the Visual Resources Component. (4) Require the provision of amenities including, but not limited to, landscaping and recreation facilities. (5) Encourage the provision of community services, such as day care centers. 3.20 Phasing the Development of Designated Housing Sites a. Limit the number of affordable housing units given building permits for construction on the designated sites to 60 during any 12-month period in order to allow the affordable housing units constructed on the designated housing sites to be assimilated into the community a few at a time. b. Allow the County Board of Supervisors to increase the number of affordable housing units permitted if they make the finding that the above phasing requirement threatens the implementation of affordable housing on a designated site by prohibiting the developer(s) from building when circumstances are uniquely favorable for a limited period of time (i.e., low interest rate financing or public subsidies are available). c. Prohibit the designation of additional housing sites for affordable housing for five years in order to permit the housing techniques stated in Policies 3.21, 3.22, 3.23 and 3.25 an opportunity to demonstrate that they can successfully serve as alternatives to additional designated housing sites. 3.21 Evaluating the Use of Alternative Housing Techniques a. Begin immediately to record the number of affordable housing units (as defined in Policy 3.7) developed by any of the three more dispersed, lower density methods listed below and provide an annual report to the Planning Commission of the results. (1) Units on R-1 lots, developed through Policy 3.22. (2) Units on C-1 lots, including those developed through Policy 3.23. (3) Units on sites less than two acres. b. At the end of a fiveyear period, evaluate how well the dispersed housing techniques described in (a) are meeting the housing need in the following way: (1) If a minimum of 12 affordable housing units per year, or 60 total, are provided by these methods, assume they are meeting their fair share of the need and no additional designated housing sites for affordable housing are required. (2) If less than 60 units of affordable housing have been provided by these methods over the fiveyear period, assume additional designated housing sites are required to meet the housing need and designate sites for this purpose. (3) If expanded sewer and water capacity have not been available, delay designating sites until one year after expanded sewer and water capacity are both available. If during that one year extension, less than 12 units of affordable housing are provided by these methods, assume additional designated housing sites are required to meet the housing need and designate sites for this purpose. 3.22 Mobilehomes in R-1 Zoning Districts Permit mobilehomes on permanent foundations in zoning districts where single family residences are permitted, except in scenic corridors. 3.23 Requirements for Including Affordable Housing in R-3 and C-1 Zoning Districts For any multiple family rental or ownership housing developments built on sites with a total area of 5,000 sq. ft. or more in R3 (not R3A) and C1 zoning districts: a. Require that 20% of the units constructed be reserved for low or moderate income households. b. Grant developers required to provide such housing a 33% density bonus over what the zoning ordinance would normally allow on the site. c. Calculate the number of units allowed, constructed and required to be affordable according to the following: (1) Determine number of units allowed by existing zoning; round to nearest whole number; multiply by 1.33; round to nearest whole number to obtain total units allowed. (2) Owner determines number of additional (bonus) units to be constructed less than or equal to that allowed. (3) Multiply total units to be constructed by .2; round to nearest whole number to obtain total low or moderate income units required. 3.24 Second Dwelling Units in R-1 Zoning Districts Permit second dwelling units on building sites containing a one-family residence in R1 zoning districts subject to the following restrictions: a. Limit the total number of approved second units to 466 in the Coastal Zone. b. Limit the size of the units to 700 sq. ft. or 35% of the floor area of the existing principal residence, whichever is greater. c. Comply with all applicable policies and procedures as required by the LCP. 3.25 Density Bonus for Lot Consolidation in the Mid-Coast Grant developers and/or property owners a 33% density bonus over what the R1/S17 zoning ordinance would normally allow when they do all of the following: (1) Consolidate contiguous lots to create lots which exceed the minimum lot area required by the zoning. (2) Provide a minimum lot area per dwelling unit of 3,500 sq. ft. (3) Meet the S17 zoning district regulations. (4) Design development to be visually compatible within a single-family neighborhood. (5) Reserve the additional units permitted by the density bonus for low and moderate income households and accept the income, rent and cost controls set forth in Policy 3.28 and the guarantees of continued affordability set forth in Policy 3.29. 3.26 Requirements from Land Divisions in Rural Areas of South Coast a. In any residential land division in rural areas of the South Coast, require that the applicant give the County an option to buy a minimum of 20% of the lots for affordable housing. If the option is exercised by the County's Housing and Community Development Division, assign it to a qualified non-profit organization (if available), who would seek funds from FmHA rural housing development programs or other sources to build low and moderate income housing. b. To the maximum extent possible, assist qualified non-profit organizations in securing funds to build rural affordable housing. 3.27 Density Bonus for Affordable Housing in Rural Areas of the South Coast a. In addition to the number of density credits permitted by zoning regulations, allow 40 dwelling units of affordable housing to be built and land divided for this purpose in rural areas of the South Coast under the following circumstances: (1) Units may be built individually, but no more than 15 units may be built in one cluster. No more than four units may be built by one developer, with the exception of non-profit organizations. (2) Onsite well water and sewage disposal requirements for each dwelling unit are met. (3) The units meet all of the requirements of other LCP policies. b. Allow two additional increments of 40 units of affordable housing under the following circumstances: (1) Permits for the original 40 (or 80) units of affordable housing have been granted. (2) A water system adequate to serve buildout of the Pescadero Land Use Plan is not yet available, or if water is available, the County's Housing and Community Development Division determines there are no sites available within the town for the construction of affordable housing. (3) The additional units will not result in any greater conversion of prime agricultural land than would be permitted without the bonus. c. Assist the financing of these units by: (1) Helping qualified non-profit organizations to secure funds to build rural affordable housing. (2) Giving priority to purchasers of these units for below market rate mortgage loans and/or other housing assistance funds available from the County. 3.28 Income, Rent and Cost Controls for Affordable Housing Units Through appropriate controls, require the developer of affordable housing units constructed under the provisions of Policies 3.19, 3.23, 3.25 and 3.27 to accept the following income, rent and cost controls from the County: a. Income: The person to whom the unit is sold or rented must be qualified as a low to moderate income person by either the County's Housing and Community Development Division or the Housing Authority. b. Rental Housing: Enter into a Section 8 housing assistance payment contract with the County Housing Authority if a housing unit is available or rent the units at a monthly contract rent less than or equal to 110% of the fair market rents established by the Department of Housing and Urban Development for the Section 8 existing housing rental assistance program. c. Ownership Housing: Set the sales price equal to or less than 2.5 times the SMSA median family income for moderate income households as adjusted for a family size which corresponds to the unit size. Higher purchase prices may be possible if affordability can be demonstrated. 3.29 Guarantees of Continued Availability of Affordable Housing Through appropriate controls, require the developer of affordable housing units constructed under the provisions of Policies 3.19, 3.23, 3.25 and 3.27 to accept the following conditions to guarantee the continued availability of affordable housing units. a. Ownership Housing (1) Require resale controls, such as deed restrictions or limited equity cooperatives, to ensure life-time availability of the unit to low and moderate income households. (2) Require that such resale controls limit the appreciation of equity (based on Consumer Price Index) and provide that the unit will only be resold to an eligible low or moderate income household. b. Rental Housing For rental units, require the developer and/or owner to agree and bind any successors to maintain units at rent levels established in Policy 3.28 for the life of the unit. 3.30 Priority Processing Process any proposed development providing affordable housing ahead of other residential development proposals. ALLOCATION OF PUBLIC RESOURCES 3.31 Funding Sources Make maximum utilization of housing assistance funds available primarily for rural areas such as the Coastal Zone, including Farmers Home Administration (FmHA) programs, and special programs of the California Housing Finance Agency (CHFA) and the Department of Housing and Urban Development, in order to minimize the competition between the Bayside and Coastside areas of San Mateo County for limited housing assistance resources. 3.32 Farm Labor Households For farm labor housing, use resources to: a. Expand housing choices b. Promote a stable, non-itinerant labor force by emphasizing provision of family housing. 3.33 Implementation Techniques Through the County HCD Program, reduce development and financing costs for profit or non-profit developers of affordable housing as needed by one or more of the following methods: (1) land cost write downs (discounts), (2) below market interest rate loans for construction financing, long term financing or home mortgages, and (3) Farmers home Administration or CHFA Section 8 rent subsidies. 3.34 Responsibility for Implementation a. Designate the County Housing and Community Development Division as the primary implementation agency for: (1) facilitating affordable housing, (2) facilitating housing rehabilitation, (3) providing for relocation assistance, and if necessary relocation housing, (4) designing and implementing programs to achieve housing objectives, (5) locating and promoting funding for Coastal Zone housing programs, and (6) directing limited public resources toward the high-need groups. b. Designate the County Planning Department as the primary implementing agency for: (1) priority processing, (2) reviewing permit applications for consistency with LCP housing policies, (3) zoning ordinance revisions, (4) revising and refining housing objectives for the Coastal Zone housing programs, and (6) directing limited public resources toward the high-need groups. c. In unsewered areas without public water supplies, Environmental Health shall be provided evidence of the feasibility of water supply and sewage disposal prior to routine processing of the application. 3.35 Definition of Farm Labor Housing Define Farm Labor Housing constructed according to Policy 3.33, as residential units solely for farm workers which shall be occupied by persons or families, at least one of whom derives substantial income from agricultural and/or floricultural work and work incident thereto. At least 25% of the units shall be continuously affordable for households of low income, and 50% of the units shall be continuously affordable to households of moderate income, as such terms are defined in Policy 3.6. The remaining 25% of the units shall be available exclusively to farm workers irrespective of their income. RXG:kcd - RXGC1986.AKM (8/14/92)