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HomeMy WebLinkAboutTHE KENNEDY COMMISSION - ITEM 5 ,L-u Ke n n e d Y • M M I S S 1 • March 16, 2021 www.kennedycommission.org 17701 Cowan Ave.,Suite 200 Irvine,CA 92614 Mayor Letitia Clark and City Council Members 9492500909 City of Tustin 300 Centennial Way Tustin, CA 92780 RE: 2020 General Plan Annual Report and Annual Mitigation Monitoring Status Report for FEIS/EIR for Tustin Legacy (formerly MCAS-Tustin) Specific Plan Dear Mayor Letitia Clark and City Council Members: The Kennedy Commission (the Commission) is a broad based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $27,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land-use policies that has led to the new construction of homes affordable to lower income working families. As the City Council reviews the City's 2020 Annual Housing Element Progress Report for the 2014-2021 planning period, the Commission urges the City to take into account the severe imbalance between housing production at the lower income levels and above moderate income levels. The City must evaluate its current policies and programs to ensure they facilitate the development of homes affordable to lower income households in the City which they have failed to do thus far. For the 2014-2021 Housing Element planning period, the City has a Regional Housing Needs Assessment(RHNA) 283 very low- and 195 low-income households. To-date,the City has built 94, or 33%, of the 283 very low-income units and 74, or 38%, of the 195 low-income units.' However, for the above moderate-income units, the City outperformed and exceeded the RHNA by constructing 1,240, or 236%, of the 525 above moderate-income RHNA? While 56 above moderate units were added in 2020, no units were added at the very low and low income levels. With a remaining RHNA need of 310 lower income homes,it is important the City prioritize policies and programs that will produce homes at the lower income levels,for example,by creating a mixed-income housing ordinance. The City has an urgent need to address housing production at the lower income levels given that the City received higher RHNA allocations for the upcoming 2021-2029 Housing Element planning period. SCAG anticipates the City's total RHNA allocation for the very low and low income level for the upcoming cycle to be 1,724 and 1,046,respectively.3 That is a total of 2,770 lower income homes. In light of the City's inability to meet its lower income housing needs for the current planning period, the City must focus on developing policies and programs that will effectively produce affordable homes in the 2021-2029 Housing Element Planning Period. We also understand the importance of Housing Elements in addressing racial equity in housing, 1 City of Tustin's 2020 Annual Housing Element Progress Report,March,16,2021. 2 City of Tustin's 2020 Annual Housing Element Progress Report,March,16,2021. '"SCAG 6th Cycle Final RHNA Allocation Plan,"March 4,2021.https:Hscag.ca.gov/sites/main/files/file-attachments/6th-cycle-rhna-proposed- final-allocation-plan.pdD1614911196 orking for systemicg' resulting in the productionof homesI o OrangeCounty's households Mayor Letitia Clark and City Council Members March 16, 2021 particularly with the new statutory requirements mandating the inclusion of programs that affirmatively further fair housing in the new Housing Element planning period.4 Affordable homes are urgently needed for lower income residents given the increasing cost of housing in Orange County. The County is consistently ranked among the top ten least affordable metropolitan areas in the country.5 A resident must earn at least$42.62 per hour to afford a two- bedroom apartment at a fair market rent.6 Based on this figure, the approximate annual income a resident must have to afford housing in Orange County is $81,830.40. This income is completely unrealistic for lower income families. According to the California Housing and Community Development Department(HCD), the County's annual median income (AMI) for a family of four at the extremely low income level is $38,450 and $64,050 at the very low income level.? The City needs to prioritize the production of housing for lower income families for whom market-rate, or above moderate income, rental prices are not affordable. The Commission would like to work with the City to make this a reality. The Commission looks forward to partnering with the City to increase affordable home opportunities for lower income households in the City. Please keep us informed of any updates and meetings regarding strategies to increase affordable homes for lower income households in the City. If you have any questions,please free to contact me at(949) 250-0909 or cesarc@kennedycommission.org. Sincerely, Cesar Covarrubias Executive Director 4 California Government Code§8899.50(Assembly Bill 686). 5 Out of Reach 2020-The High Cost of Housing,National Low Income Housing Coalition,p.17,2021. 6 Out of Reach 2020-The High Cost of Housing,National Low Income Housing Coalition,p.17,2021. 'California Department of Housing and Community Development"State Income Limits for 2020,"p.8,April 30,2020. Page 2 of 2