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Citrus Heights Messenger

State Funding Will Help Increase Affordable Housing in Citrus Heights

Mar 17, 2020 12:00AM ● By Story by Shaunna Boyd

CITRUS HEIGHTS, CA (MPG) - The California Department of Housing and Community Development (HCD) is implementing the Local Early Action Planning (LEAP) Grant Program to help increase affordable housing statewide. LEAP, which is funded by a state tax on real estate transactions, will help local governments increase available housing and prepare to meet the latest Regional Housing Needs Allocation (RHNA) numbers. HCD is allocating $119 million in LEAP funding to counties and cities that implement plans to increase housing supply, streamline housing production, and facilitate more affordable housing.                                                   

LEAP funds are non-competitive and distributed based on local population. Citrus Heights just has to meet the state’s standards for eligibility and submit the application to receive $300,000. At the March 12 meeting of the Citrus Heights City Council, staff presented an overview of the City’s plans for LEAP funding and asked for Council approval to submit the application.

 

LEAP funds can be used to help update the City’s Housing Element, which provides an analysis of the community’s housing needs across all income levels and strategies to meet those needs. The Housing Element is a significant part of the General Plan and must be updated every eight years.

 

The City plans to use LEAP funding to promote the development of Accessory Dwelling Units (ADUs), which are housing units built in addition to the primary dwelling on a parcel. The state views ADUs, also known as in-law units, as another way to creatively address the housing crisis. Assembly Bill 68 was passed to provide flexibility in the development of ADUs and to restrict local governments from adopting ordinances hindering their creation. The City plans to streamline the process by offering pre-approved designs for ADUs.

The City can also use LEAP funds to help meet another state mandate: Senate Bill 743, which changes the way transportation impacts are analyzed under the California Environmental Quality Act (CEQA). Under SB 743, Citrus Heights needs to streamline their traffic analysis program to take the burden off housing developers.

When the City Council approved the Sunrise Mall Specific Plan, the estimate included the cost of the Environmental Impact Report (EIR), which was a need that did not have an identified funding source at that time. LEAP funding can be used to fill that un-met need so the EIR cost doesn’t have to come out of the City’s general fund.

The City also plans to use LEAP funds to improve the entitlement and CEQA process so that housing developments can be approved more quickly. The funds can also help the City with General Plan updates regarding housing densities in commercial zones.

These efforts, funded by LEAP, will increase the availability of affordable housing throughout the city, which should help Citrus Heights meet their new RHNA number of 697 units. California determines the current housing need throughout the state, and then that number is divided by region. The Sacramento Area Council of Government (SACOG) is responsible for dividing the regional number amongst the members: six counties and 28 cities. To meet their RHNA number of 697, the City of Citrus Heights doesn’t have to build 697 housing units — but they are required to identity land that could accommodate those units and ensure that the City’s housing code allows for those units to be built.

Meeting the RHNA numbers is a challenge. There is not a lot of vacant land in the city that is zoned for higher-density housing. And the increase in rent and property sale values over the years means that the market rate is no longer affordable for very-low income housing.

But the City does have some significant opportunities to fill the RHNA numbers. The Sunrise Mall Specific Plan offers a lot of opportunities for new housing, including high-density housing. There are also various entitled housing projects (Mitchell Farms, Sunrise Pointe, Northridge Grove, and Bearpaw Townhomes) that could count toward this year’s RHNA numbers depending on when they break ground.

Mayor Jeff Slowey said, “The simple fact of the matter is, from a low- to very-low income standpoint, no builder today is building those without additional state incentives — and there are none. … Even if you zone for it, you can’t make a developer go out and build a particular type of property where he’s not going to make money on it. It’s just not going to happen. So, it’s a broken process, in my personal opinion. But the good news is you just have to show it through zoning. The sad part is I don’t think the state’s going to come anywhere near the numbers they want because the developers aren’t going to build something that costs them money. It’s just that simple; land’s too expensive to meet the allocation the state is saying.”

The City Council voted unanimously to approve the application for LEAP funding. The application is due by July 2020; the City will have until the end 2023 to spend the funds.