HomeMy WebLinkAbout31 - PH-1 - Attachment 3 - 1/21/2012PROPOSED
HOUSING ELEMENT
For the Costa Mesa General Plan
AM
Prepared By.
City of Costa Mesa
Development Services Dept.
77 Fair Drive
Costa Mesa, CA 92626
(714) 754-5245
(714) 754-4856 fax
2013-2021
November, 2013
Costa Mesa General Plan
TABLE OF CONTENTS
5.1 PURPOSE.................................................................................................1
ORGANIZATION....................................................................................... 2
5.2 RELATIONSHIP TO OTHER GENERAL PLAN ELEMENTS .................2
5.3 CITIZEN PARTICIPATION.......................................................................2
PUBLIC MEETING....................................................................................2
PUBLIC REVIEW OF DOCUMENTS.......................................................3
5.4 REVIEW OF PREVIOUS HOUSING ELEMENT......................................3
SUMMARY OF PROGRESS..................................................................10
5.5 HOUSING NEEDS ASSESSMENT........................................................11
POPULATION AND EMPLOYMENT......................................................11
HOUSING PROFILE...............................................................................26
5.6 HOUSING CONSTRAINTS ANALYSIS.................................................36
GOVERNMENTAL CONSTRAINTS.......................................................36
MARKET CONSTRAINTS...................................................................... 53
5.7 OPPORTUNITIES FOR NEW RESIDENTIAL DEVELOPMENT ........... 55
REGIONAL HOUSING NEEDS..............................................................55
FINANCIAL AND ADMINISTRATIVE RESOURCES .............................60
ENERGY CONSERVATION, GREEN BUILDINGS, AND SUSTAINABLE
RESOURCES.........................................................................................61
5.8 GOALS, POLICIES, AND PROGRAMS................................................63
FRAMEWORK FOR IMPLEMENTATION..............................................63
GOALS AND POLICIES.........................................................................64
IMPLEMENTING PROGRAMS...............................................................67
QUANTIFIED OBJECTIVES SUMMARY...............................................73
List of Tables
Table HOU-1:
Housing Program Review......................................................................................................4
Table HOU-2:
Progress toward RHNA (2006-2014)...................................................................................10
Table HOU-3:
Progress toward Quantified Objectives (2008-2014)..........................................................11
Table HOU-4:
Regional Population Trends................................................................................................12
Table HOU-5:
Population Trends — Costa Mesa and Surrounding Cities (1980-2010) ..............................13
Table HOU-6:
Population by Age Groups (2000 - 2010)............................................................................14
Table HOU-7:
Race and Ethnicity (2000 - 2010)........................................................................................14
Table HOU-8:
Costa Mesa Employment by Industry (2000-2010).............................................................15
TableHOU-9:
Major Employers..................................................................................................................
16
Table HOU-10:
Household Trends (1960 - 2010).......................................................................................
17
Table HOU-11:
Household Size Trends (Costa Mesa and Orange County — 2000-2010) .........................
18
Table HOU-12:
Households by Tenure Trends (2000-2010)......................................................................18
Table HOU-13:
Households by Income Level (2000-2010)........................................................................19
Table HOU-14:
Income Distribution and Cost Burden for Elderly Households (2005-2009) ......................21
Table HOU-15:
Disabled Persons by Age (2009-2011)..............................................................................
21
Table HOU-16:
Developmentally Disabled Residents by Status................................................................22
Table HOU-17:
Household type (2000-2010).............................................................................................
23
HOUSING ELEMENT • PAGE HOU-I
Costa Mesa General Plan
Table HOU-18:
Overcrowding (2000-2010)................................................................................................24
Table HOU-19:
Households by Tenure and Unit Size (2010).....................................................................24
Table HOU-20:
Households by Tenure and Household Size (2010)..........................................................25
Table HOU-21:
Income Distribution and Cost Burden for Large Households (2005-2009) .......................25
Table HOU-22:
Housing Units by Type (1990-2010)..................................................................................27
Table HOU-24:
Affordability by Income Group (2012)................................................................................29
Table HOU-25:
Apartment Rents (2012)....................................................................................................
31
Table HOU-26:
Inventory of Public Assisted Complexes (2012)................................................................32
Table HOU-27:
Market Value of At -Risk Projects.......................................................................................
34
Table HOU-28:
Rent Subsidies Required to Preserve At -Risk Rental Units..............................................34
Table HOU-29:
Development Standards by Residential Zone...................................................................
38
Table HOU-30:
Development Standards by Planned Development District...............................................38
Table HOU-31:
Parking Standards by Residential Zone............................................................................
39
Table HOU-32:
Permitted Residential Uses by Residential Zone..............................................................42
Table HOU-33:
Development Review and Approval Procedures...............................................................48
Table HOU-34:
Planning Application Fees — Surrounding Jurisdictions....................................................50
Table HOU-35:
Traffic Impact Fee Schedule..............................................................................................51
Table HOU-36:
Development Fees Schedule.............................................................................................51
Table HOU-38:
Underutilized Sites in 19 West Urban Plan Area...............................................................57
Table HOU-38:
Affordable Housing with Densities of 25 Units/Acre or Less .............................................
58
Table HOU-39:
Quantified Objectives Summary (2013-2021)...................................................................
73
PAGE HOU-II • HOUSING ELEMENT
Costa Mesa Gene�P
CHAPTER 5
HOUSING ELEMENT
5.1 PURPOSE
Accommodating the housing needs of the State of California is an important goal
for the City of Costa Mesa, regional agencies and State agencies. As the
population of the State continues to grow and pressure on resources increase,
Costa Mesa is concerned with providing adequate housing opportunities while
maintaining a high standard of living for all citizens in the community.
Recognizing the importance of providing adequate housing, the State has
mandated a Housing Element within every General Plan since 1969. The City of
Costa Mesa adopted its first Housing Element in April 1971 and has continued to
work towards the needs of the State, region and community. Changes in market
conditions and state legislation resulted in amendments to the City's Housing
Element in 1974, 1978, 1980, 1988, 1992, 2000, and 2008. This Housing
Element (2013-2021) complies with State General Plan law pertaining to Housing
Elements.
The State of California has declared that "the availability of housing is of vital
statewide importance and the early attainment of decent housing and a suitable
living environment for every California family is a priority of the highest order." In
addition, government and the private sector should make an effort to provide a
diversity of housing opportunities and accommodate regional housing needs
through a cooperative effort, while maintaining a responsibility toward economic,
environmental and fiscal factors and community goals within the general plan.
Further, State Housing Element law requires "An assessment of housing needs
and an inventory of resources and constraints relevant to the meeting of these
needs." The law requires:
♦ An analysis of population and employment trends.
♦ An analysis of the City's fair share of the regional housing needs.
♦ An analysis of household characteristics.
♦ An inventory of suitable land for residential development.
♦ An analysis of governmental and non-governmental constraints on the
improvement, maintenance and development of housing.
♦ An analysis of special housing needs.
♦ An analysis of opportunities for energy conservation.
♦ An analysis of publicly -assisted housing developments that may convert
to non -assisted housing developments.
The purpose of these requirements is to develop an understanding of the existing
and projected housing needs within the community and to set forth policies and
programs that promote preservation, improvement and development of diverse
types and costs of housing throughout Costa Mesa.
HOUSING ELEMENT • PAGE HOU-1
Costa Mesa Gene�P
ORGANIZATION
Costa Mesa's Housing Element is organized into three primary sections:
Summary of Existing Conditions: This section includes a housing needs
assessment, an inventory of resources and a section discussing
constraints, efforts and opportunities.
♦ Housing Issues/Trends: This section includes a discussion of State
issues and policies, regional housing policies, and Costa Mesa's housing
issues and strategies.
Housing Program: This section identifies housing goals, policies and
objectives. Funding sources are identified and schedules for
implementation are set forth. In addition, quantified objectives are
provided.
5.2 RELATIONSHIP TO OTHER GENERAL PLAN ELEMENTS
State Law requires that "...the general plan and elements and parts thereof
comprise an integrated, internally consistent, and compatible statement of
policies..." The purpose of requiring internal consistency is to avoid policy
conflict and provide a clear policy guide for the future maintenance, improvement
and development of housing within the City.
The Costa Mesa General Plan is comprised of the following elements: Land Use;
Circulation; Growth Management; Housing; Conservation; Noise; Safety;
Community Design; Open Space and Recreation; and Historic and Cultural
Resources. The City is currently updating several of these elements, including
the Land Use Element and Circulation Element. As part of that update, the City
has reviewed its land use policies to ensure consistency with this Housing
Element and has updated the Land Use Element to address flood hazards and
management.
As portions of the General Plan are amended in the future, the Housing Element
will be reviewed along with other elements to ensure internal consistency is
maintained.
5.3 CITIZEN PARTICIPATION
The City of Costa Mesa has made diligent efforts to solicit public participation
pertaining to the formulation of this Housing Element update. Public participation
for the 2013-2021 Housing Element included the following components:
PUBLIC MEETINGS
The 2013-2021 Housing Element was updated in conjunction with the General
Plan Update. The City designed a public participation program as part of the
update process (see Appendix A). Specific meetings were dedicated for
obtaining community input on the Housing Element:
HOUSING ELEMENT • PAGE HOU-2
CITY OF COSTA MESA
♦ May 15, 2013 — Community Workshop
♦ May 28, 2013 — Planning Commission meeting
♦ June 13, 2013 — Community Workshop
♦ June 19, 2013 — Community Workshop
♦ June 24, 2013 — Planning Commission meeting
♦ September 17, 2013 — City Council meeting
The Planning Commission and City Council meetings were advertised in the
Daily Pilot and the City's website. Special notifications were also sent to those
on the City's list of interested parties, including nonprofit service providers,
community stakeholders, and developers.
PUBLIC REVIEW OF DOCUMENTS
Throughout the process of updating the Housing Element, the City posted
relevant documents, including presentation materials and draft documents on the
website for easy download and review by residents and interested parties.
A public review draft was prepared and made available to the community as of
May 28, 2013. The public review draft was sent to the State Department of
Housing and Community Development (HCD). A notice announcing the
availability of the Draft Housing Element for public review was sent to Orange
County Housing Authority (OCHA), non-profit organizations, and various service
providers.
Public comments received on Draft Housing Element are summarized in
Appendix A. As appropriate, the Housing Element has been revised to address
the comments.
5.4 REVIEW OF PREVIOUS HOUSING ELEMENT
State law requires the City of Costa Mesa to review its previous Housing Element
in order to evaluate:
1) The appropriateness of the housing goals, objectives and policies in
contributing to the attainment of the state housing goal.
2) The effectiveness of the Housing Element in attainment of the
community's housing goals and objectives.
3) The progress of the city, county, or city and county in implementation of
the Housing Element.
The previous Housing Element originally covered the period of July 1, 2008
through October 15, 2013 (as revised from June 30, 2014 by SB 375). A
summary of the City's achievements under the previous Housing Element is
presented in this section. Table HOU-1 presents a program -by -program review
of the previous Housing Element, containing a discussion on the effectiveness
and continued appropriateness of each program.
HOUSING ELEMENT • PAGE HOU-3
Costa Mesa Gene�P
Table HOU-1: Housing Program Review
ProgramHousing Objectives Achievements
Goal: Preservation and Enhancement
1. Single -Family
♦ Assist 10 households annually
Effectiveness: Between 2007 and 2011, 116
Rehabilitation Loan
for a total of 60 households
units received single-family loans and 438
Program
received rehabilitation grants.
Continued Appropriateness: The community
continues to have a significant need for
rehabilitation assistance. This program is
included in the 2013-2021 Housing Element.
2. Neighborhood
♦ Assist 30 households annually
Effectiveness: Between 2007 and 2011, 130
Improvement Grant
for a total of 180 households
units were assisted through the Neighborhood
Program
Improvement Grant Program. On average
approximately 27 households per year have
been assisted.
Continued Appropriateness: This program
was previously funded with HOME and
redevelopment set-aside funds. Between FY
2010 and FY 2012, the City's HOME allocation
decreased by more than 50 percent.
Dissolution of redevelopment in California also
eliminated a significant funding source for the
City. This program has been discontinued.
3. Neighborhood Clean
♦ Assist 10 households annually
Effectiveness: The City uses CDBG funds to
Up
for a total of 60 households
support the Neighbors for Neighbors program,
which organizes volunteers to help clean up
neighborhoods and perform minor repairs for
needy families. Between 2007 and 2011, 171
households had been assisted through the
Neighbors for Neighbors program.
Continued Appropriateness: Between FY
2010 and FY 2012, the City's CDBG allocation
decreased by about 40 percent. This program
is no longer included in the City's CDBG
program and therefore, not included in the
2013-2021 Housing Element.
4. Mobile Home Park
♦ Maintain and preserve the
Effectiveness: Between 2008 and 2011, the
Preservation
mobile home housing stock.
program provided 93 loans and grants to assist
♦ Provide mobile home
in the rehabilitation of mobile homes.
rehabilitation loans through the
Neighborhood Improvement
Continued Appropriateness: The City
Grant Program
continues to support a Owner -Occupied
Housing Rehabilitation program that provides
rehabilitation assistance to mobile home
owners. This program is included in the 2013-
2021 Housing Element.
Goal: Preserving and Expanding Affordable Housing Opportunities
5. Incentives for
♦ Promote the use of density
Effectiveness: Since 2008, 7 affordable
Affordable Housing
bonus incentives and deferral
density bonus units were created. The City
of fees for affordable housing
provides expedited reviews for projects within the
projects
Urban Plan areas and defers park and traffic
HOUSING ELEMENT • PAGE HOU-4
CITY OF COSTA MESA
Table HOU-1: Housing Program Review
ProgramHousing
Objectives
Achievements
♦ Provide information at City Hall
impact fees to prior to issuing a certificate of
on the density bonus
occupancy.
ordinance
♦ Meet with developers and
Due to the housing market condition, there has
establish a strategy by
been limited development interest in City until
December 2009 for promoting
late 2012. Many developers did not proceed
new construction of rental
with or withdrew their applications, or allowed
units affordable to lower
the approval to lapse. The City did not conduct
income families in the Urban
a specific meeting with developers to discuss
Plan Areas
affordable housing in the Urban Plan areas;
however, affordable hosuing opportunities are
discussed with interested developers as
meetings arise. As part of the Land Use
Element update that is currently underway, the
City is exploring opportunities for residential
development in other parts of the City.
Continued Appropriateness: The City
continues to foster the development of
affordable housing in the community. This
program is included in the 2013-2021 Housing
Element.
6. Second Units and
♦ Promote the use of accessory
Effectiveness: The City updated its second
Granny Flats
apartments and second units
unit ordinance in 2011 allowing the construction
by providing information on the
of accessory second units in the R-1 zone and
City's website and at public
has adopted conditions under which second
counters.
dwelling units may be permitted. These
conditions are consistent with State law. Since
2008, 3 second units have been built.
Continued Appropriateness: The City
continues to promote second units and granny
flats as alternative affordable housing options.
This program is included in the 2013-2021
Housing Element.
7. Federal and State
♦ Encourage private sector to
Effectiveness: A total of 618 affordable units
Housing Programs
utilize available State and
were constructed between 2008 and 2011.
Federal housing programs to
increase the supply of
Continued Appropriateness: The City
affordable housing.
continues to pursue funding and partner with
♦ Annually, the City will contact
affordable housing developers. This program is
nonprofit housing developers
included in the 2013-2021 Housing Element.
to explore potential affordable
housing projects and funding
possibilities.
8. Rental Housing
♦ Provide rental assistance to
Effectiveness: On-going Housing Choice
Assistance
463 households annually
Vouchers through the Orange County Housing
through the Section 8
Authority (OCHA). As of March 2013, 442 very
program.
low income households in Costa Mesa were
♦ Continue to promote the use of
receiving rental assistance.
Housing Choice vouchers by
providing program information
Continued Appropriateness: Housing Choice
on City website and at public
Vouchers continue to be an important resource
counters.
for very low income households in Costa Mesa.
♦ Encourage property owners to
This program is included in the 2013-2021
HOUSING ELEMENT • PAGE HOU-5
Costa Mesa Gene�P
Table HOU-1: Housing Program Review
ProgramHousing
Objectives
Achievements
accept Housing Choice
Housing Element.
Vouchers.
9. First -Time Homebuyer
♦ Assist a total of 8 households
Effectiveness: Between 2008 and 2011, the
Assistance
annually
City provided assistance to 5 first-time
homebuyers with household incomes that were
considered low or moderate to assist these
households achieve homeownership.
Continued Appropriateness: With the
significant reductions in HOME funds and
elimination of redevelopment funds, the City no
longer has a sustainable funding source to
support first-time homebuyer assistance. The
program is currently inactive due to lack of
funding and is not expected to restart in the
near future and is therefore not included in the
2013-2021 Housing Element.
10. First -Time Homebuyer
♦ Monitor properties available in
Effectiveness: Since 2008, there has been no
New Construction and
the community and pursue
land acquisition intended for first-time
Acquisition/Rehabilitati
funding alternatives to
homeownership.
on
implement program.
Continued Appropriateness: With the
dissolution of the Redevelopment Agency, the
City's ability to pursue land acquisition has
been seriously impacted. This program is not
included in the 2013-2021 Housing Element.
11. Preservation of At -Risk
♦ Preserve the existing
Effectiveness: Affordability for both at -risk
Housing
affordable housing stock in the
developments was maintained through the
City, including Casa Bella (75
Housing Element planning period. Casa Bella
units), and Bethel Towers (270
has a new Section 8 expiration date of 2015
units)
and in 2012 Bethel Towers, through tax-exempt
♦ Notify tenants of potential risk
revenue bonds, has extended its affordability
of conversion at least one year
covenant for 55 years.
prior to conversion.
Continued Appropriateness: The City will
continue to monitor the status of all affordable
housing projects. This program is included in
the 2013-2021 Housing Element.
12. Single -Room
♦ Maintain a list of existing
Effectiveness: The City adopted the SRO
Occupancy (SRO),
motels with potential for
policy in 1991 to encourage the development of
Family Residential
conversion into SRO, FRO, or
SRO units. Since adoption of the policy, three
Occupancy (FRO),
extended stay units in 2009
projects have been completed and occupied,
Extended Stay Units
and make list available to
providing a total of 247 units, including 91
interested affordable housing
senior. During the Housing Element period one
developers.
motel was converted into an 11 -unit SRO. In
♦ Promote the conversion of
2009, the City contacted affordable housing
motel rooms into 170 SRO or
developers and hotel owners to discuss
FRO units by adopting
potential conversions. As no financial
development incentives in
assistance was available (due to economic
2009.
crisis), no feedback or interest was expressed.
Staff maintains a list of existing motels with
potential for conversion into SRO, FRO, or
extended stay units and makes it available to
interested parties.
HOUSING ELEMENT • PAGE HOU-6
CITY OF COSTA MESA
Table HOU-1: Housing Program Review
ProgramHousing
Objectives
Achievements
Continued Appropriateness: SRO continues
to represent a viable alternative affordable
housing option in the community. This program
is included in the 2013-2021 Housing Element.
This program also includes a new component to
encourage the conversion of old motels to
family housing.
13. Supportive Services for
♦ Conduct needs assessment
Effectiveness: Between 2008 and 2011, the
Persons with Special
through the annual planning
City funded services through their CDBG
Needs
and performance review
program to assist 235 individuals with
processes of the CDBG
emergency shelter and homeless services,
program.
3,481 seniors with a variety of senior services,
♦ Through the CDBG Request
and 230 individuals were provided access to
for Proposal process, identify
services for the disabled, The City continues to
service gaps and prioritize
conduct needs assessment through the annual
funding allocations.
planning and performance review processes of
♦ Support emergency shelters
the CDBG program.
for 30 persons annually (180
persons total)
Continued Appropriateness: The City
♦ Support senior services for
recognizes the myriad of supportive service
600 seniors annually (3,600
needs of its special needs populations. This
seniors total)
program is included in the 2013-2021 Housing
♦ Provide employment training,
Element.
housing, and other services for
100 persons with disabilities
(600 persons total)
♦ Provide supportive services for
20 low income persons at risk
of homelessness annually
(120 persons total)
14. Reasonable
♦ Adopt Reasonable
Effectiveness: In 2009, the City's Reasonable
Accommodation
Accommodation Amendment
Accommodation ordinance was modified to
Ordinance
by December 2008.
streamline the request process and to eliminate
the requirement for a public hearing or public
notice.
Continued Appropriateness: The City will
continue to implement the Reasonable
Accommodation Ordinance. However, this
ongoing effort is not included in the 2013-2021
Housing Element as a housing program.
15. Fee Deferral for
♦ Establish a Fee Deferral
Effectiveness: The City has not received any
Reasonable
program for projects
recent applications for reasonable
Accommodation and
requesting Reasonable
accommodation; if such application is
Affordable Housing
Accommodation or for
submitted, the City Council has the authority to
affordable housing projects by
defer or waive the fees.
December 31, 2008.
Continued Appropriateness: The City will
continue to implement the Reasonable
Accommodation Ordinance. However, this
ongoing effort is not included in the 2013-2021
Housing Element as a housing program.
16. Build Green Program
♦ Implement the Build Green
Effectiveness: The Go Green Program
Program in FY 2008/09.
(previously known as the Build Green Program)
HOUSING ELEMENT • PAGE HOU-7
Costa Mesa Gene�P
Table HOU-1: Housing Program Review
ProgramHousing
Objectives
ended in June 2009 due to budget constraints.
However, the City continues to offer a 50
percent discount on permits for solar panels.
Continued Appropriateness: This program is
included in the 2013-2021 Housing Element.
Goal: Provision of Adequate Sites
17. Adequate Sites
♦ Update inventory of vacant
Effectiveness: The City has developed several
and underutilized sites
neighborhood improvement strategies and
annually and provide
urban plans that identify the residential and
information to interested
mixed use opportunities available within
developers.
neighborhoods. This information is made
♦ When rezoning occurs,
available to interested developers.
evaluate the impact of
rezoning on the City's
Continued Appropriateness: The City's
continued ability to meet its
Regional Housing Needs Allocation for the
RHNA.
2014-2021 RHNA planning period is two units
(one very low income and one low income
units). The City will be able to accommodate
this need with mixed use opportunities offered
in the Urban Plan areas. The City will continue
to provide information on available sites for
development. This program is included in the
2013-2021 Housing Element.
18. Fairview
♦ Process General Plan
Effectiveness: Due to the State's budgetary
Developmental Center
amendment and rezone by
issues and collapsed housing market, the
December 31, 2008.
Fairview Development Center did not pursue
♦ Work with the Fairview
the affordable housing project. The City
Developmental Center to
identified other available sites for residential
include 170 affordable units to
development to accommodate the RHNA.
lower income households.
Continued Appropriateness: This program is
no longer appropriate and is not included in the
2013-2021 Housing Element.
19. Land Acquisition
♦ Maintain a list of opportunity
Effectiveness: the City has developed several
sites and monitor for -sale
neighborhood improvement strategies and
status of available properties.
urban plans that identify the residential and
♦ Offer special assistance as
mixed use opportunities available within
presented.
neighborhoods. The City has not acquired any
land during the Planning Period.
Continued Appropriateness: Due to limited
funding, this program is not included in the
2013-2021 Housing Element.
20. Mixed -Use
♦ Update inventory of
Effectiveness: the City has developed several
Developments
opportunity sites at least every
neighborhood improvement strategies and
six months and make
urban plans that identify the residential and
inventory available to
mixed use opportunities available within
interested developers.
neighborhoods. This information is made
Evaluate incentives package
available to interested developers. The Urban
annually.
Plans are updated as needed for consistency,
revision of standards, etc.
HOUSING ELEMENT • PAGE HOU-8
CITY OF COSTA MESA
Table HOU-1: Housing Program Review
ProgramHousing
Objectives
Achievements
Continued Appropriateness: The City will
continue to facilitate mixed use developments
within the Urban Plan areas. This program is
included in the 2013-2021 Housing Element.
21. Emergency Shelters,
♦ Amend the Zoning Code by
Effectiveness: In 2013, City's Municipal Code
Transitional Housing,
December 31, 2009 Code to
was amended to provide for emergency
and Supportive
allow emergency shelters as a
homeless shelters as a permitted use in the MP
Housing
permitted use.
zone as required by Senate Bill 2 (SB 2).
Continued Appropriateness: This program is
completed and not included in the 2013-2021
Housing Element.
22. Removing
♦ Amend the Zoning Code by
Effectiveness: This program was not
Governmental
December 31, 2009 to
implemented. Due to the depressed housing
Constraints in
eliminate any discretionary
market and economy, there have been only
Processing and Permit
review of an affordable
limited residential development activities in the
Procedures
housing project to ensure that
City.
development is not
constrained.
Continued Appropriateness: The City will
continue to monitor its development process to
ensure it complies with the Streamlined
Processing Act. This program is not included in
the 2013-2021 Housing Element as a separate
housing program.
23. Annual General Plan
♦ As part of the City's annual
Effectiveness: The City submits Annual
Review
report to State Department of
Reports on the General Plan to the State
Housing and Community
Legislature which includes an update on the
Development (HCD) for the
City's implementation of the General Plan.
implementation of the General
Plan (including Housing
Continued Appropriateness: Pursuant to
Element), provide detailed
State requirement, the City will continue to
progress in residential,
submit Annual Reports on the implementation
commercial, and industrial
of the General Plan. This program is included
development.
in the 2013-2021 Housing Element.
Goal: Equal Housing Opportunity
24. Fair Housing
♦ Provide specialized housing
Effectiveness: The City continues to contract
Assistance
services to residents to ensure
with the Fair Housing Foundation to provide fair
equal access to available
housing and tenant/landlord dispute resolution
housing opportunities.
services.
Continued Appropriateness: The City
continues to promote equal housing opportunity
in the community. This program is included in
the 2013-2021 Housing Element.
25. Promotion of Child
♦ Continue to apply development
Effectiveness: The City continues to provide
Care Facilities
incentives pursuant to the State
development incentives associated with the
density bonus law and Costa
State density bonus provisions.
Mesa Zoning Code to
incorporate child care centers
Continued Appropriateness: The City
as part of an affordable housing
encourages the provision of family housing
development. The City will
coordinated with child care services. This
allow all incentives related to
program is included in the 2013-2021 Housing
HOUSING ELEMENT • PAGE HOU-9
Costa Mesa Gene�P
Table HOU-1: Housing Program Review
SUMMARY OF PROGRESS
PROGRESS TOWARD RHNA
Pursuant to State law, each jurisdiction in California is responsible for a share of
the region's housing growth needs. The process of determining that "fair share"
is called Regional Housing Needs Assessment (RHNA). For the 2008-2014
Housing Element cycle, the City of Costa Mesa was assigned a RHNA of 1,682
units, divided into four income categories:
• Very Low Income (0-50 percent Area Median Income): 353 units
• Low Income (51-80 percent Area Median Income): 289 units
• Moderate Income (80-120 percent Area Median Income): 330 units
• Above Moderate Income (>120 percent Area Median Income: 710 units
The RHNA for the 2008 2014 Housing Element cycle in the SCAG region used
January 1, 2006 as the baseline for projecting housing needs. As such, housing
units constructed, permitted, approved, or affordable housing units preserved
from January 1, 2006 to 2008 were credited toward the RHNA. Table HOU-2
summarizes the City's accomplishments in meeting the remaining RHNA.
Table HOU-2: Progress toward RHNA (2006-2014)
GroupIncome
.
Very Low Income
244
0
Low Income
201
1
Moderate Income
---
617
Above Moderate Income
---
430
TOTAL
445
1,048
PROGRESS TOWARD QUANTIFIED OBJECTIVES
The City recognized it had limited resources to address the varied affordable
housing needs in the community. As part of the 2008-2014 Housing Element,
the City established a set of quantified objectives for housing construction,
rehabilitation, and preservation. These objectives are presented in Table HOU-3,
along with the City's accomplishments. A Summary of Accomplishments is
provided in Table HOU-3 and details of accomplishments are described in Table
HOU-1.
HOUSING ELEMENT • PAGE HOU-10
CITY OF COSTA MESA
Table HOU-3: Progress toward Quantified Objectives (2008-2014)
Objective Very Low Low Moderate
Moderate Objective
Goal
319
219
1,424
2,051
4,013
Progress
16
14
617
563
1,210
Rehabilitation (SF Rehab. Loans, Neighborhood Improvement Grants, Neighborhood Cleanup)
Goal
215
85
---
---
300
Progress
128
108
5
0
238
Affordability (Rental Assistance)
Goal
463
---
8
---
471
Progress
485
---
0
---
490
Preservation of At -Risk Housing
Goal
345
---
---
---
345
Progress
345
---
---
---
345
5.5 HOUSING NEEDS ASSESSMENT
The purpose of this section is to summarize and analyze the existing housing
conditions in Costa Mesa. The section consists of two major sections: an
analysis of population and employment trends; and a housing profile which
includes an analysis of existing housing characteristics, housing conditions,
vacancy trends, housing costs and availability, coastal zone housing,
neighborhood and community resources, "at -risk housing" and suitable lands for
future development.
POPULATION AND EMPLOYMENT
When evaluating housing needs in a community, demographic variables, such as
population, employment, and households must be examined to assess the
present and future housing needs. This section utilizes various data sources,
including:
♦ 1970-2010 U.S. Census reports;
♦ 2006-2010 American Community Survey (ACS)';
♦ State Department of Finance Population and Housing Estimates;
♦ State Employment Development Department Labor Market Statistics;
and
♦ Southern California Association of Governments (SCAG) Population,
Household, and Employment projects.
Specific sources of data are noted in the tables, figures, and associated texts.
The American Community Survey (ACS) by the Bureau of the Census surveyed only a small sample of the population and
therefore tends to contain large margins of errors. As such, data from the ACS throughout this report are presented only as
percentages to show magnitude and prevalence. Furthermore, certain data that are too detailed may have inherent margins of
errors that are too large to be accurate. In such cases, ACS data, although available, are not presented in this Housing
Element.
HOUSING ELEMENT • PAGE HOU-11
Costa Mesa Gene�P
POPULATION TRENDS
Orange County or the Orange County Primary Metropolitan Statistical Area
(PMSA) is part of the Los Angeles Consolidated Metropolitan Statistical Area
(CMSA) that also consists of the Los Angeles -Long Beach PMSA, Riverside -San
Bernardino PMSA and Ventura County PMSA. The City of Costa Mesa is
located in Orange County which remains the second largest PMSA in the Los
Angeles CMSA.
Movement of the population from the central Los Angeles County to adjacent
counties resulted in proportionate booms initially in the coastal counties and
more recently in the inland counties. In 1980, Orange County's population was
1,932,921 and increased by nearly 25.0 percent to 2,410,556 in 1990. Between
1990 and 2000, the population of Orange County further increased by 18.1
percent to 2,846,289. According to the 2010 Census, the population of Orange
County is now 3,010,232, an increase of 5.7 percent from the 2000 Census
estimates. The largest gains in population are being recorded in the inland
counties: Riverside and San Bernardino. However, proportionate increases have
slowed for all counties over the last seven years.
Table HOU-4: Regional Population Trends
County
9:0
1990
2000
2010
Los Angeles
7,477,238
8,863,164
9,519,338
9,818,605
Orange
1,932,921
2,410,556
2,846,289
3,010,232
Riverside
663,199
1,170,413
1,545,387
2,189,641
San Bernardino
895,016
1,418,380
1,709,434
2,042,441
Ventura
529,174
669,016
753,197
843,318
TOTAL
11,499,528
14,533,519
16,377,645
17,877,006
Source: U.S. Bureau of the Census, 1960-2010 Census.
The City of Costa Mesa is surrounded by five cities: Fountain Valley, Huntington Beach,
Irvine, Newport Beach and Santa Ana. Between 1980 and 2010, Santa Ana and
Irvine experienced the largest numerical and proportionate gains for the six -city
area, but Costa Mesa also experienced a fair amount of population gains. In
2010, Costa Mesa has a total population of 109,960 persons (Table HOU-5).
HOUSING ELEMENT • PAGE HOU-12
CITY OF COSTA MESA
Table HOU-5: Population Trends - Costa Mesa and Surrounding Cities (1980-2010)
City
1980
1990
2000
2010
Change (1980-2010)
Number
Costa Mesa
82,562
96,357
108,724
109,960
27,398
33.2%
Fountain Valley
55,080
53,691
54,978
55,313
233
0.4%
Huntington Beach
170,505
181,519
189,594
189,992
19,487
11.4%
Irvine
62,134
110,330
143,072
212,375
150,241
241.8%
Newport Beach
62,556
66,643
70,032
85,186
22,630
36.2%
Santa Ana
203,713
293,742
337,977
324,528
120,815
59.3%
Six -City Total
636,550
804,272
904,377
997,354
340,804
53.5%
TOTAL COUNTY
1,932,921
2,410,556
2,846,289
3,010,232
1,077,311
55.7%
Source: Bureau of the Census, 1980 - 2010 Census.
AGE CHARACTERISTICS
According to the 2010 Census, approximately 35 percent of the population in the
City of Costa Mesa is between the ages of 25-44 (Table HOU-6). The 55-64 age
group experienced the largest proportionate growth between 2000 and 2010,
suggesting that in the coming years, there may be an increased demand for
senior housing. The proportion of small children (under the age of five) as well
as the proportion of older children (between the ages of five and 14) both
decreased over the ten-year period. Generally, the population of persons age 55
and above all increased.
Since 1990, City, County and State median age figures closely paralleled each
other with no more of a difference than 1.5 years. In 1990, the State median age
was 31.5 years, while the City and County median ages were 31.1 years and
31.4 years, respectively. In Costa Mesa, the 2000 median age was estimated to
be 32.0 years, and by 2010 it had risen to 33.6 years. Like the median ages of
the County and the State, the median age of Costa Mesa residents will likely
continue to increase over this Housing Element period.
HOUSING ELEMENT • PAGE HOU-13
Costa Mesa Gene�P
Table HOU-6: Population by Age Groups (2000 - 2010)
Age
Group
Less Than 5 Years
Number.
7,719
iii
7.1%
-
7,191
2010
6.5%
5-14 Years
14,134
13.0%
12,555
11.4%
15-19 Years
6,415
5.9%
7,186
6.5%
20-24 Years
9,242
8.5%
9,597
8.7%
25-34 Years
23,376
21.5%
21,061
19.2%
35-44 Years
19,027
17.5%
17,150
15.6%
45-54 Years
12,503
11.5%
14,958
13.7%
55-64 Years
7,067
6.5%
10,148
9.2%
65-74 Years
5,001
4.6%
5,291
4.8%
75-84 Years
3,153
2.9%
3,348
3.0%
Greater Than 85 Years
1,087
1.0%
1,475
1.4%
TOTAL
108,724
100.0%
109,960
100.0%
Median Age
32.0 Years
33.6 Years
Source: Bureau of the Census, 2000 and 2010 Census
RACE AND ETHNICITY
According to the 2010 Census, the race/ethnic makeup of the Costa Mesa
population is comprised of White (51.8 percent), Hispanic or Latino (35.8
percent), Asian (7.7 percent), Black or African-American (1.2 percent), American
Indian and Alaska Native (0.2 percent), or other races (1.7 percent). The City's
racial/ethnic composition has changed slightly since 2000, reflecting a statewide
trend. Since the 2000 Census, the proportion of Hispanic residents had
increased to approximately 36 percent, with corresponding declines in other
racial/ethnic groups.
Table HOU-7: Race and Ethnicity (2000 - 2010)
Race/Ethnicity
White
Number
61,778
iii
Percent
56.8%
Number
56,993
2010
Percent
51.8%
Black
1,313
1.2%
1,352
1.2%
Native American
329
0.3%
266
0.2%
Asian
7,421
6.8%
8,483
7.7%
Non -Hispanic Other
3,360
3.1%
3,463
3.3%
Hispanic (of any race)
34,523
31.7%
39,403
35.8%
TOTAL
108,724
100.0%
109,960
100.0%
Source: Bureau of the Census, 2000 and 2010 Census
HOUSING ELEMENT • PAGE HOU-14
CITY OF COSTA MESA
EMPLOYMENT TRENDS
Employment by Industry
In 2010, the American Community Survey (ACS) estimates Costa Mesa's total
employment is 59,932 persons. The figure represents an increase of 3,482
persons since 2000 (Table HOU-8). Comparatively, Costa Mesa and Orange
County are similar in terms of employment industry proportions. The largest
sectors in Costa Mesa are education, health and social services (17.0 percent)
and arts, entertainment, recreation, accommodation and food services (13.7
percent).
According to the California State Employment Development Department, as of
June 2012, Costa Mesa had an estimated unemployment rate of 7.1 percent,
comparable to the countywide rate of 7.9 percent.
Table HOU-8: Costa Mesa Employment by Industry (2000-2010)
Type of
Industries
000
Number
Percent
2010
Number
Percent
Agriculture, forestry, fishing and hunting, and mining
154
0.3%
277
0.5%
Construction
3,899
6.9%
3,237
5.4%
Manufacturing
7,184
12.7%
6,289
10.5%
Wholesale trade
2,560
4.5%
2,245
3.7%
Retail trade
6,213
11.0%
7,129
11.9%
Transportation and warehousing, and utilities
1,589
2.8%
1,527
2.5%
Information
1,735
3.1%
1,334
2.2%
Finance, insurance, real estate, and rental and leasing
5,412
9.5%
5,839
9.7%
Professional, scientific, management, administrative,
and waste management services
8,424
14.9%
8,860
14.8%
Educational, health and social services
8,834
15.6%
10,204
17.0%
Arts, entertainment, recreation, accommodation and
food services
6,274
11.1%
8,217
13.7%
Other services (except public administration)
3,554
6.3%
3,638
6.1%
Public Administration
849
1.5%
1,136
2.0%
TOTAL
56,450
100.0%
59,932
100.09/6
Sources:
1. Bureau of the Census, 2000 Census.
2. 2008-2010 American Community Survey 3 -Year Estimates.
Major Employers
Over 30 employers in the City have more than 250 employees. A handful have
more than 1,000 employees (Table HOU-9). Experian Information Systems the
credit reporting industry has consistent been a major employer in the City,
followed by Coast Community College and Orange Coast College.
HOUSING ELEMENT • PAGE HOU-15
Costa Mesa Gene�P
Table HOU-9: Major Employers
Employment in various sections in Costa Mesa has been steadily increasing over
the last eight years, which in turn can generate demand for additional housing.
As employers in the City offer a variety of wage types, the City should continue to
accommodate a wide range of housing types that match the wages, such as
single room occupancy (SRO) units, apartments, attached single-family and
detached single-family homes.
HOUSEHOLD TRENDS
A household is defined as all persons occupying a housing unit. Families are a
subset of households, and include all persons living together who are related by
blood, marriage, or adoption. Single households include persons living alone in
housing units, but do not include persons in group quarters such as convalescent
homes or dormitories. Other households are unrelated people living together,
such as roommates.
Household Growth
In 1960, 12,973 households resided in the City of Costa Mesa and that number
nearly doubled by 1970 (Table HOU-10) Between 1950 and 1970, the City
added 20,312 households, while increasing its land area through annexations
from 3.5 square miles to 14.7 square miles. The City continued to experience
large increases in the number of households through the 1970s but its growth
had slowed over the past 30 years as the City became increasingly built -out. As
of 2010, there were 39,946 households within 16 square miles in the City.
HOUSING ELEMENT • PAGE HOU-16
NumberName ..
Experian Information Solutions
3,700
Coast Community College District Foundation
2,900
Orange Coast College
2,500
Coast Community College District
2,500
Hyundai Motor America
1,600
Fairview Developmental Center
1,500
Automobile Club of Southern California
1,200
First Team Real Estate
1,025
Pacific Building Care
850
IBM
750
Source: City of Costa Mesa, Costa Mesa Comprehensive Annual Financial Report, 2011.
Employment in various sections in Costa Mesa has been steadily increasing over
the last eight years, which in turn can generate demand for additional housing.
As employers in the City offer a variety of wage types, the City should continue to
accommodate a wide range of housing types that match the wages, such as
single room occupancy (SRO) units, apartments, attached single-family and
detached single-family homes.
HOUSEHOLD TRENDS
A household is defined as all persons occupying a housing unit. Families are a
subset of households, and include all persons living together who are related by
blood, marriage, or adoption. Single households include persons living alone in
housing units, but do not include persons in group quarters such as convalescent
homes or dormitories. Other households are unrelated people living together,
such as roommates.
Household Growth
In 1960, 12,973 households resided in the City of Costa Mesa and that number
nearly doubled by 1970 (Table HOU-10) Between 1950 and 1970, the City
added 20,312 households, while increasing its land area through annexations
from 3.5 square miles to 14.7 square miles. The City continued to experience
large increases in the number of households through the 1970s but its growth
had slowed over the past 30 years as the City became increasingly built -out. As
of 2010, there were 39,946 households within 16 square miles in the City.
HOUSING ELEMENT • PAGE HOU-16
CITY OF COSTA MESA
Table HOU-10: Household Trends (1960 - 2010)
Households
1960 12,973
---
---
1970 24,152
11,179
86.2%
1980 32,637
8,485
35.1%
1990 37,467
4,830
14.8%
2000 39,206
1,739
4.6%
2010 39,946
741
1.9%
Source: Bureau of the Census, 1950-2010 Census.
Household growth rate is the primary factor in determining housing needs. Even
during periods of fairly static population growth, there may be an increase in
households due to: 1) young people leaving home; 2) divorce; 3) aging of the
population; and 4) other social activities that cause people to occupy a new
residence. Conversely, the population may increase in fairly static household
growth periods. Between 1970 and 1980, household growth far exceeded
population growth, while in more recent times population has been slightly
greater than household growth. The difference between population and
household growth rates has resulted in a fluctuating household size over the
years.
Household Size
The City of Costa Mesa has a smaller average household size (2.68 persons per
household) than the County (2.99 persons per household) and the State (2.90
persons per household), generally reflecting a community where young families
with children and young adults represent a smaller component of the community.
However, consistent with countywide and statewide trends, average household
size in Costa Mesa has held steady over the last decade.
In 2010, nearly 60 percent of the Costa Mesa population was in a one or two
person household, similar to the County in general (Table HOU-11). Generally
between 2000 and 2010, the distribution of households based on their size
remained the same, with a slight increase in the number of 3 and 4 person
households.
HOUSING ELEMENT • PAGE HOU-17
Costa Mesa Gene�P
Table HOU-11: Household Size Trends (Costa Mesa and Orange County — 2000-2010)
iii 2010
Number Percent Number Percent
City of Costa Mesa
1 person
11,006
28.1%
10,963
27.4%
2 person
12,398
31.6%
12,605
31.6%
3-4 person
10,351
26.4%
11,050
27.7%
5+ person
5,452
13.9%
5,328
13.3%
TOTAL
39,207
100.0%
39,946
100.0%
Orange County
1 person
197,010
21.0%
207,849
20.9%
2 person
277,708
29.7%
290,542
29.3%
3-4 person
298,241
31.9%
325,599
32.8%
5+ person
163,195
17.4%
168,809
17.0%
TOTAL
936,154
100.0%
992,781
100.0%
Source: Bureau of the Census, 2000 and 2010 Census.
Tenure
Costa Mesa has a higher proportion of renters than most communities in Orange
County. From 2000 to 2010, according to the Census, the percentage of renters
decreased slightly from 60 percent to 57 percent. Among all renter -households,
about 20 percent were using single-family homes as rentals. Countywide, 41
percent of the households were renters in 2010.
Table HOU-12: Households by Tenure Trends (2000-2010)
Household Income
Over the ten-year period between 1990 and 2010, median household income in
Costa Mesa increased from $55,456 to $64,864, an increase of 17 percent. The
number of households with incomes below $50,000 decreased by 22 percent,
while households earning above $75,000 increased substantially (Table HOU-
13). The most dramatic increases occurred in the greater than $100,000 income
groups. From 2000 to 2010, the largest numeric increase (+2,847 households or
126 percent) occurred in the number of households earning greater than
$150,000 annually. Conversely, the largest numeric decrease occurred in the
$25,000 to $34,999 income group. Generally, the 2010 Census reflects a
continuing shift to the higher income categories in the City. The shifts in income
distribution are a combined result of inflation, real change in earning power, and
higher housing prices affordable only to higher income households. Overall,
Costa Mesa has a lower median household income than the County.
HOUSING ELEMENT • PAGE HOU-18
CITY OF COSTA MESA
Between 2000 and 2010, the median household income increased at 1.7 percent
annually, while values of owner -occupied homes increased at 6.8 percent and
median rents increased at 29.9 percent. In 2010, the median home price in
Costa Mesa was $644,900, a 136 -percent increase from 2000. In summary,
household incomes are not keeping pace with housing prices in Costa Mesa,
much like the rest of California.
Table HOU-13: Households by Income Level (2000-2010)
Income
GroupsNumber
000(2000-2010)
Percent
Number Percent
Number
Less than $10,000
2,334
6.0%
1,688 4.2%
-646 -27.7%
$10,000 to $14,999
1,727
4.4%
1,407 3.5%
-320 -188.5%
$15,000 to $24,999
3,966
10.1%
3,318 8.3%
-648 -16.3%
$25,000 to $34,999
4,437
11.3%
2,939 7.3%
-1,498 -33.8%
$35,000 to $49,999
6,742
17.2%
5,466 13.6%
-1,276 -18.9%
$50,000 to $74,999
8,834
22.5%
8,113 20.2%
-721 -8.2%
$75,000 to $99,999
4,887
12.5%
5,714 14.2%
827 17.4%
$100,000 to $150,000
4,020
10.3%
6,352 15.8%
2,332 58.0%
Greater than $150,000
2,260
5.7%
5,107 12.8%
2,847 126.0%
TOTAL
39,207
100.0%
40,104 100.0%
897 2.3%
Median Income
$55,456
$64,864
$9,408 17%
County Median Income
$58,820
$74,344
$15,524 26%
Source: Bureau of the Census, 2000 and 2010 Census.
SPECIAL NEEDS POPULATIONS
Certain segments of the community may need special consideration with regards
to housing. For the purposes of the Housing Element, special needs groups are
defined as: elderly, persons with disabilities, large households, single -parent
households, farmworkers, and the homeless.
Elderly
Elderly persons (age 65 or older) may live in housing that costs too much or live
in housing that does not accommodate their specific needs for assistance. In
2000, there were 5,717 elderly -headed households, which represented 14.7
percent of the total households in the City. Between 2000 and 2010, the number
of elderly -headed households increased to 6,339 at an average of 1.1 percent
annually, much faster than the rate of general household growth (0.5 percent).
Elderly households represented 15.9 percent of the City's total households in
2010. As the proportion of elderly households continues to increase in Costa
Mesa, the provision of housing options for elderly persons should be a priority.
In 2010, 29.6 percent of the elderly households in the City were renters,
compared to 23 percent in Orange County. The proportion of senior renters in
Costa Mesa has decreased since 1990 when 36.5 percent of elderly households
were renters. Change in the proportion of senior renters is dependent on the
quantity of housing options and the propensity to convert to ownership. A
majority of the elderly population (56.3 percent) was living in family households,
HOUSING ELEMENT • PAGE HOU-19
Costa Mesa Gene�P
which are defined as a householder living with one or more persons related by
birth, marriage or adoption.
Elderly households tend to rely on fixed and lower incomes. According to the
CHAS data 2, more than half of the City's elderly renter -households had extremely
low and low incomes. In comparison, a majority of the City's elderly owner -
households had moderate or above moderate incomes (Table HOU-14).
An important measure of housing affordability is "cost burden." Cost burden is
defined as monthly housing costs in excess of 30 percent of a household's gross
income, and severe cost burden is defined as housing costs exceeding 50
percent of gross household income. According to the CHAS data, Census, 56.1
percent of the elderly renter -households had a housing cost burden in Costa
Mesa, compared to 35.8 percent of the elderly owner -households (Table HOU-
14). Among the extremely low income group, cost burden impacted owner- and
renter -households almost equally. However, for very low and low income
households, cost burden was more prevalent among renters than among owners.
Three senior apartment complexes are located in the City of Costa Mesa. All are
subsidized through various public programs, such as the HUD Section 202.
Currently, the vacancy rate is zero percent in these properties and the turnover is
low. Subsequently, waiting lists for these units are very long. The three
complexes include: Bethel Towers (268 units), St. John's Manor (36 units), and
Casa Bella (74 units). Some elderly residents are served through other publicly
assisted properties with smaller unit sizes, such as Costa Mesa Village (96
units), Park Place Village (60 units), and Newport Senior Village (91 units for
seniors only). These are single -room occupancy units (SROs). In addition the
City is home to several senior mobile home parks and many assisted
living/skilled nursing facilities. A 215 -unit market -rate senior housing project is
also under construction (at 1500 Mesa Verde Drive East).
The City of Costa Mesa is committed to serving the needs of its elderly
population and therefore supports efforts related to: age restricted mobile home
parks, independent retirement living, assisted living, residential care, and skilled
nursing facilities. In addition, the City also has a second unit ordinance (updated
in 2011) that offers affordable housing opportunities for lower and moderate income
households.
2 Comprehensive Housing Affordability Strategy (CHAS) data were developed by the Bureau of the Census for the
U.S. Department of Housing and Urban Development (HUD) using 2005-2009 American Community Survey.
HOUSING ELEMENT • PAGE HOU-20
CITY OF COSTA MESA
Table HOU-14: Income Distribution and Cost Burden for Elderly Households (2005-2009)
Income
Elderly •
Total
Households
%
Cost
Burden
..Renter
% Severe
Cost
Burden
Total
Households
-Households
%
Cost
Burden
% Severe
Cost
Burden
TOTAL ELDERLY HOUSEHOLDS
4,370
35.8%
19.8%
2,220
56.1%
38.5%
Extremely Low (Up to 30% AMI)
820
59.7%
48.1%
900
83.3%
64.4%
Very Low Income (31-50% AMI)
510
68.6%
38.2%
340
73.5%
60.3%
Low Income (51-80% AMI)
900
30.5%
13.3%
340
48.5%
20.6%
Moderate/Above Moderate Income
2,140
21.0%
7.2%
640
15.6%
0.0%
More than 80% AMI
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2005-2009.
Persons with Disabilities
Persons with disabilities usually have special housing needs, particularly in terms
of affordability, accessibility, and proximity to employment, social services, and
medical services. The Census defines disability as a long-lasting physical,
mental, or emotional condition. This condition can make it difficult for a person to
do activities such as walking, climbing stairs, dressing, bathing, learning, or
remembering. This condition can also impede a person from being able to go
outside the home alone or to work at a job or business.
In 2011, a total of 8,259 persons age five and above in Costa Mesa had one or
more disabilities, representing 16.1 percent of the population (Table HOU-15). In
comparison, 16.6 percent of the County of Orange residents aged five and above
were considered disabled. Among the City's disabled residents (in working age),
the majority (61 percent) were employed, although many may be under-
employed or not making adequate incomes to afford housing, health care, and
other necessities.
Table HOU-15: Disabled Persons by Age (2009-2011)
Age Group
Age 5 to 17
Number
489
Percent of Total
Population
0.5%
Age 18 to 64
4,315
4.2%
Age 65 and Above
3,455
3.4%
8,259
8.1%
Source: 2009-2011 American Community Survey 3 -Year Estimates
Persons with Developmental Disabilities
According to Section 4512 of the California Welfare and Institutions Code a
"Developmental disability" means a disability that originates before an individual
attains age 18 years, continues, or can be expected to continue, indefinitely, and
constitutes a substantial disability for that individual which includes mental
retardation, cerebral palsy, epilepsy, and autism. This term shall also include
disabling conditions found to be closely related to mental retardation or to require
treatment similar to that required for individuals with mental retardation, but shall
not include other handicapping conditions that are solely physical in nature.
HOUSING ELEMENT • PAGE HOU-21
Costa Mesa Gene�P
Many developmentally disabled persons can live and work independently within a
conventional housing environment. More severely disabled individuals require a
group living environment where supervision is provided. The most severely
affected individuals may require an institutional environment where medical
attention and physical therapy are provided. Because developmental disabilities
exist before adulthood, the first issue in supportive housing for the
developmentally disabled is the transition from the person's living situation as a
child to an appropriate level of independence as an adult.
The State Department of Developmental Services (DDS) currently provides
community based services to approximately 243,000 persons with developmental
disabilities and their families through a statewide system of 21 regional centers,
four developmental centers, and two community-based facilities. The Regional
Center of Orange County and the Fairview Developmental Center provide point
of entry to services for people with developmental disabilities. These centers are
private, non-profit community agencies that contract with local businesses to
offer a wide range of services to individuals with developmental disabilities and
their families.
Table HOU-16 provides information from the Regional Center of Orange County
on the number of developmentally disabled individuals in Costa Mesa. In 2012,
there were approximately 675 individuals (0.6% of the total population) actively
utilizing services at the Regional Center for a developmental disability.
Table HOU-16: Developmentally Disabled Residents by Status
The City of Costa Mesa is dedicated to accommodating the needs of disabled
persons and supports the Fairview Developmental Center and other residential
facilities in the City. In September 2012, a total of 10 community care facilities in
Costa Mesa are licensed by the State Department of Social Services to serve the
supportive housing and service needs of persons with disabilities. These
facilities provide 89 beds for developmentally disabled residents; another 90
clients are served by two adult day care facilities. In addition, the City of Costa
Mesa is home to the Fairview Developmental Center that serves developmentally
disabled persons. Fairview is licensed for 1,200 beds and currently has 850
beds. As of June 2012, there were approximately 375 individuals living at the
facility. Harbor Village (formerly the Fairview Housing Project) gives priority to
employees and transitional patients of Fairview Developmental Center.
Female -Headed Households
According to the 2010 Census, female -headed families represented 10.5 percent
of all households in the City, with approximately half of these families consisting
of single -parents with children. In 2010, the poverty level was $17,288 for a four -
person family. Of the female -headed families with children, 10.4 percent were
living below the poverty level in 2010, compared to 6.1 percent of all families with
children.
HOUSING ELEMENT • PAGE HOU-22
CITY OF COSTA MESA
The City of Costa Mesa recognizes the needs of single -parent households. To
expand housing opportunities in areas near schools, jobs, child care, and
transportation, the City created three Urban Plans to encourage mixed-use
developments in three distinct areas. Programs that address affordable housing
for lower and moderate income households benefit female -headed households.
In addition, incentives are provided in the City's density bonus provisions to
encourage affordable housing that incorporates child care facilities. The City's
new Family Residential Occupancy (FRO) program encourages the development
of or conversion of hotel rooms into small housing units that are geared toward
small households, including single -parent households.
Table HOU-17: Household type (2000-2010)
Household Type
TOTAL
000
Number Percent
39,206
of Total
100.0%
2010
Number
40,104
Percent of Total
100.0%
Families
22,776
58.1%
23,887
59.6%
Married Couples
16,762
42.8%
17,127
42.7%
With Children
8,435
21.5%
8,304
20.7%
Female -Headed
4,028
10.3%
4,196
10.5%
With Children
2,137
5.5%
2,300
5.7%
Non -Families
16,440
41.9%
16,217
40.4%
Singles
11,006
28.1%
11,479
28.6%
Elderly (65+)
2,489
6.3%
2,769
6.9%
Source: Bureau of the Census, 2000 and 2010 Census.
Large Households
A large household is defined as a household consisting of five or more persons.
In 2010, 13.3 percent of the households in the City of Costa Mesa consisted of
five or more persons, indicating a slight decrease from 2000 when 13.9 percent
of the City households were large households (see Table HOU-11). In 2010,
large households comprised 17 percent of County households.
Often, an issue with housing large households, particularly those of lower
incomes, is overcrowding. Overcrowding is defined as a housing unit occupied
by more than one person per room. A severely overcrowded housing unit is one
with more than 1.5 persons per room. A room is defined as a bedroom, living
room, dining room, or finished recreation room, but excludes kitchen and
bathroom.
In 2010, 6 percent of the households in the City were considered overcrowded
and 2 percent were considered severely overcrowded. Overcrowding tends to
impact renter -households more severely than owner -households. According to
the American 2006-2010 American Community Survey, 2,912 renter -households
(12.8 percent of all renters) and 294 owner -households (1.7 percent of all
owners) were overcrowded.
HOUSING ELEMENT • PAGE HOU-23
Costa Mesa Gene�P
Table HOU-18: Overcrowding (2000-2010)
Overcrowding is largely a result of the lack of large rental units and the fact that
most large renter -households are unable to afford the large ownership units. For
example, a total of 3,521 large renter -households resided in Costa Mesa in 2010,
while there were only 710 rental units with four or more bedrooms. In
comparison, 5,906 large owner units were potentially available to 1,807 large
owner -households in the City (see Table HOU-19 and Table HOU-20).
Table HOU-19: Households by Tenure and Unit Size (2010)
Bedroom
Type
2000
Number
Percent
2010
Number
Percent
Change
Number
:lPercent
Owner -Households
15,811
40.3%
17,421
43.4%
1,610
10.2%
Overcrowding
350
2.2%
259
1.5%
-91
-26.0%
Severe Overcrowding
409
2.6%
35
0.2%
-374
-91.4%
Renter -Households
23,377
59.7%
22,683
56.6%
-694
-2.9%
Overcrowding
1,433
6.1%
2,093
9.2%
328
29.7%
Severe Overcrowding
3,893
16.7%
819
3.6%
1,787
84.5%
TOTAL HOUSEHOLDS
39,188
100%
40,104
100%
758
1.9%
Overcrowding
1,783
4.5%
2,352
5.9%
569
31.9%
Severe Overcrowding
1 4,302
11.0%
854
2.1%
-3,448
-80.1%
Sources:
1. Bureau of the Census, 2000 Census.
2. 2006-2010 American Community Survey.
Note: Overcrowding data is based on sample data. Total number of households deviates slightly from 100 -percent Census
counts.
Overcrowding is largely a result of the lack of large rental units and the fact that
most large renter -households are unable to afford the large ownership units. For
example, a total of 3,521 large renter -households resided in Costa Mesa in 2010,
while there were only 710 rental units with four or more bedrooms. In
comparison, 5,906 large owner units were potentially available to 1,807 large
owner -households in the City (see Table HOU-19 and Table HOU-20).
Table HOU-19: Households by Tenure and Unit Size (2010)
Bedroom
Type
• ..Renter -Households
Number Percent Number
Percent
0 Bedroom
48
0.3% 916
4.0%
1 Bedroom
401
2.3% 6,932
30.5%
2 Bedrooms
2,763
15.9% 11,435
50.4%
3 Bedrooms
8,303
47.7% 2,690
11.9%
4 Bedrooms
5,109
29.3% 592
2.6%
5+ Bedrooms
797
4.5% 118
0.6%
TOTAL
17,421
100.0% 22,683
100.0%
Source: Bureau of the Census, 2010 Census.
HOUSING ELEMENT • PAGE HOU-24
CITY OF COSTA MESA
Table HOU-20: Households by Tenure and Household Size (2010)
Household
Size
Owner HouseholdsHouseholds
Number
Percent
Number Percent
1 Person
3,585
22.7%
7,378 30.6%
2 Persons
5,457
34.5%
7,148 29.6%
3 Persons
2,648
16.8%
3,537 14.6%
4 Persons
2,302
14.6%
2,563 10.6%
5 persons
979
6.2%
1,548 6.4%
6 Persons
406
2.6%
897 3.7%
7+ Persons
422
2.6%
1,076 4.5%
TOTAL
15,799
100.0%
24,147 100.0%
Source: Bureau of the Census, 2010 Census.
Aside from overcrowding, large households are also impacted by housing cost
burden. Overall, cost burden affected large owner- and renter -households
almost equally (see Table HOU-21). However, cost burden decreased with
income increases for renter -households. The decrease was less prominent
among owner -households.
The City's strategy for addressing overcrowding is to expand rental and
ownership housing opportunities in the City, allowing persons/families that double
up in housing arrangements to occupy separate housing. In addition, room
addition is an eligible activity under the City's Single -Family Rehabilitation
Program if overcrowding is an issue. Furthermore, renter -occupied detached
homes also help address the issue of overcrowding.
Table HOU-21: Income Distribution and Cost Burden for Large Households (2005-2009)
Income
Large •
Total
Households
%
Cost
.-
..
% Severe
Cost
.-
.•Renter
Total
-Households
%
Cost
.•Burden
% Severe
Cost
TOTAL LARGE HOUSEHOLDS
1,455
51.5%
28.2%
2,005
69.9%
31.4%
Extremely Low (Up to 30% AMI)
95
100.0%
100.0%
530
92.5%
93.4%
Very Low Income (31-50% AMI)
265
66.0%
50.9%
665
67.9%
16.5%
Low Income (51-80% AMI)
210
52.3%
16.7%
540
14.0%
5.6%
Moderate/Above Moderate Income
885
41.8%
16.4%
270
2.7%
0.0%
More than 80% AMI
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2005-2009.
Farmworkers
Currently, there are two remaining farms in the City of Costa Mesa: Sakioka
Farm and Segerstrom Farm. In 2009, the City of Costa Mesa requested the
California Department of Conservation remove Sakioka Farms from the State
Farmland Map. Specifically, the properties listed above be designated as Land
Committed to Non -Agricultural Use and designated on the Farmland Map as
Urban and Built -Up Land. Segerstrom Farm is designated for Commercial
Center use. The General Plan Land Use Designations and Development
HOUSING ELEMENT • PAGE HOU-25
Costa Mesa Gene�P
Agreements on each of the subject properties allow for commercial
and/residential development. Limited agricultural activities on these properties
will be phased out.
Due to the limited nature of agricultural activities in the City, the housing needs of
farmworkers in the City of Costa Mesa are considered to be minor and may be
addressed through existing housing strategies.
Homeless Persons
Specific information on the homeless in individual jurisdictions within Orange
County is not available. Service providers can only comment on the number of
homeless persons they serve but are not able to estimate the number of those
who do not seek assistance from their agencies, nor are the agencies able to
address the duplicative count issue (one person seeking assistance in several
agencies are often counted more than one time).
According to the 2010-2014 Consolidated Plan for Costa Mesa, the 2009 Point In
Time Survey of the homeless conducted by the County of Orange and OC
Partnership, it is estimated there may be as many as 930 homeless individuals
that consider themselves to be Costa Mesa residents (1,295 over the course of a
year). Similar to other Orange County cities, the seasonal need for
homeless/emergency shelters is typically heightened during late fall, winter, and
early spring seasons, and it is during these cold -weather periods that the
demand for shelter is generally higher. According to the Consolidated Plan,
based on accomplishment data submitted by service providers funded by the
City, about 113 persons were provided emergency shelter assistance and 257
persons were provided transitional housing between 2006 and 2012.
A number of agencies in Costa Mesa provide shelters and services for the
homeless and persons at risk of becoming homeless. These include:
♦ HOPE Institute (YWCA of Central Orange County)
♦ Human Options
♦ Mental Health Activities Center
♦ Orange Coast Interfaith Shelter
♦ Serving People in Need (SPIN)
♦ Share Our Selves (SOS) Emergency Services
♦ Someone Cares Soup Kitchen
Through the annual CDBG allocation process, the City provides funding to
agencies that serve various special needs groups in the City.
HOUSING PROFILE
This section analyzes housing characteristics, housing conditions, housing costs,
and vacancy trends, in order to assess the present and future supply of housing
in Costa Mesa.
HOUSING GROWTH
Consistent with an urbanized, built -out community, Costa Mesa has seen modest
housing growth since 1990. The housing stock grew from 39,611 in 1990 to
42,867 in 2010, an 8 percent increase over 20 years. In comparison, Orange
HOUSING ELEMENT • PAGE HOU-26
CITY OF COSTA MESA
County experienced the same proportion of housing unit growth (8 percent) in
just the last 10 years.
Table HOU-22: Housing Units by Type (1990-2010)
Housing "0
Type Number Percent
2000
Number Percent
2010
Number
Percent
18,847
47.6%
19,467
48.2%
21,275
49.6%
2-4 Units 5,922
14.9%
5,855
14.4%
5,811
13.6%
5+ Units 13,620
34.4%
13,871
34.4%
14,835
34.7%
Mobile 1,222
3.1 %
1,213
3.0%
946
2.1/° °
Home/Other
TOTAL 39,611
100.0%
40,406
100.0%
42,867
100.0%
Sources:
1. Bureau of the Census, 1990 and 2000
Census.
2. 2006-2010 American Community Survey 5 -Year Estimates.
VACANCY TRENDS
Vacancy trends in housing establish the relationship between housing supply and
demand. For example, if the demand for housing is greater than the available
supply, then the vacancy rate is probably low, and the price of housing will most
likely increase or remain stable.
According to the 2010 Census, the overall vacancy rate was 6.4 percent (2,763
vacant units) in the City of Costa Mesa, compared to 5.5 percent for Orange
County. Most of the vacant units were rental units, comprising 68 percent of all
vacant units. Vacant units for sale comprised 11 percent of all vacant units
(Table HOU-23). The remaining vacant uses are occupied seasonally or for
recreational uses.
Table HOU-23: Vacancy by Type (2006-2010)
Type of Vacant Units
For Rent
Number
1,868
Percent of all Vacant
Units
67.6%
For Sale Only
298
10.8%
For Seasonal, Recreational, or Occasional Use
304
11.0%
Other
293
10.6%
TOTAL
2,763
100.0%
Source: U.S. Census Bureau, 2006-2010 American Community Survey
Note: "Other" vacant units include units that are boarded up, and held vacant by the owners for personal reasons.
HOUSING CONDITIONS
As a general rule, housing units require major repairs and rehabilitation after 20
to 30 years. As an older and built out community, more than 75 percent of the
housing units were built prior to 1980. Specifically, 79 percent of the owner units
and 77 percent of the renter units were constructed prior to 1980; these units are
either older than or approaching 30 years of age, potentially requiring major
repairs or rehabilitation.
HOUSING ELEMENT • PAGE HOU-27
Costa Mesa Gene�P
Substandard is defined as either in need of rehabilitation or replacement. Overall,
the City's housing stock is in good conditions. According to the City's Code
Enforcement staff, less than ten percent of the City's housing stock is in need of
minor repairs. Only two percent of the housing units may be considered in need of
substantial rehabilitation and fewer than five units in the entire City are in need of
replacement.
The City of Costa Mesa takes a proactive approach toward housing conditions
through housing rehabilitation programs and code enforcement programs. Existing
housing rehabilitation and code enforcement programs are successfully correcting
code violations and maintaining the housing stock.
In 2000, the City of Costa Mesa adopted Title 20: Costa Mesa Property
Maintenance Regulations intended to identify property maintenance standards
and establish procedures for the prosecution and abatement of public nuisance
conditions identified therein. Through these regulations, City Code Enforcement
staff is able to encourage homeowners and apartment building owners to
maintain their property by painting, relandscaping and correcting various property
maintenance issues such as, removal of inoperative vehicles, enclosure of trash
bins, onsite drainage issues, abatement of weeds and rubbish from properties
and other issues identified in Title 20. It is through these efforts that the number
of substandard housing units in Costa Mesa is minimized.
HOUSING COSTS AND AFFORDABILITY
One of the major barriers to housing availability is the cost of housing. In order to
provide housing to all economic levels in the community, a wide variety of
housing opportunities at various prices should be made available. The following
table describes the ideal monthly payment for households in the five major
income groups: extremely low, very low, low, moderate, and above -moderate.
HOUSING ELEMENT • PAGE HOU-28
CITY OF COSTA MESA
Table HOU-24: Affordability by Income Group (2012)
Annual
.Insurance,
Affordable
Costs (includes
and Utilities)
Ownership
Rental
Affordable.Affordable
Rent
Extremely Low Income
1 -Person
$20,475
$512
$512
$86,944
$462
3 -Person
$23,025
$576
$576
$87,798
$476
4 -Person
$25,590
$640
$640
$95,568
$515
5 -Person
$27,630
$691
$691
$94,657
$516
Very Low Income
1 -Person
$29,850
$746
$746
$120,307
$696
3 -Person
$38,375
$959
$959
$150,966
$859
4 -Person
$42,650
$1,066
$1,066
$165,842
$941
5 -Person
$46,050
$1,151
$1,151
$172,052
$976
Low Income
1 -Person
$41,790
$1,045
$1,045
$175,363
$997
3 -Person
$53,725
$1,343
$1,343
$212,801
$1,218
4 -Person
$59,710
$1,493
$1,493
$229,282
$1,318
5 -Person
$64,470
$1,612
$1,612
$246,668
$1,412
Median Income
1 -Person
$65,670
$1,915
$1,642
$284,675
$1,507
3 -Person
$84,425
$2,462
$2,111
$378,855
$1,954
4 -Person
$93,830
$2,737
$2,346
$404,585
$2,135
5 -Person
$101,310
$2,955
$2,533
$432,354
$2,295
Source: Hogle-Ireland, Inc. 2012.
Assumptions: 2012 HCD median income for Orange County - $83,500; affordable housing costs based on Health and Safety Code
standards; 15% of monthly affordable cost for taxes and insurance; 10% downpayment; and 6% interest rate for a 30 -year fixed-rate
mortgage loan.
Single -Family Home Sales
Regional home prices of single-family homes tripled between 1970 and 1979 and
continued to increase through the 1980s. In the early 1990s, the residential
market declined and continued to decline until approximately 2000. Starting in
the year 2000, extending until 2008, housing prices increased dramatically in
Costa Mesa and throughout California. However, following the economic
downturn of 2008, housing prices have fallen drastically. With the decline of
housing prices, a new problem occurred throughout California - defaults on
subprime mortgages. Between 2000 and 2006 (during the peak of the housing
market), many homeowners acquired mortgages that they could not afford, often
due to variable interest rate loans, or other "creative" financing such as zero
downpayment or negative amortization loans. From 2008 to 2011 numerous
homeowners were faced with foreclosure on their properties resulting in an
increased demand for rental housing. As the home ownership market evens out,
many homeowners are still addressing their financing and the rental market in
the City and County is tight, due to high demand.
HOUSING ELEMENT • PAGE HOU-29
Costa Mesa Gene�P
In 2007, the median single-family home price (based on units sold) in Costa
Mesa was approximately $750,000, but by June 2012, the median price had
decreased to $530,000.3 Nevertheless, current home prices are significantly
higher than they were 10 years ago. For example, in 1997, the median single-
family home price was $220,000.
In Orange County, the median single-family sales price decreased from $610,000
in the third quarter of 2007 to $462,100 by the second quarter of 2012. In
comparison to surrounding jurisdictions, the City of Costa Mesa offers a fair
range of single-family prices. In the second quarter of 2012, Costa Mesa had a
median single-family sales price of $515,000, which was much less than Newport
Beach, but comparable to surrounding jurisdictions, including Huntington Beach,
Irvine, and Fountain Valley.
Condominium Sales
According to Zillow.com, a real estate data service, the median price of
condominiums in the City of Costa Mesa was $322,300 in 2012 (second quarter).
By comparison, median condominium sales price in the City of Costa Mesa was
moderately expensive amongst surrounding jurisdictions, below Irvine and
Newport Beach, but above Huntington Beach, Fountain Valley, and Santa Ana.
The City condominium sales were priced just below the county median of
$329,800 as of the second quarter of 2012.
Condominiums offer a niche in the housing market between the single-family
sales and the rental market. With sales prices in the $260,000 to $700,000
range, moderate income groups could afford to own condominiums priced in the
lower end of this range in Costa Mesa. However, most condominiums are not
affordable for lower income households.
Rental Units
According to a citywide apartment survey conducted in May and June 2007 as
part of this Housing Element update, rental rates for apartments in Costa Mesa
range from $750 a month for a studio to $2,550 a month for a three-bedroom
apartment (Table HOU-25). According to interviews with property
owners/managers, apartment rents have been increasing at approximately $50
per year.
As shown in Table HOU-25, market rents in Costa Mesa are affordable to all
moderate income households and some low income households. Very low and
extremely low income households are not able to afford the rent in the City
without the cost being a burden. A key problem in comparing Table HOU-24 and
Table HOU-25 is the rent for larger units of 3 or more bedrooms, and the
affordable rent for large households. Larger households in each income category
are unlikely to be able to afford the rent for a larger unit.
3 2012 home price data obtained from Dataquick and Zillow.
HOUSING ELEMENT • PAGE HOU-30
CITY OF COSTA MESA
Table HOU-25: Apartment Rents (2012)
Unit Size
Average Rent
Rent Range
Studio
$955
$550-$1,360
One-Bedroom/One-Bathroom
$1,250
$800-$1,609
Two-Bedroom/One-Bathroom
$1,630
$1,185-$1,855
TOTAL
$1,590
$550-$3,150
Source: Hogle-Ireland, Inc. 2012, based on an online survey of units available for rent in the City. A total of 75 complexes were
reviewed.
Affordability
Affordability can be defined as a household spending 30 percent or less of
household income for housing. Housing costs include rent or mortgage
payments, insurance, taxes, and utilities.
According to the California Association of Realtors (CAR), Orange, Los Angeles,
and San Diego counties had the least affordable home prices to first-time
homebuyers. To afford a median priced single-family home in Costa Mesa, an
annual salary of $107,360 would be needed and a person has to make
approximately $67,080 to afford a median priced condominium. Most
occupations in Orange County offer much lower salaries. Similarly, most
occupations offer wages below what would be needed to afford an average
priced three-bedroom apartment in Costa Mesa. As shown in Table HOU-24, the
median home prices are only affordable to some moderate income households
and not to households earning less. Comparing Table HOU-24 and Table HOU-
25 for a low-income family of four, the affordability gap to buy a home in
Costa Mesa is approximately $285,720 and the gap for a moderate
income family of four is still $110,415.
COASTAL ZONE HOUSING
California Government Code requires that Housing Elements include information
regarding changes to the housing stock within the Coastal Zone. A majority of
the Coastal Zone property in Costa Mesa is in public ownership and is
designated as open space. Of the total 125.1 acres, approximately 97.7 acres
are owned by the County of Orange, while 27.3 acres are owned by the City of
Costa Mesa. The remaining acreage includes a privately owned 0.28 -acre parcel
containing a 16 -unit condominium project. There has been no change to the
City's Coastal Zone housing stock since 1991.
AFFORDABLE HOUSING AND AT -RISK STATUS
California Housing Element Law requires all jurisdictions to include a study of all
low-income housing units which may be lost to the affordable inventory by the
expiration of some type of affordability restrictions. The law requires that the
analysis and study cover a ten-year period. For this Housing Element, the at -risk
analysis covers the ten-year period from October 15, 2013 through October 15,
2023.
HOUSING ELEMENT • PAGE HOU-31
Costa Mesa Gene�P
Inventory of Publicly Assisted Rental Housing
The following inventories include all government assisted rental properties in the
City of Costa Mesa. Generally, the inventory consists of HUD Orange County
multi -family bonds and density bonus properties. Target levels include the very
low and the low income groups. Many affordable housing projects in the City
maintain 55 -year affordability covenants.
In 2006, the Costa Mesa City Council approved an agreement with St. John's
Manor to extend the affordability covenant for 55 years in exchange for financial
assistance to address rehabilitation needs. In 2012, Bethel Towers, through tax-
exempt revenue bonds, extended its affordability covenant for 55 years.
Table HOU-26: Inventory of Public Assisted Complexes (2012)
HOUSING ELEMENT • PAGE HOU-32
of Project
AddressName
Expiration
Level
Units
Bethel Towers
666 W. 19'h St.
Senior
2067
LIHTC
Low
270
Casa Bella
1840 Park Ave.
Senior
9/11/2015
HUD Section 8
Low
75
HUD Section 8
12/2/2015
HOME, CM
St. John's Manor
2031 Orange Ave.
Senior
Redevelopment,
Very Low
36
5/2062
Federal Rental
Rehab
2015 -2019 Pomona
Costa Mesa Family
CM
Very
Village
755-771Ave.
W. 20th St.
General
12/2038
Redevelopment
Low/Low
72
1924-1932 Wallace
Ground Lease
Ave.
Park Place Village
1662 Newport Blvd.
General
Perpetuity
Land Use
Very Low
60
SRO
Restriction
Costa Mesa Village
OC Housing
(SRO)
2450 Newport Blvd.
General
Perpetuity
Authority, CM
Very Low
96
Redevelopment
Newport Senior
2080 Newport Blvd.
Senior
Perpetuity
Land Use
Very
91
Village (SRO)
Restriction
Low/Low
HOME
Rehabilitation
734-744 James Street
General
4/2049
HOME
Very Low/Low
11
Project #1
HOME
Rehabilitation
745 W. 18`h Street
General
5/2056
HOME
Very Low/Low
3
Project #3A
HOME
HOME, Federal
Rehabilitation
717-721 James Street
General
6/2058
Rental Rehab
Very Low/Low
8
Project #6
HOME
707-711 W. 18`h
CM
Rehabilitation
Street
General
5/2056
Redevelopment
Very Low/Low
8
Project #3B
Other Density
Land Use
Very
Bonus Units
Scattered
General
Various
Restriction
Low/Low/
156
Moderate
Developmentally
Very
Harbor Village
2501 Harbor
Disabled and
Perpetuity
State -Owned
Low/Low/
550
General
Moderate
Sources:
1. U.S. Department of Housing and Urban Development.
2. California Housing Partnership Corporation.
3. City of Costa Mesa., 2013
HOUSING ELEMENT • PAGE HOU-32
CITY OF COSTA MESA
At Risk Status
Twenty-five properties with 156 affordable units have density bonus agreements
that were executed mostly in the late 1990s. These agreements are expiring
between 2018 and 2020. Among these units, 85 units are for very low income
and 71 are for low -moderate income.
St. John's Manor was refinanced in 2006 to extend the affordability covenant for
55 years and continues to receive project -based Section 8 assistance. The
current Section 8 contract will expire in December 2015.
Another property, Casa Bella, is at risk of converting to market -rate housing or
losing their low income subsidies within the next ten years. Casa Bella was
constructed with a long-term Section 8 contract, which has long expired. The
project is currently maintained as affordable housing using short-term (five-year)
Section 8 contracts that require renewal periodically. At Casa Bella, a total of 75
units are "at -risk" of converting to market rate rents over the next ten-year period.
Specifically, Section 8 contract at Casa Bella is set to expire on September 11,
2015. Casa Bella is considered the highest priority, due to the owner being a for-
profit entity. However, the City imposed a land use restriction on Casa Bella in
exchange for the initial land write down, density increases, parking reductions
and participation in HUD financing. The land use restrictions require Casa Bella
to remain affordable for the length of the mortgage, 40 years. In other words,
Casa Bella is not "at -risk" of converting to market rate through a mortgage
prepayment. The risk with Casa Bella converting to market rate is associated
with the termination of a tenant -based Section 8 contract.
Preservation and Replacement Options
Preservation of at -risk projects can be achieved in a variety of ways, with
adequate funding availability. These include:
♦ Transfer of ownership to nonprofit developers and housing organizations
♦ Providing rental assistance to renters through other funding sources
♦ Purchase affordability covenants
♦ Refinance mortgage revenue bonds
Alternatively, units that are converted to market rate may be replaced with new
assisted multi -family units with specified affordability timeframes.
Transfer of Ownership
Transferring ownership of the affordable units to a nonprofit housing organization
is a viable way to preserve affordable housing for the long term and increases
number of government resources available to the project. The feasibility of this
option depends on the willingness of the owner to sell, funding sources to
actually buy the property, and the existence of a nonprofit organization with
sufficient administrative capacity to manage the property. The City can explore
transfer of ownership options with potential agencies or organizations included in
the State's Department of Housing and Community Development qualified
entities list. The entities will be select from the State's list of qualified entities to
acquire/manage affordable housing.
All at -risk projects are held by private profit -motivated entities. In Costa Mesa the
estimated market value for the 267 affordable units in the at -risk developments is
evaluated in Table HOU-27. The current market value for all affordable at -risk
HOUSING ELEMENT • PAGE HOU-33
Costa Mesa Gene�P
units is estimated to be just under $39 million. The market value is only an
estimate based on general assumptions on unit sizes, building conditions, and
market rents. This analysis is only intended to establish some order of cost
impact and not intended to reflect the actual value of the at -risk properties.
Furthermore, affordable units at density bonus projects represent only a small
portion of the total units at these projects. Transferring ownership of projects in
their entirety to retain a small number of affordable units may not be the most
cost-effective approach. Another approach is to replenish the City's affordable
housing inventory with new construction and encourage the use of density
bonus.
Table HOU-27: Market Value of At -Risk Projects
Units
1 -Bedroom
DevelopmentsTotal Units in At -Risk Rental
180
2 -Bedroom
69
3 -Bedroom
18
Annual Operating Costs
($1,048,500)
Gross Annual Income
$4,600,440
Net Annual Income
$3,551,340
Market Value
$39,071,340
1. Median Rent: 0 -bed = $955; 1 -bed = $1,250; 2 -bed = $1,630; 3 -bed = $2,550
2. Average Size: Studio = 500 sf; 1 -bed = 700 sf; 2 -bed = 900 sf; 3 -bed = 1200 sf
3. 5% vacancy rate and annual operating expenses per square foot = $5.00
4. Market value = Annual net project income " multiplication factor
5. Multiplication factor for a building in moderate condition = 11
Rental Assistance
State, local, or other funding sources can be used to provide rental subsidies to
maintain the affordability of at -risk projects. These subsidies can be structured to
mirror the Section 8 program, whereby the subsidy covers the cost of the unit
above what is determined to be affordable for the tenant's household income
(including a utility allowance) up to the fair market value of the apartment. The
total estimated annual subsidy to maintain the 267 at -risk units is estimated at
about $1,166,700.
Table HOU-28: Rent Subsidies Required to Preserve At -Risk Rental Units
Unit Size Total Units
Fair Very
Market
Rents
Low Affordable
Income Monthly
i(30%
Cost Cost
AMI) Utilities
of
Per Unit
Subsidy
Total Annual
Subsidy
Very Low Income
1-bd/2-Person
155
$1,294
$38,550
$964
$73
$403
$62,504
2-bd/3-Person
36
$1,621
$43,350
$1,084
$91
$628
$22,617
3-bd/4-Person
5
$2,268
$48,150
$1,204
$130
$1,194
$5,971
Low Income
1-bd/2-Person
35
$1,294
$61,650
$964
$73
($174)
---
2-bd/3-Person
33
$1,621
$69,350
$1,084
$91
($22)
---
3-bd/4-Person
13
$2,268
$77,050
$1,204
$130
$472
$6,133
Total
231
$1,166,697
HOUSING ELEMENT • PAGE HOU-34
CITY OF COSTA MESA
Incentives to Purchase Affordability Covenants
Another option to preserve the affordability of at -risk projects is to provide an
incentive package to the owners to maintain the projects as low-income housing.
Incentives could include writing down the interest rate on the remaining loan
balance and/or supplementing the Section 8 subsidy received to market levels.
The feasibility of this option depends on whether the complexes require
rehabilitation or are too highly leveraged. By providing lump -sum financial
incentives or on-going subsidies in rents or reduced mortgage interest rates to
the owner, the City can ensure that some or all of the units remain affordable.
Construction of Replacement Units
The construction of new low-income housing can be a means to replace at -risk
units. The cost of developing new housing depends on a variety of factors
including density, size of units, construction quality and type, location, and land
cost. Assuming a development cost of $200,000 for a multi -family rental unit, the
cost of replacing all 267 affordable at -risk units would be approximately $53.4
million.
Preservation Resources
Efforts by the City to retain low-income housing must be able to draw upon two
basic types of preservation resources: organizational and financial. Qualified,
non-profit entities need to be made aware of the future possibilities of units
becoming "at risk." Groups with whom the City has an on-going association are
the logical entities for future participation. The City can explore transfer of
ownership options with potential agencies or organizations included in the State's
Department of Housing and Community Development qualified entities list.
The following is a list of potential financial resources considered a part of the
City's overall financial plan to deal with retaining affordable units.
HOME Program: The City of Costa Mesa receives approximately
$360,000 in HOME funds annually. HOME funds are used primarily for
rehabilitation loans and grants, and acquisition/rehabilitation of rental
units.
Community Development Block Grant (CDBG) Funds: The City of
Costa Mesa receives approximately $1 million in CDBG funds annually.
CDBG funds are used primarily for infrastructure and public facility
improvements, public services, fair housing services, and code
enforcement.
Costa Mesa Housing Authority: The Costa Mesa Housing Authority
was formed in 2012 to serve as the city agency responsible for the
provision of quality, affordable housing in Costa Mesa after the
dissolution of the Redevelopment Agency. The Housing Authority can
carry out a broad range of activities such as acquiring and leasing land,
acquiring and rehabilitating existing units, clearing sites for development,
financing the construction of new or rehabilitated units, constructing
public improvements to facilitate housing, owning and operating units,
and operating programs and services that promote home ownership and
responsible tenancy for persons of low income.
HOUSING ELEMENT • PAGE HOU-35
Costa Mesa Gene�P
Orange County Housing Authority (OCHA): The Orange County
Housing Authority administers two programs: Conventional Public
Housing and Section 8 Housing Choice Voucher Program. The
Conventional Public Housing Program includes housing developments
that are owned and managed by OCHA. The Section 8 Housing Choice
Voucher Program is a tenant -based rental subsidy. As of March 2013,
OCHA served 442 Costa Mesa households through Section 8 vouchers.
Among the households assisted, 122 were families, 168 were
households with disabled members, and 152 were elderly households.
5.6 HOUSING CONSTRAINTS ANALYSIS
A number of factors can serve to constrain the development, preservation, and
improvement of housing in Costa Mesa.
GOVERNMENTAL CONSTRAINTS
Actions or policies of numerous governmental agencies, whether involved directly or
indirectly in the housing market, can impact the ability of the private sector to
provide adequate housing to meet consumer demands. One example is the impact
of federal monetary policies. Federal budgeting and funding policies of a variety of
departments can either stimulate or depress various aspects of the housing
industry. Local or state government compliance or the enactment of sanctions
(sewer connection or growth moratoriums) for noncompliance with the federal Clean
Air and Water Pollutions Control Acts can impact all types of development.
State agencies and local government compliance with state statutes can complicate
the development of housing. The California Environmental Quality Act and sections
of the Government Code relating to rezoning and General Plan amendment
procedures can also act to prolong the review and approval of development
proposals by local governments. In many instances, compliance with these
mandates establishes time constraints that cannot be altered by local governments.
Local governments also exercise a number of regulatory and approval powers that
directly impact residential development within their respective jurisdictional
boundaries. These powers establish the location, intensity, and type of units that
may or may not be developed. The City's General Plan, zoning regulations, project
review and approval procedures, development and processing fees, utility
infrastructure, public service capabilities, and development attitudes all play
important roles in determining the cost and availability of housing opportunities in
Costa Mesa.
I Wn1►1111 b9 ode] ►111:N �+
General Plan and Zoning
The Costa Mesa General Plan establishes the location and amount of land that will
be allocated to residential development, and the intensity of development (in terms
of unit densities and total number of units) that will be permitted. While nearly all
components or elements of the General Plan contain goals and policies that
influence residential development, the Land Use Element has the most direct
influence.
HOUSING ELEMENT • PAGE HOU-36
CITY OF COSTA MESA
The Land Use Element (as of October 2012) provides the following residential
designations:
♦ Low Density Residential (up to 8 units per acre)
♦ Medium Density Residential (up to 12 units per acre)
♦ High Density Residential (up to 20 units per acre)
Residential uses may also be permitted in the following nonresidential areas at a
density of no more than 20 units per acre in conjunction with a planned
development except at specific sites:
♦ General Commercial
♦ Commercial Center
♦ Regional Commercial
♦ Urban Center Commercial
♦ Industrial Park
♦ Light Industrial
In implementing the residential land use designations, the R1 zoning district
promotes low-density, detached single-family development. The R2 -MD district
promotes medium -density, multi -family development. The R2 -HD and R3 are
zones intended for high-density multi -family dwelling units.
In addition the Costa Mesa Zoning Code includes several additional zones aimed at
facilitating a variety of residential development throughout the City:
♦ Planned Development Residential - North Costa Mesa (PDR -NCM)
♦ Mixed -Use Overlay (MU)
The PDR -NCM zone allows for densities up to thirty-five (35) dwelling units per
acre. This district is intended to provide for excellence in the design of residential
projects. Site design could include single -and multiple -family residential
developments containing any type or mixture of housing units, either attached or
detached, such as clustered development, townhouses, patio houses, detached
houses, duplexes, garden apartments, high rise apartments or common interest
developments. Complementary non-residential uses could also be included in the
planned development.
The MU district may overlay the R2 -MD, R2 -HD, R3, CL, C1, C2, MG, PDR -HD,
PDR -MD districts, and is intended to allow development of residential and
nonresidential uses as mixed, integrated projects. This overlay district is intended to
be applied to the City's zoning map in conjunction with the adoption of an urban
plan for the designated area. The urban plan is a regulating plan that shall define
the unique characteristics of the overlay area, include a matrix of permitted,
conditionally permitted, and prohibited uses and provide development standards. A
master plan is required to activate the overlay zone.
HOUSING ELEMENT • PAGE HOU-37
Costa Mesa Gene�P
DEVELOPMENT STANDARDS
General Residential Development Standards
Generally, minimum lot sizes, minimum open space, maximum height and
parking requirements are similar for residential zones R1 through R3, except for
a larger minimum lot size in the R2 -MD zone and do not create negative impacts
for the community and developers (Table HOU-29).
In addition, the City has several planned development zoning districts including
the PDR -NCM, which is a special high-density district in North Costa Mesa. The
planned development districts provide incentives for innovative designs that
incorporate small lots, zero lot lines, residential clustering, mixed densities and
mixed income types. The Medium, High and North Costa Mesa PDR zones also
allow high-rise apartments and common interest developments (Table HOU-30).
Furthermore, common interest development allows small detached and attached
units a higher densities.
Table HOU-29: Development Standards by Residential Zone
Development
Standard
PDR -LD PDR -MD PDR -HD PDR -NCM PDC PDl
Max. Density
8 12 20 35 20
Max. Site
Not Applicable
Min. Lot Size
6,000 sq. ft.
12,000 sq. ft. 12,000 sq. ft.
12,000 sq. ft.
Max. Density
1 du/6,000 sq. ft.
1 du/3,630 sq. ft. 1 du/3,000 sq. ft.
1 du/2,178 sq. ft.
Min. Open Space'
40%
40% 40%
40%
Max. Height
2 stories/27 ft.
2 stories/27 ft. 2 stories/27 ft.
2 stories/27 ft.
Front Setback
20 ft.
20 ft. 20 ft.
20 ft.
Side Setback
5 ft.
5 ft. 5 ft.
5 ft.
Rear Setback
10-20 ft.
10-20 ft. 10-20 ft.
10-15 ft.
Source: City of Costa Mesa Zoning Code, 2012.
Notes:
1. Open space is an area of land reserved for recreational purposes and does not include driveways, parking areas, and buildings.
2. Accessory structures that do not exceed 6.5 feet in height in the R1 zone or 15 feet in height in the R2 zones may have a zero
side and a zero rear yard setback.
Table HOU-30: Development Standards by Planned Development District
Development
Standard
PDR -LD PDR -MD PDR -HD PDR -NCM PDC PDl
Max. Density
8 12 20 35 20
Max. Site
Not Applicable
30-35%
50%
Coverage
Perimeter Open
Space
20 ft. abutting all public right-of-ways (may be reduced in PDC and PDR -NCM zones)
Open Space
45% of total site area, inclusive of
42% of total site area, inclusive
Not Applicable
perimeter open sace
of perimeter open ace
Source: City of Costa Mesa Zoning Code, 2012.
HOUSING ELEMENT • PAGE HOU-38
CITY OF COSTA MESA
Parking requirements are shown in Table HOU-31. Residential uses are
required to provide garaged or covered parking, open parking, and guest parking.
While these parking standards appear high, they do not impact areas where
future residential development are targeted (e.g. in the City's four Urban Plan
areas as discussed later). Furthermore, affordable and senior housing
development meeting the State Density Bonus Law would be eligible to use the
required parking standards under State law .4
Table HOU-31: Parking Standards by Residential Zone
Parking Standard
R1
1112-IMID, R2 -HD, R3, PDR -LD, PDR -MID, PDR -HD, PDR -NC
Garage Parking
2 spaces
Not Applicable
Bachelor: 1 space
Covered Parking
Not Applicable
1 Bedrooms: 1 space
(Garage or Carport)
2 Bedrooms: 1 space
3+ Bedrooms: 1 space
Lot without
garage access
from alley:
Bachelor: 0.5 space
Open Parking'
2 spaces
1 Bedrooms: 1 space
Lot with garage
2 Bedrooms: 1.5 spaces
access from
3+ Bedrooms: 2.5 spaces
alley:
1 space
Bachelor: 0.5 space
Guest Parking2
Not Applicable
1 Bedrooms: 0.5 space
2 Bedrooms: 0.5 space
3+ Bedrooms: 0.5 space
Second Unit
2 spaces
Not Applicable
Source: City of Costa Mesa Zoning Ordinance, 2012
Notes:
1. Open parking for multi -family residential can be reduced by 0.25 space per unit for (1) one bedroom and larger units if the
covered parking is provided within either a carport or a parking structure.
2. Guest parking is calculated separately from covered and open parking. Guest parking may be reduced to 0.25 space per
unit for each unit above fifty (50) in a large residential development.
3. In R1 zones, required open parking may be provided in a garage or on a minimum 19 -foot long, individual driveway leading
to a garage.
Urban Plans
As the City of Costa Mesa approaches build -out and with 50.8 percent of the
housing stock built before 1970, the identification and preservation of resources
becomes essential with respect to long-term planning. Through coordinated
efforts the City has developed several neighborhood improvement strategies and
urban plans that identify the opportunities available within neighborhoods. These
urban plans were created to establish overlay zones in specific areas of the City,
with flexible development standards to encourage mixed-use developments.
Flexibility in development standards include:
Reduced setbacks;
Reduced parking requirements;
4 State Density Bonus On -Site Parking Standards: Studio to one -bedroom: one parking space; two- to three-
bedroom: two parking spaces; four or more bedrooms: 2.5 parking spaces. These requirements include guest
and handicapped parking.
HOUSING ELEMENT • PAGE HOU-39
Costa Mesa Gene�P
♦ Reduced open space;
♦ Tandem parking permitted;
♦ Increased lot coverage; and
♦ Increased height limits.
South Bristol Entertainment and Cultural Arts (SoBECA) Urban Plan: The
SoBECA urban plan area covers 39 acres located south of Baker Street, east of
the 73 d freeway, and north of the intersection of the SR -73 and SR -55 freeways.
The emphasis of the plan is to improve the visual appearance of this area and
provide a live/work environment. The plan includes a focus on mixed-use
development comprised of residential uses and commercial uses. This plan was
adopted on April 4, 2006.
Westside Implementation Plan: The Westside Implementation Plan was
adopted on April 4, 2006 and includes the Mesa West Residential Ownership
Urban Plan, 19 West Urban Plan, and Mesa West Bluffs Ownership Urban Plan.
The Westside Implementation Plan encompasses an area of 238 acres and
includes several multi -family neighborhoods primarily south of West 19th Street.
Additional areas north of West 19th Street include portions of neighborhoods that
are near Wilson Elementary School, Pomona Elementary School, and Rea
Center.
The following generally summarizes the intended residential uses in the Urban
Plan areas:
♦ Mesa West Residential Ownership Urban Plan: The Plan encourages
owner -occupied housing by permitting rebuilding to the existing number
of units on site even if that exceeds the current zoning allowance. Height
limit is three stories and 45 feet.
19 West Plan: This Plan encourages live/work and residential loft units
in mixed-use developments (FAR 1.25); height limit for residential
component is four stories and 60 feet.
♦ Mesa West Bluffs: This Plan encourages live/work (FAR 1.25) and
residential common interest developments (13 units per acre); height
limit is four stories and 60 feet.
The creation of the mixed-use overlay zone allows new mixed-use and
residential development opportunities. The Urban Plans serve as economic
incentive plans that provide guidance to property owners and developers for
mixed-use development.
Intensity refers to the magnitude of vehicle traffic activity generated by a
development. Density refers to the number of dwelling units per acre of land. It
is important to note that the density and intensity of mixed-use development are
limited by Floor -Area -Ratio (FAR) limits and circulation system capacity. Both
the FAR and vehicle trip generation work in concert to ensure that new
residential and mixed-use development, as measured by average daily trip
generation, do not exceed the capacity of the circulation system.
In the Urban Plan areas, density and intensity are therefore not exclusively
measured by the number of dwelling units per acre of land. In the SoBECA, 19
West, and Mesa West Bluffs Urban Plans, a maximum 1.0 FAR (and up to 1.25
FAR in some cases) may be allowed provided that the proposed project will not
result in adverse, unmitigable impacts to the City's circulation system. The
HOUSING ELEMENT • PAGE HOU-40
CITY OF COSTA MESA
circulation system must continue to operate consistent with adopted Master Plan
of Highways and General Plan goals/policies/objectives.
Specific Plans
Newport Boulevard Specific Plan: This specific plan represents a long-term
vision for the eastside of Newport Boulevard impacted by the 55 Freeway
extension (between 19th Street and Mesa Drive). The Specific Plan includes
issue identification, land use options, development standards and an
implementation program. The intent of the Plan includes working with existing
businesses to provide for a prosperous environment and encouraging marginal
commercial uses to redevelop to residential and less intensive commercial uses.
North Costa Mesa Specific Plan: This specific plan provides a comprehensive
review and analysis of the larger remaining pieces of vacant land and major land
holdings in the northern portion of the City. This plan provides opportunities for
mixed use projects and provisions for affordable housing in selected areas.
Density Bonus Program
Consistent with State law, the City of Costa Mesa offers density bonus incentives
for senior housing projects and projects that reserve a portion of the units as
housing affordable to very low, low, and moderate income households. To
qualify for a density bonus and concessions or other incentives, the developer of
a proposed housing project of at least five units must provide housing units
affordable to very low, low or moderate income households, housing for seniors,
donate land, and/or construct a child care facility. The review of an application
for a density bonus and concession or incentive request is processed as a
planning application and goes through the same processes as a typical planning
application. The City monitors the use of density bonus via its annual reporting
process.
VARIETY OF HOUSING TYPES
General Provisions
Generally, single-family homes (including manufactured homes) are permitted in
all residential zones. Multi -family units are also permitted in all residential zones,
except in R1 zone. Through a Conditional Use Permit (CUP) process, mobile
home parks are permitted in all residential zones, except in R1. Second units are
permitted in the R1 zone.
In addition, residential uses are also allowed in the Planned Development -
Commercial (PDC) and Planned Development -Industrial (PDI) zones. The City's
Planned Development zones encourage a more efficient use of land through
innovative planning incentives.
HOUSING ELEMENT • PAGE HOU-41
Costa Mesa Gene�P
Table HOU-32: Permitted Residential Uses by Residential Zone
Second Units
A second dwelling unit established in conjunction with and subordinate to a
primary dwelling unit. The second unit may be attached to the primary dwelling
unit or located in a detached accessory building on the same lot. It may also be
referred to as an accessory apartment, granny unit, granny flat, or in-law
apartment. Due to the small lot sizes and built out character of the City,
opportunities for second units are limited. Nevertheless, second units offer
affordable housing opportunities for lower and moderate income households. The
passage of AB 1866 (effective July 2003) requires cities to use a ministerial
process to consider accessory dwelling units in an effort to facilitate the
production of affordable housing statewide. Accessory units should be permitted
in all residential zones where a primary single family unit already exists.
The City updated its second unit ordinance in 2011 allowing the construction of
accessory second units in the R-1 zone and has adopted conditions under which
second dwelling units may be permitted. These conditions are consistent with
State law and include:
♦ a minimum lot size of 8,500 square feet
♦ Unit size not to exceed 1,200 square feet if detached from the primary
dwelling unit, not to exceed 30 percent of the existing living area of the
primary dwelling unit if attached to the primary dwelling unit
♦ Two open parking spaces shall be provided for the second unit
HOUSING ELEMENT • PAGE HOU-42
R1
R2-
R2-
R3
PDR_
PDR-
PDR-
PDR-
PDC
PDI
MID
HD
LID
IVID
HID
NCIVI
Single-Family/Manufactured
P
P
P
P
P
P
P
P
P
P
Multi -Family
■
P
P
P
P
P
P
P
P
P
Mobile Home Parks
■
CUP
CUP
CUP
CUP
CUP
CUP
CUP
CUP
CUP
Second Units
P
■
■
■
■
■
■
■
■
■
Live/Work Units
■
■
■
■
P.
P*
P*
P*
P*
P*
Residential Care Facility
P
P
P
P
P
P
P
P
P
P
6 or fewer
Residential Services Facility
(6 or fewer, not State
P
P
P
P
P
P
P
P
P
P
licensed
Residential Care Facility
0
C
C
C
■
C
C
C
C
C
7 or more
Residential Services Facility
(7 or more, not State
■
C
C
C
■
C
C
C
C
C
licensed
Referral Facility
■
C
C
C
■
CUP
CUP
■
■
■
Emergency Shelters
■
■
■
■
■
■
■
■
■
P
P = Permitted; ■ = Prohibited; CUP = Conditional Use Permit, P* = Master Plan Required
Notes:
1. Certain residential uses are also permitted or conditionally permitted in nonresidential zones. Refer to City Zoning
Ordinance for details.
2. Transitional housing and supportive housing are considered
Source: City of Costa Mesa Zoning Ordinance, 2012.
Second Units
A second dwelling unit established in conjunction with and subordinate to a
primary dwelling unit. The second unit may be attached to the primary dwelling
unit or located in a detached accessory building on the same lot. It may also be
referred to as an accessory apartment, granny unit, granny flat, or in-law
apartment. Due to the small lot sizes and built out character of the City,
opportunities for second units are limited. Nevertheless, second units offer
affordable housing opportunities for lower and moderate income households. The
passage of AB 1866 (effective July 2003) requires cities to use a ministerial
process to consider accessory dwelling units in an effort to facilitate the
production of affordable housing statewide. Accessory units should be permitted
in all residential zones where a primary single family unit already exists.
The City updated its second unit ordinance in 2011 allowing the construction of
accessory second units in the R-1 zone and has adopted conditions under which
second dwelling units may be permitted. These conditions are consistent with
State law and include:
♦ a minimum lot size of 8,500 square feet
♦ Unit size not to exceed 1,200 square feet if detached from the primary
dwelling unit, not to exceed 30 percent of the existing living area of the
primary dwelling unit if attached to the primary dwelling unit
♦ Two open parking spaces shall be provided for the second unit
HOUSING ELEMENT • PAGE HOU-42
CITY OF COSTA MESA
Special Needs Housing
The City of Costa Mesa offers a range of housing options for persons with
special needs.
Residential Care Facility: A residential facility is licensed by the State where
care, services, or treatment is provided to persons living in a community
residential setting. Residential care facilities that serve six or fewer persons are
treated as regular residential use and are permitted where residential uses of the
same types are permitted. Residential care facilities for seven or more persons
are conditionally permitted in R2 -MD, R2 -HD, R3, PDR -MD, PDR -HD, PDR -
NCM, PDC, and PDI zones.
Currently, 71 State -licensed community care facilities with a total capacity of 767
beds are operating in Costa Mesa, including:5
♦ Adult Residential Care Facilities: 10 facilities totaling 89 beds
♦ Elderly Residential Care Facilities: 44 facilities totaling 491 beds
♦ Group Homes: 10 facilities totaling 69 beds
♦ Small Family Homes: 3 facilities totaling 16 beds
♦ Adult Day Care Facilities: 2 facilities totaling 90 beds
♦ Social Rehabilitation Facilities: 2 facilities totaling 12 beds
Residential Services Facility: The Costa Mesa Municipal Code defines a
residential services facility as a residential facility, other than a residential care
facility, boardinghouse, or single housekeeping unit, where the operator provides
to the residents personal services, in addition to housing, including, but not
limited to, protection, supervision, assistance, guidance, training, therapy, or
other nonmedical care. An example of this type of facility is a sober living
program. Residential services facilities that serve six or fewer persons are
permitted where residential uses of the same types are permitted. Residential
services facilities for seven or more persons are conditionally permitted in R2 -
MD, R2 -HD, R3, PDR -MD, PDR -HD, PDR -NCM, PDC, and PDI zones. There
are a number of unlicensed facilities in the City, which number is unknown since
a license is not required and they are permitted by right.
a State Department of Social Services, http://www.ccld.ca.gov/docs/ccld search/ccld search.aspx, accessed on
November 1, 2012.
• Adult Residential Facilities (ARF) are facilities of any capacity that provide 24-hour non-medical care for
adults ages 18 through 59, who are unable to provide for their own daily needs. Adults may be physically
handicapped, developmentally disabled, and/or mentally disabled.
■ Residential Care Facilities for the Elderly (RCFE) provide care, supervision and assistance with activities of
daily living, such as bathing and grooming. They may also provide incidental medical services under special
care plans.
■ Group Homes are facilities of any capacity and provide 24-hour non-medical care and supervision to
children in a structured environment. Group Homes provide social, psychological, and behavioral programs
for troubled youths.
■ Small Family Homes (SFH) provide 24 -hour -a -day care in the licensee's family residence for six or fewer
children who are mentally disabled, developmentally disabled, or physically handicapped, and who require
special care and supervision as a result of such disabilities.
■ Adult Day Care Facilities are community-based facilities or programs that provide care to persons 18 years
of age or older in need of personal services, supervision, or assistance essential for sustaining the activities
of daily living or for the protection of these individuals on less than a 24-hour basis.
■ Social Rehabilitation Facilities are any facilities that provide 24 -hour -a -day non-medical care and supervision
in a group setting to adults recovering from mental illnesses, who temporarily need assistance, guidance, or
counseling.
HOUSING ELEMENT • PAGE HOU-43
Costa Mesa Gene�P
Referral Facility: A residential care facility or a residential services facility where
one or more person's residency in the facility is pursuant to a court order or a
directive from an agency in the criminal justice system. Referral facility does not
include any residential care facility containing six or fewer residents that is
required to be treated as a regular residential use by State law.
Referral facilities are conditionally permitted R2 -MD, R2 -HD, R3, PDR -MD, and
PDR -HD zones, subject to the following conditions:
No referral facility may be located within 500 feet of property that is as
zoned as R-1 or PDR -LD, or within 500 feet of a school, park, place of
worship, or licensed day care facility.
A referral facility must have a manager on-site, 24 hours every day to
ensure the orderly operation of the facility and its compliance with all
applicable laws, regulations, and conditions.
♦ No referral facility shall admit a resident who has been convicted of any
crime involving physical force against a person, illegal possession of a
weapon, possession, or use of a weapon in the commission of a crime,
or a felony involving a controlled substance.
Transitional Housing: As defined by Section 50675.2(h) of Health and Safety
Code, transitional housing means buildings configured as rental housing
developments, but operated under program requirements that call for the
termination of assistance and recirculation of the assisted unit to another eligible
program recipient at some predetermined future point in time, which shall be no
less than six months. The goal of transitional housing is to provide the support
needed for participants to move into permanent housing or permanent supportive
housing.
In December 2012, the City amended the Zoning Code to define transitional
housing meeting the definition as outlined in the Health and Safety Code Section
50675.2 as a regular residential use and be permitted in same manner as other
similar uses in the same zones.
Supportive Housing: As defined by Section 50675.14(b) of Health and Safety
Code, supportive housing is housing with no limit on length of stay, that is
occupied by the target population as defined in subdivision (d) of Section 53260,
and that is linked to onsite or offsite services that assist the supportive housing
resident in retaining the housing, improving his or her health status, and
maximizing his or her ability to live and, when possible, work in the community.
Typically, supportive housing is permanent housing.
In December 2012, the City amended the Zoning Code to define supportive
housing meeting the definition as outlined in the Health and Safety Code Section
50675.14 as a regular residential use and be permitted in same manner as other
similar uses in the same zones.
Single Room Occupancy (SRO): SROs are allowed in the commercial C1 and
C2 zones with a Conditional Use Permit.
Emergency Shelters: Senate Bill No. 2 amended Sections 65582, 65583, and
65589.5 of the Government Code relating to local planning. This bill added
emergency shelters to these provisions and required that the Housing Element
identify zones in the City where emergency shelters are allowed as a permitted
use without a Conditional Use Permit.
HOUSING ELEMENT • PAGE HOU-44
CITY OF COSTA MESA
State law defines an emergency shelter as a means of housing with minimal
supportive services for homeless persons that is limited to occupancy of six
months or less by a homeless person. No individual or household may be
denied emergency shelter because of an inability to pay. Special needs housing
include boarding houses, residential care facilities, and residential service
facilities.
Currently, the Municipal Code allows small boarding houses and residential care
facilities for six or fewer persons as permitted uses in all residential zones (R1,
R2 -MD, R2 -HD, and R3). For example, a small boarding house is a dwelling
designed or used to accommodate a maximum of three guests, where
guestrooms are provided in exchange for an agreed payment of a fixed amount
of money or other compensation based on the period of occupancy. Special
needs housing may be provided in large boardinghouses, and these facilities
require a conditional use permit in the R2 -MD, R2 -HD, and R3 zones.
In 2012, City's Municipal Code was amended to provide for emergency homeless
shelters as a permitted use in the (PDI) Planned Development Industrial) zone as
required by Senate Bill 2 (SB 2). Properties zoned PDI are located north of 405
Freeway and on the east side close to John Wayne Airport and contain over 115
acres of land. Both areas are primarily located along major transportation
corridors (Harbor Boulevard and Red Hill Avenue), which make them suitable for
emergency shelters. The PDI zones are appropriate zoning districts for
accommodating emergency shelters because they offer easy access to public
transportation and services. The PDI zones include single tenant buildings as
well as office condominium complexes with smaller tenant spaces that could
potentially be converted to emergency shelters. Because of high land values in
Orange County, the industrial zoned areas in Costa Mesa no longer contain
heavy industries; existing uses generally consist of small manufacturing facilities,
office uses and ancillary commercial and service uses. In addition, uses that
require larger tenant spaces in a comparable commercial setting such as
religious and physical fitness studios (yoga and pilate classes) find these areas
suitable because of more affordable rents and proximity to major roadways.
Overall, 115 acres of land in the City are zoned PDI. With even one percent of
these properties converted to emergency shelters, there is potential for a
development capacity of 1.2 acres of land. Given that the shelters can be
accommodated at a high density, the development of emergency shelters as
permitted uses in the PDI zone could satisfy the majority of the annual demand
for homeless persons in the City. Emergency shelters can be accommodated
with reuse of underutilized properties. Existing buildings may also be converted
to accommodate emergency shelters.
The Zoning Code establishes the following standards for emergency shelters :6
The maximum length of stay shall not exceed 120 days in a 365 -day
period.
♦ Each shelter may have a maximum of thirty (30) beds.
In developing the standards for emergency shelters, the City reviewed standards for similar uses. Industrial uses
require three spaces per 1,000 square feet, commercial uses require four spaces per 1,000 square feet, and
motels require one parking space per room. As an example, an 80 -bed facility would be equivalent in size to an
8,000 -square foot industrial or commercial building, or a 40 -room motel; all would require similar or greater
number of parking spaces. These development standards were also established after consulting the standards
established by five similar and nearby jurisdictions in Orange County — Newport Beach; Huntington Beach;
Irvine; Garden Grove; and Brea. The standards adopted by Costa Mesa are the same or similar to those
adopted by Huntington Beach, Irvine, and Brea.
HOUSING ELEMENT • PAGE HOU-45
Costa Mesa Gene�P
♦ Off-site parking shall be provided at a parking rate of one parking space
per four beds and one space per employee.
♦ Stays at the Emergency Shelter facility shall be limited between the
hours of 5:00 p.m. and 8:00 a.m.
♦ Nonoperational and unregistered vehicles shall not be kept on site.
Towing shall be the responsibility of the shelter operator.
♦ Each emergency shelter shall provide an interior and exterior waiting
area adequate to accommodate waiting clients and to prevent queuing
into the public right-of-way. An exterior waiting area shall be physically
separated and visually screened from the public right-of-way.
♦ The emergency shelter facility shall provide an on-site resident manager
on-site at all times.
♦ A minimum distance of 300 feet shall be maintained from another
emergency shelter. The distance of separation shall be measured in a
straight line between the property lines of each use without regard to
intervening structures or objects.
♦ The shelter operator shall provide minimum exterior lighting in
compliance with City's Security requirements. In addition, the operator
shall regularly patrol the area surrounding the shelter site during hours
that the shelter is in operation to ensure that homeless persons who
have been denied access are not congregating in the neighborhood.
♦ Alcohol and narcotics use and consumption are prohibited within the
facility and on the property.
♦ An operations plan shall be submitted for review and approval by the
Development Services Director and Police Chief prior to operation of the
Emergency Shelter. The plan shall include minimum provisions related to
on-site security and safety, staff training, loitering control, client eligibility,
counseling services, and indoor and outdoor management of the facility.
Constraints on Housing for Persons with Disabilities
The City of Costa Mesa recognizes the importance of addressing the housing
needs of persons with disabilities. This section review potential governmental
constraints to the development and improvement of housing for persons with
disabilities.
Definition of Family: The City's Zoning Ordinance defines "family" as "one or
more persons occupying one dwelling unit and living together as a single
housekeeping unit." This definition is accommodating to different household
types including unrelated persons living together. This definition would not
constrain the development and rehabilitation of housing for persons with
disabilities.
Zoning and Land Use: The Zoning Ordinance provides for a range of housing
options for persons with special needs, including persons with disabilities.
Specifically, the Zoning Ordinance provides for the permitting of residential care
facilities, residential services facilities, and referral facilities (see respective
discussions above). Such flexible standards have resulted in a large number of
HOUSING ELEMENT • PAGE HOU-46
CITY OF COSTA MESA
residential facilities for persons with disabilities in the City. The Fairview
Developmental Center (FDC) is one of the largest residential facilities for
developmentally disabled persons in the State. As of September 2012, the FDC
had 369 residents and employed a staff of 1,500.'
The state -operated Fairview Developmental Center (formerly Fairview State
Hospital) provides affordable housing for hospital employees and transitional
patients/clients. A long-term lease extending through 2039 was executed
between the State of California and the City of Costa Mesa. Entitlements have
been established in the late 1970s to allow construction of the Harbor Village
apartment housing project in two phases.
Phase One of the Harbor Village multi -family residential project included a 144 -
unit affordable apartment project developed on the Fairview State Hospital
property for employee and patient/client housing. This project was approved on
December 7, 1981 and became an accessory residential use to the hospital.
Phase Two involved the construction of an additional 406 apartments, for a total
of 550 units. All of the 550 units in Harbor Village will remain affordable through
2039. With a 50 -year lease, the long-term affordability of this large apartment
community continues to provide housing to numerous low to moderate income
FDC employees and patients, which include developmentally disabled persons.
The City of Costa Mesa, in its Zoning Ordinance specifically requires the number
of handicapped parking spaces to conform to Title 24 of the California Code. All
multi -family complexes are required to provide handicapped parking spaces,
depending on the size of the development. The City is flexible and would work
with the developers of special needs housing and would reduce parking
requirements if the applicant can demonstrate a reduced need for parking.
Reasonable Accommodation: The Fair Housing Act requires that cities and
counties provide reasonable accommodation to rules, policies, practices, and
procedures where such accommodation may be necessary to afford individuals
with disabilities equal opportunity to housing. The City adopted a reasonable
accommodation ordinance in 2000. A 2009 Zoning Code amendment
establishes a procedure to process reasonable accommodation requests as a
"minor modification" process (Title 13, Article 15 of the Zoning Code). This article
describes the City's policy to provide reasonable accommodation in accordance
with federal and state Fair Housing Acts (42 USC Section 3600 et seq. and
Government code Section 12900 et seq.) for persons with disabilities seeking fair
access to housing in the application of the City's zoning laws. The procedure
applies to requests for relief from the Zoning Code provisions, regulations,
policies, or conditions, and applies to both new construction and modifications.
The minor modification process allows City staff to approve these requests
administratively. For example, an application for a minor modification is reviewed
by the Planning Division with no public notice or public hearing, nor any
application fees. Requests can be made by the disabled persons occupying the
unit, or owner/operator of housing for persons with disabilities.
Costa Mesa continually reviews its ordinances, policies, and practices for
compliance with fair housing laws. Costa Mesa broadened and revised definition
of "family" to include State and federal definitions relating to unrelated adults. The
' State Department of Developmental Services, http://www.dds.cahwnet.gov/Fairview/Fairview.cfm, accessed
November 1, 2012.
HOUSING ELEMENT • PAGE HOU-47
Costa Mesa Gene�P
City's Municipal Code defines family as being "One (1) or more persons
occupying one (1) dwelling unit and living together as a single housekeeping
unit." This is a broad definition and does not constrain or limit development of
residential care facilities or other types of specialized housing for unrelated
individuals. The Residential Care Facility and Residential Service Facility are
defined as follows:
Residential Care Facility: A residential facility licensed by the state
where care, services, or treatment is provided to persons living in a
community residential setting.
♦ Residential Service Facility: A residential facility, other than a
residential care facility, boardinghouse, or single housekeeping unit,
where the operator provides to the residents personal services, in
addition to housing, including, but not limited to, protection, supervision,
assistance, guidance, training, therapy, or other nonmedical care.
Both uses, if serving six or fewer persons are permitted in all residential districts
including single family detached low density districts. Residential care and
service facilities serving seven or more persons are subject to a conditional use
permit.
LOCAL ENTITLEMENT PROCESSING AND FEES
Two aspects of local government have been criticized as placing undue burdens
on the private sector's ability to build affordable housing. These are: (1) the fees
or other exactions required of developers to obtain project approval and, (2) the
time delays caused by the review and approval process. Critics contend that
lengthy review periods increase financial and carrying costs and that fees and
exactions increase expenses. These costs are in part passed onto the
prospective homebuyer in the form of higher purchase prices or rents.
Processing Procedures
The time required to process a project varies tremendously from one project to
another and is directly related to the size and complexity of the proposal and the
number of actions or approvals needed to complete the process. Table HOU-33
identifies the most common steps in the entitlement process. It should be noted that
each project does not necessarily have to complete each step in the process (i.e.,
small-scale projects consistent with General Plan and zoning designations do not
generally require Environmental Impact Reports (EIRs), General Plan Amendments,
Rezones, or Variances). Also, certain review and approval procedures may run
concurrently. Since most EIRs are prepared in response to a General Plan
Amendment request, these two actions are often processed simultaneously. Costa
Mesa also encourages the joint processing of related applications for a single
project. As an example, a rezone petition for a Planned Development Zone may be
reviewed in conjunction with the required Development Plan, a tentative tract map
and any necessary variances. Such procedures save time, money and effort for
both the public and private sector.
Generally, the process begins when the applicant submits their planning application,
fees, and required number of plans. A Development Review committee determines
if the plans are accurate and complete. This review generally takes about 30 days.
If the plans are accurate and complete, the application is accepted for processing, a
Project Planner is assigned to the project, and a public hearing is scheduled. An
Office Specialist then prepares draft publications and notices and distributes the file
HOUSING ELEMENT • PAGE HOU-48
CITY OF COSTA MESA
and plans to the Project Planner who then reviews and analyzes the plans and
application. The Project Planner prepares a staff report, and at the same time, the
Office Specialist mails, posts, and publishes public notices. When staff reports are
completed, they are distributed and posted to the website prior to the public hearing.
The Planning Commission conducts a public hearing and approves, conditionally
approves, or denies the application. The process from the time that the Project
Planner is assigned to the project to the time that it goes to the Planning
Commission is typically six to eight weeks.
Table HOU-33: Development Review and Approval Procedures
Action/Request
Processing Time
Comments
Environmental Impact Report
Processing and review time limits as specified by
(Fee: Consultant contract
6-9 Months
State law. Certified by decision making body.
estimate plus 10%)
Negative Declaration
Processing time can be extended if the project has a
(Fee: Consultant contract
8-10 Weeks
longer review and approval period. Adopted by
estimate plus 10%)
decision making body.
Gov. Code Section 65358 limits the number of times
General Plan Amendment
4-6 Months
any element of the General Plan can be amended
(Fee: $3,560)
each calendar year. Decided by the City Council
upon recommendation by Planning Commission.
Certain procedures and time limits established by
Rezone
90 days
Gov. Code Sections 65854-65857. Decided by the
(Fee: $1,910)
City Council upon recommendation by the Planning
Commission.
Parcel Map
(Fee: $1,445)
90 days
Planning Commission / Final Review Authority
Tentative Tract Map
(Fee: $1,445)
90 days
Planning Commission / Final Review Authority
Variance
(Fee: $1,685)
90 days
Planning Commission / Final Review Authority
Administrative Adjustment
(Fee: $1,035)
3-4 Weeks
Zoning Administrator / Final Review Authority
Development Review
3 Weeks
Staff level review
(Fee: $915)
Note: Fee reflects 2009 fee schedule; fee review is conducted on an annual basis.
Design Review: For projects that require a Design Review, the conditions for
project approval are determined on a case-by-case basis under the following criteria
for consideration:
♦ Ensure adequate light, air, privacy and open space for each dwelling
unit.
♦ Minimize traffic congestion and avoid overloading of public services and
utilities.
♦ Protect residential neighborhoods from excessive noise, illumination,
unsightliness, odor, smoke and other objectionable influences.
♦ Locate development which retains the scale and character of existing
residential neighborhoods and facilitates the upgrade of declining and
mixed -density residential neighborhoods.
HOUSING ELEMENT • PAGE HOU-49
Costa Mesa Gene�P
Planning and Development Fees
A brief survey shows that the planning application fees charged by the City of
Costa Mesa are generally lower than surrounding cities (Table HOU-34). For
example, Costa Mesa imposed a fee of $3,560 for a General Plan Amendment
which is significantly lower than fees charged by Huntington Beach, Fountain
Valley, and the deposits required by Newport Beach and Irvine. Only Santa Ana
had a lower fee for General Plan Amendment. The City of Irvine charges the
processing of a General Plan Amendment hourly at $128 per hour and Newport
Beach at a rate of $155 per hour. Based on the deposit required, it is estimated
that this cost is higher than the fixed fee charged by Costa Mesa.
Furthermore, the City provides fee credits for existing development against new
development. The developer is required to pay certain fees for only the net
increase of residential units on site. Fee credits are available for park fees,
sanitation district fees, and traffic impact fees. Park fees and traffic impact fees
can also be deferred until the issuance of Certificates of Occupancy. The City is
also in the process of re-evaluating the park fees, potentially reducing the fee.
Table HOU-34: Planning Application Fees — Surrounding Jurisdictions
Jurisdiction
General Plan Amendment
Zone
Change
Parcel
Map
Variance
$1,685
Costa Mesa
$4,560
$1,910
$1,445
Huntington Beach
$17,998 (minor)
$8,437
$4,068
$2,446
$32,948 major
$1,155+
Fountain Valley
$9,265
$4,795
reproduction
$2,960
costs
$166/H r.
$166/H r.
$166/H r.
Newport Beach
($7,500 initial deposit)
($7,500 initial
$3,164
($5,000 initial
deposit)
deposit
Santa Ana
$2,830
$2,260
$1,060
$2,265
Irvine
$128/Hr.
$128/Hr.
($12000 initial
$128/Hr. ($4,000
$128/Hr.
($1,500 initial
($12,000 initial deposit)
,
deposit)
initial deposit)
I
deposit
Source: Planning Departments of Respective Jurisdictions, 2012
Fees, land dedications, or improvements are also required in most instances to
provide an adequate supply of public park land and to provide necessary public
improvements (streets, sewers, and storm drains) to support the new development.
While such costs are charged to the developer, most, if not all, additional costs are
passed to the ultimate product consumer in the form of higher prices or rents. The
significance of the necessary public works improvements in determining final
costs varies greatly from project to project. The improvements are dependent on
the amount of existing improvements and nature of the project.
Costa Mesa also assesses a traffic impact fee on an incremental basis, as shown
in Table HOU-35. Various governmental agencies also charge fees depending
on the service and the location of the project. A summary of these fees are
presented in Table HOU-36. Based on the City's schedules of fees, the
development of a typical multi -family apartment complex is estimated to require
$29,581 in fees per unit. This is a nine -percent increase from the estimate made in
2007, indicating an annual increase of approximately 1.8 percent in fees.
HOUSING ELEMENT • PAGE HOU-50
CITY OF COSTA MESA
Table HOU-35: Traffic Impact Fee Schedule
Average D.Impact
Activity
0 to 25 ADT
$0 / ADT
26 to 50 ADT
$50 / ADT
51 to 75 ADT
$75 / ADT
76 to 100 ADT
$100 / ADT
101 ADT and More
$181/ADT
Source: City of Costa Mesa, 2012.
Table HOU-36: Development Fees Schedule
Agency
Activity
Rate
Division
Building Plan Check
Based on Valuation of
Improvements
Building Division
Building/plumbing/mechanical/electrical
permits
Based on Valuation of
Improvements
Planning Division
Letter of Confirmation (flood zone, zoning)
$40
Planning Division
Parkland Impact Fee
Single -Family
Multifamily
$13,572/du
$13,829/du
Engineering Division
Drainage Fee
$6,283.00-11,309.00/acre
Engineering Division
Final map check fee
$90/hour
Engineering Division
Off-site plan check
$90/hour
Engineering Division
Street improvement plan check fee
$90/hour
Engineering Division
Deposit/bond — off site work
2x the amount of the cost estimate
of off-site work
Engineering Division
Construction Access permit
$230
Engineering Division
Curb and Gutter permit
$365
Engineering Division
Driveway approach
$425
Engineering Division
Sidewalk permit
$380
Engineering Division
Wheelchair ramp
$365
Engineering Division
Public right-of-way inspection
$125/hour
San Joaquin Hills Trans.
Corridor Agency
Single-family residential
Multifamily residential
$3,698/du
$2,158/du
Newport Mesa Unified
School District
Residential
$1.84/sf
Santa Ana Unified School
District
Residential
Residential exclusively for senior citizens
$2.63/sf of assessable space
$0.42/sf of assessable s ace
Source: City of Costa Mesa, 2012.
ON -/OFF-SITE IMPROVEMENT STANDARDS
Costs associated with site improvements are an important component of new
residential development costs. Site improvements costs are applied to provide
sanitary sewer and water service to a project, to make necessary transportation
improvements, and to provide other infrastructure to the project. Improvements
required may include grading, surfacing, sidewalks, curbs, gutters, culverts,
bridges, storm drains, water mains and service connections to the property line
with cutoff valves, sanitary sewers and such other structures or improvements as
may be required by ordinance for the general use of the lot owners in the
HOUSING ELEMENT • PAGE HOU-51
Costa Mesa Gene�P
subdivision and for local neighborhood traffic and drainage needs. In addition,
the City may require the payment for various offsite improvements as part of
project mitigation measures (e.g., payment towards an offsite traffic signal).
Developers of new residential projects are also required to construct all onsite
streets, sidewalks, curb, gutter, and affected portions of offsite arterials. The cost
for site improvements varies from project to project. Even for infill projects where
infrastructure may already be available, there is often a need to upgrade and/or
expand the existing improvements to serve new residential development. Curbs,
gutters, and drainage facilities direct storm and runoff water out of residential
developments.
City roadways are required to be paved. Pavement creates an all-weather
roadway, facilitates roadway drainage, and reduces dust. It also produces a high
speed circulation system and facilitates relatively safe traffic movement.
Roadways are classified by the City according to traffic needs. They are as
follows:
♦ Major Arterial — 6 -Lane Divided Roadway (104 feet)
♦ Primary Arterial — 4 -Lane Divided Roadway (80 feet)
♦ Secondary Arterial — 4 -Lane Undivided Roadway (72 feet)
♦ Collector Arterial — 2 -Lane Undivided Roadway (60 feet)
Arterials and collectors are designated on the General Plan according to existing
and projected needs. Developers are responsible for the development of
roadways associated with the residential project. As the City's circulation
system is already well established, street improvements required relate primarily
to traffic mitigation measures, such as installation of stoplights or stop signs, curb
cuts for ingress/egress, installation of turn lanes, or bike paths. Significant
dedication of land for new streets is not anticipated for most residential
developments in the City.
Development of and connection to municipal water and sewer services are
required as a condition of approving tract maps. Water service is necessary for a
constant supply of potable water. Sewer services are necessary for the sanitary
disposal of wastewater. These off-site requirements, which increase costs of
development, also allow for the development of much higher residential
densities.
The City's on- and off-site improvement requirements are typical for urban
development in a highly developed community. While these improvements add
to the cost of housing, they do not constrain housing development as these
improvements are similarly required in all surrounding communities.
BUILDING CODES AND ENFORCEMENT
Compliance with Building Code standards is necessary to protect the health,
safety and welfare of the citizens. The City of Costa Mesa currently uses the
California 2010 Building Code (effective January 1, 2011) and no local
amendments have been made to the Code that might diminish the ability to
accommodate housing development in general or housing for persons with
disabilities in particular.
HOUSING ELEMENT • PAGE HOU-52
CITY OF COSTA MESA
DISSOLUTION OF REDEVELOPMENT
Redevelopment tax increment financing was once the most significant resource
the City of Costa Mesa had in facilitating the provision of affordable housing in
the community. With the dissolution of redevelopment in California as of January
2012, the City's ability to provide affordable housing has been seriously
compromised. Without the low and moderate income housing funds from tax
increments, the City has limited financial resources to provide direct gap
financing or provide assistance through land write-downs or land banking
activities.
MARKET CONSTRAINTS
The private market influences the selling and rental prices of all types of housing.
While actions within the public sector play important parts in determining the cost of
housing, the private sector affects the residential markets through such mechanisms
as supply costs (i.e., land, construction, financing) and value of consumer
preference.
AVAILABILITY OF FINANCING
A constraint affecting housing costs is the cyclical nature of the housing industry.
Housing production can vary widely from year to year with periods of above-
average production followed by periods of below-average production. Fluctuations
are common in most industries but appear to be more volatile in the homebuilding
sector because of susceptibility of the industry to changes in federal fiscal and
monetary policies.
One significant component to overall housing cost is financing. After decades of
slight fluctuations in the prime interest rate, the 1980s saw a rise in interest rates
that peaked at approximately 18.8 percent in 1982. As the decade closed and
the economy weakened, the prevailing interest rate was around ten percent. The
decade of the 1990s saw interest rates drop dramatically, fluctuating between six
and eight percent. During the past five years interest rates dropped substantially
and currently, interest rates are around three to four percent. The substantial
drop in the cost of fixed rate mortgages and the widespread use of adjustable
rate mortgages have substantially decreased the effects of financing on the
purchase of a home.
However, as creative financing (e.g., zero downpayment, short-term fixed rate,
and interest only loans) allowed an increased number of households to enter
homeownership, it also led to escalations in home prices and increased number
of households buying beyond their financial means. Since late 2006,
foreclosures have become an issue impacting many households in Southern
California. In October 2012, mortgage default filings hit their lowest point since
first-quarter 2007, due in large part to a stronger economy and housing market
and more short sales, a real estate information service reported. According to
Dataquick, between 2011 and 2012 notices of default decreased by 32 percent .8
COST OF LAND
The cost of residential land has a direct impact on the cost of a new housing unit
and is, therefore, a potential market constraint. The higher the land costs, the
higher the price of a new unit.
8 http://www.DQNews.com, CA Foreclosures, accessed November 1, 2012.
HOUSING ELEMENT • PAGE HOU-53
Costa Mesa Gene�P
The City of Costa Mesa is almost built out. Available vacant residential land will
become increasingly scarce over time, especially when considering the lack of
annexation opportunities. The cost of residential vacant land will continue to
increase in the City of Costa Mesa and will play a role in the prices passed on to
the consumer. The scarce supply of vacant land will influence residential
intensification and conversion in the future.
According to listings on Homes.com, there was only one residentially zoned
vacant lot for sale in the City of Costa Mesa in 2012. The 8,570 square foot lot
was for sale for $599,000 equating to $70.31 per square foot. However, the
property has been listed for sale for several months.
COST OF CONSTRUCTION
The costs of building materials are a major cost associated with constructing a
new housing unit. A reduction in amenities and the quality of building materials
(above a minimum acceptability for health, safety, and adequate performance)
could result in lower sales prices. In addition, prefabricated, factory -built housing
may provide for lower priced housing by reducing construction and labor costs.
Another factor related to construction costs is the number of units built at one
time. As the number increases, overall costs generally decrease, as builders are
able to take advantage of the benefits of economies of scale. This type of cost
reduction is of particular benefit when density bonuses are used for the provision
of affordable housing.
Product design and consumer expectations also influence the types and styles of
units being constructed in this area. Today's new homes are quite different than
those produced during the 1960s. Numerous interior and exterior design
features (larger master bedroom suites, microwave ovens, trash compactors,
dishwashers, wet bars, decorative roofing materials, exterior trim, and archi-
tectural style) make it difficult to make direct comparisons in costs over the years.
In a highly competitive and sophisticated market such as Southern California,
many consumers consider these "extra touches" as necessities when buying a
new home. While the basic shelter or "no frills" house has met with varying
degrees of consumer acceptance, the high costs of homeownership may lead to
a return to less complicated designs.
CONDOMINIUM CONVERSION
As the willingness to pay rent decreases, the private market can push apartment
owners toward conversion to condominiums units. A condominium conversion
can be a constraint on the maintenance of affordable housing and especially
impact rental units that may serve the lower income segments of the community.
Recent legislation has sought to curb the effects of condominium conversions on
the maintenance of housing.
The City of Costa Mesa manages condominium conversions or residential
common interest development conversions through the City Zoning Code. The
City recognizes condominium conversion serve as an important source of
moderately priced homeownership opportunities compared to new construction.
Due to the increase in conversion activities over the past few years and concern
over the quality of converted units, the City Council adopted a new Condominium
Conversion Ordinance on September 4, 2007. The ordinance removed the
critical rental vacancy rate as a condition for permitting conversion but included
specific development standards to ensure the quality of the converted units. In
HOUSING ELEMENT • PAGE HOU-54
CITY OF COSTA MESA
addition, requirements are established for life safety, plumbing, security,
refurbishing and restoration, condition of equipment and appliances, and onsite
utilities. However, condominium conversion is not expected to impact the rental
market significantly over the next few years due to the current credit market
crisis.
5.7 OPPORTUNITIES FOR NEW RESIDENTIAL DEVELOPMENT
REGIONAL HOUSING NEEDS
State Housing Element law requires that a local jurisdiction accommodate a
share of the region's projected housing needs for the planning period. This
share, called the Regional Housing Needs Allocation (RHNA), is important
because State law mandates that jurisdictions provide sufficient land to
accommodate a variety of housing opportunities for all economic segments of the
community. Compliance with this requirement is measured by the jurisdiction's
ability in providing adequate land to accommodate the RHNA.
The Southern California Association of Governments (SCAG), as the regional
planning agency, is responsible for allocating the RHNA to individual jurisdictions
within the six -county region, including the County of Orange.9 The Orange
County Council of Governments (OCCOG), a subregional planning organization,
worked closely with SCAG to develop the RHNA for Orange County jurisdictions.
ADEQUATE SITES COMMITMENT FROM PRIOR RHNA (2008-2013)
AB 1233 amended the State Housing Element law to promote the effective and
timely implementation of local housing elements. If a jurisdiction fails to
implement programs in its Housing Element to identify adequate sites or fails to
adopt an adequate Housing Element, this bill requires local governments to zone
or rezone adequate sites by the first year of the new planning period. The
rezoning of sites is intended to address any portion of the Regional Housing
Needs Allocation (RHNA) that was not met because the jurisdiction failed to
identify or make available adequate sites in the previous planning period.
For the 2008-2014 Housing Element, the City of Costa Mesa was allocated a
RHNA of 1,682 units as follows:
♦ Extremely LowNery Low -Income (up to 50 percent of AMI): 353 units
(21.0 percent)
♦ Low -Income (51 to 80 percent of AMI): 289 units (17.2 percent)
♦ Moderate -Income (81 to 120 percent of AMI): 330 units (19.6 percent)
♦ Above Moderate -Income (more than 120 percent of AMI): 710 units (42.2
percent)
The 2008-2014 Housing Element includes a sites inventory with a capacity for
4,155 units: 407 very low-income units; 291 low-income units; 1,424 moderate
income units; and 2,051 above moderate -income units. To reach this capacity,
the City committed to two specific actions:
Southern California Association of Governments (SCAG) covers a six -county region, including Los Angeles,
Orange, Riverside, San Bernardino, Ventura, and Imperial.
HOUSING ELEMENT • PAGE HOU-55
Costa Mesa Gene�P
♦ Extend affordability control on 160 units at Bethel Towers for 55 years
(88 very -low income units and 72 low-income units). In exchange, the
City would provide finance assistance for rehabilitating the property.
♦ Amend the General Plan and rezone 13.6 acres of land of the Fairview
Developmental Center site by the end of 2009 to High -Density
Residential to allow development at a density of 30 units per acre. The
2008 Housing Element assumed 320 total units on this site, with 170
units set aside as lower income housing (85 very -low income and 85 low-
income units).
Status Update on Adequate Sites Commitments
Due to various reasons, the owner of Bethel Towers withdrew participation in the
City's program to extend the affordability covenant in exchange for financial
assistance. While in 2012 Bethel Towers, through tax-exempt revenue bonds,
extended its affordability covenant for 55 years, this extension was not completed
within the allowable timeframe under State law, or utilized any City funding to
receive RHNA credits. The State Department of Developmental Services also
withdrew its application for residential development on the Fairview
Developmental Center.
Combined these two actions would have accounted for 330 lower income units
(173 very -low income and 157 low-income units) and 150 above moderate -
income units. The 2008-2013 Housing Element demonstrated an excess
capacity of over 1,340 units for above moderate income households, more than
adequate to compensate for the 150 above moderate -income units due to the
withdrawal of the Fairview Developmental Center project. However, the City
would need to demonstrate its ability to accommodate the 330 lower income
units (173 very -low income and 157 low-income units).
Replacement Sites for the RHNA Shortfall
Sakioka Lot 2: Located within the North Costa Mesa Specific Plan, Sakioka Lot
2 is a 33 -acre site that is designated for future commercial and residential
development. The site was designated Urban Center Commercial by the
General Plan and zoned PDC (Planned Development Commercial). The General
Plan/Specific Plan originally established a maximum FAR of 0.50 for retail and
0.50 for office uses, and a density limit of 20 units per acre for residential uses.
This vacant lot was included in the 2008-2014 Housing Element for being able to
accommodate moderate income housing at an average density of 16 units per
acre and for a total of 528 units. The 2008-2014 Housing Element demonstrated
a capacity for 1,424 moderate income units, compared to a RHNA of 330
moderate income units.
The original FAR and density limits were found to have unintended effects of
excluding different types of mixed use development. In November 2011, the City
amended the General Plan and Specific Plan to remove the office and retail FAR
limits and to increase the maximum density of residential mixed use development
to 28 units per acre at Sakioka Lot 2. Assuming an average density of 22.4 units
per acre (at 80 percent of the maximum allowable density), up to 739 units can
be accommodated on this site.
Urban Plan Areas: The 19 West Urban Plan area consists of 103 acres of
industrial, commercial, and residential uses. The plan area is located in the
HOUSING ELEMENT • PAGE HOU-56
CITY OF COSTA MESA
Westside, generally along 19th Street, Superior Boulevard, and southeast of
Victoria Street and Placentia Avenue. The mixed-use overlay zone allows
horizontal and vertical mixed-use development pursuant to an approved Master
Plan. Live/work developments are conditional uses in this plan area.
Approximately 29 acres of commercially -zoned property within the 19 West
mixed-use overlay district could potentially serve as future adequate sites for
affordable housing, at residential densities of up to 30 units per acre as part of a
mixed-use development. The 19 West Urban Plan area is identified as a
revitalization area. Existing uses on these parcels include marginal commercial
uses with aging structures, bars, mini -markets, and neighborhood retail centers
which do not fully realize the development potential in the mixed-use overlay
zone. Mixed-use development along a major arterial such as West 19th Street
could become dynamic, commercial destinations.
In the 2008-2014 Housing Element, only a handful of underutilized sites were
included in the sites inventory to fulfill the previous RHNA. The 19 West Urban
Plan contains more opportunities than identified in the 2008-2014 Housing
Element. Table HOU-38 identifies a list of underutilized sites that were not
included in the 2008-2014 Housing Element. No development has occurred on
these sites due to the housing market conditions. These properties are available
for lower income housing through the Mixed Use Overlay.
Mixed Use Overlay can be applied to these parcels for mixed use developments
up to 30 units per acre. The allowable FAR in the 19 West Urban Plan area is
1.0. The selected parcels all have existing FAR of less than 0.30, indicating
significant potential for intensification on these properties. The parcels identified
in Table HOU-38 can potentially be redeveloped as mixed-use developments,
with a capacity for 75 additional units.
With the General Plan and Specific Plan amendments for Sakioka Lot 2 and
additional underutilized sites in the 19 West Urban Plan area, the City has more
than replaced the 330 -unit shortfall in sites resulted from the withdrawn Fairview
Development Center project and delayed preservation of Bethel Tower.
Table HOU-37: Underutilized Sites in 19 West Urban Plan Area
HOUSING ELEMENT • PAGE HOU-57
Potential
APN
AddressSite
Zoning
(@ average
24 du/ac)
15
424-202-01 745 W. 19th St. 0.63
Restaurant and bar
with large service
General
parking under
1
424-202-02
719 W.
th
19
St.
1.29
C1
Commercial
common ownership
and with a
31
combined existing
FAR of 0.23
424-211-02
647 W.
19th
St.
0.60
C1
General
Restaurant, small
14
Commercial
office building, and
printing services
with a combined
2 424-211-03 657 W. 19th St. 0.36
C1
Office
g
424-211-04
659 W.
19th
St.
0.27
C1
General
existing FAR of
6
Commercial
0.24.
Total Capacity:
75
HOUSING ELEMENT • PAGE HOU-57
Costa Mesa Gene�P
Affordable Housing Densities
State Housing Element law has established a default density of 30 units per acre
as being feasible for facilitating housing for lower income households in
urbanized communities within a metropolitan area. The table below lists many
affordable housing projects in Orange County and north San Diego County that
have been approved or constructed at less than 25 units per acre. Affordable
apartment projects approved or built in recent years include, Ability First
Apartments (12.0 du/ac), Avocado Court (16.2 du/ac), Brighton Place (18.9
du/ac), Bonterra Apartment Homes (19.0 du/ac), Parkview Apartments (20.7
du/ac), The Arbor at Woodbury (22.0 du/ac), Westlake Village (22.6 du/ac), and
Springbrook Grove (24.9 du/ac). Based on these numerous examples in the
region, development of affordable housing in Costa Mesa at a maximum density
of 28 units per acre (average density of 22.4 units per acre) at the Sakioka Lot 2
is feasible.
Table HOU-38: Affordable Housing with Densities of 25 Units/Acre or Less
HOUSING ELEMENT • PAGE HOU-58
Built/
Affordable
Project
Project/Location
Acquired
Units
Density
AffordabilityYear
Little Hollywood / San Juan Capistrano
2000/2009
24
4.7
50 and 80% AMI
Habitat for Humanity / San Juan Capistrano
2010
27
10.4
50 and 80% AMI
Ability First Apartments / Irvine
2008
24
12.0
30% AMI
Casa de Esperanza / Stanton
2003
10
14.5
30% AMI
Avocado Court / Escondido
Under
36
16.2
30, 40, 50, and 60%
Construction
AMI
Brighton Place / Poway
2012
77
18.9
30, 35, 50, and
040,
60% AMI
Bonterra Apartment Homes / Brea
2012
94
19.0
Unknown
Mendocino at Talega / San Clemente
2003
186
20.0
50 and 60% AMI
Parkview Apartments / San Marcos
Approved
84
20.7
30, 40, 50, and 60%
AMI
Windrow Apartments / Irvine
2006
96
21.0
30 and 50% AMI
Laguna Canyon / Irvine
2006
120
21.0
30 and 50% AMI
Escalones Nuevos / San Clemente
2002
6
21.8
50% AMI
Bellecour Way / Lake Forest
2002-2003
6
22.0
80 and 120% AMI
The Arbor at Woodbury / Irvine
2009
90
22.0
Unknown
Westlake Village / San Marcos
2011-2012
49
22.6
35, 45, 50, and 60%
AMI
Montecito Vista Apartments / Irvine
2006
162
23.0
30,50 and 60% AMI
Springbrook Grove / Fallbrook
2010
44
24.9
35 and 45% AMI
Sources: Orange County Housing & Community Services Department, 2008; City of San Juan Capistrano, 2013; Jamboree
Housing, 2013; Keyser Marston Associates, 2012.
Note: North San Diego County projects are from the report "County of San Diego Housing Element Update, Housing Resources"
prepared by Keyser Marston Associates, December 7, 2012.
HOUSING ELEMENT • PAGE HOU-58
CITY OF COSTA MESA
RHNA FOR 2014-2021 PLANNING PERIOD
For the 2013-2021 Housing Element, the RHNA covers a planning period from
January 1, 2014 through October 31, 2021. The RHNA is distributed by income
category. For the 2014-2021 RHNA period, the City of Costa Mesa has been
allocated a RHNA of only two units as follows:
♦ Extremely Low/Very Low -Income (up to 50 percent of AMI): one unit (50
percent)
♦ Low -Income (51 to 80 percent of AMI): one unit (50 percent)
The City must ensure the availability of residential sites at adequate densities
and appropriate development standards to accommodate these two units.
As demonstrated in Table HOU-37 above, the City has identified underutilized
sites in the 19 West Urban Plan area with the capacity to accommodate 75 units.
Furthermore, Sakioka Lot 2 has to potential to accommodate 739 units, more
than adequate to accommodate the new RHNA of two units.
Development potential is also available at the "Argotech" site. This 9.1 -acre site
located at 671 West 17th Street has a General Plan designation of Light Industrial
and is zoned MG (General Industrial). Located within the Mesa West Bluffs
Urban Plan area, the site can accommodate residential uses under the current
overlay zoning, which allows residential development at 13 units per acre or 20
units per acre if live/work housing is proposed.
This large industrial site contains multiple buildings (office and manufacturing)
and has not been in full operation for many years, with subleases to multiple
users. Prior to the economic downturn, the site was in the market for sale.
Currently, there is new development interest for this site.
Figure HOU-1: ArgoTech Site
HOUSING ELEMENT • PAGE HOU-59
Costa Mesa Gene�P
ENVIRONMENTAL CONSTRAINTS
Based on Flood Insurance Rate Maps (last updated December 3, 2009),
there are no residential properties located in flood hazard areas in City of
Costa Mesa. All residentially zoned properties are within Zone X (either
areas outside the 0.2 percent annual chance floodplain or areas of 0.2
percent annual chance flood with one percent annual chance with
average depth of less than one foot or with drainage areas less than 1
square mile). This is also applicable to Sakioka Lot 2 (14850 Sunflower
Ave.) zoned Planned Development Commercial proposed with residential
uses of up to 28 du/acre.
The Urban Plan areas are urbanized areas with existing development on
the majority of the properties. Future development will involve recycling
of existing uses and will be subject to CEQA Guidelines. No major
environmental constraints exist to preclude residential/mixed use
developments in the Urban Plan areas; however, each development site
will be evaluated during the entitlement process and appropriate
mitigation measures will be required as applicable. Development on the
Sakioka Lot 2 and Argo Tech site may require remediation of hazardous
materials due to agricultural and industrial uses, respectively.
FINANCIAL AND ADMINISTRATIVE RESOURCES
Efforts by the City to provide affordable housing through new construction,
acquisition/rehabilitation, and preservation (of at -risk housing) must be able to
draw upon two types of resources: organizational and financial.
ORGANIZATIONAL RESOURCES
The following agencies are potential organizations with interest, experience, and
capacity in the development and preservation of affordable housing in Orange
County:
♦ Habitat for Humanity of Orange County (Santa Ana)
♦ Orange County Community Housing Corporation (Orange)
♦ Jamboree Housing Corporation (Irvine)
♦ BRIDGE Housing Corporation (San Francisco)
♦ Century Housing Corporation (Culver City)
♦ National Community Renaissance of California (Rancho Cucamonga)
FINANCIAL RESOURCES
The following is a list of potential financial resources considered a part of the
City's overall financial plan to address affordable housing needs.
♦ HOME Program: The City of Costa Mesa receives approximately
$360,000 in HOME funds annually. HOME funds are used primarily for
rehabilitation loans and grants, and acquisition/rehabilitation of rental
units.
HOUSING ELEMENT • PAGE HOU-60
CITY OF COSTA MESA
Community Development Block Grant (CDBG) Funds: The City of
Costa Mesa receives approximately $1 million in CDBG funds annually.
CDBG funds are used primarily for rental and owner housing
rehabilitation activities, infrastructure and public facility improvements,
and public services.
Orange County Housing Authority (OCHA): The Orange County
Housing Authority administers two programs: Conventional Public
Housing and Section 8 Housing Choice Voucher Program. The
Conventional Public Housing Program includes housing developments
that are owned and managed by OCHA. The Section 8 Housing Choice
Voucher Program is a tenant -based rental subsidy. As of March 2013,
442 very low income households in Costa Mesa were receiving rental
assistance.
Redevelopment Agency Tax Increment Funds: The elimination of
redevelopment agencies in the State of California prompted the creation
of the Costa Mesa Housing Authority to serve as the Successor Agency
to the Costa Mesa Redevelopment Agency. The Housing Authority
performs the City's housing functions, administers Recognized
Obligation Payment Schedule (ROPS), liquidates the Redevelopment
Agency's (RDA) assets, and pays off debts. The loss of the Costa Mesa
RDA may significantly impair the production of affordable housing in the
future unless the City can identify an alternate funding source. The status
of obligated funds is unknown at this time. The Housing Authority is
waiting for the State Department of Finance to issue a Finding of
Completion that will indicate whether any obligated funds can be
retained.
ENERGY CONSERVATION, GREEN BUILDINGS, AND
SUSTAINABLE RESOURCES
CITY PROGRAMS
The City of Costa Mesa recognizes the urgent need for regional energy
conservation. Conservation at average consumer level can be accomplished by
reducing the use of energy -consuming items, or by physically modifying existing
structures and land uses. Current state requirements such as Title 24 of the
California Administrative Code, with specifications relating to insulation, glazing,
heating and cooling systems, water heaters, swimming pool heaters, and several
other items require the minimum standards. The City of Costa Mesa has far
exceeded the minimum standards by inclusion of conservation measures in the
City's General Plan Conservation Element, creating zoning districts promoting
urbanized and sustainable development by adoption of urban plans and, in day to
day building permit and construction operation by creation of the Costa Mesa Build
Green Programs. Each of these policies and programs are discussed in detail as
follows.
At the land use and policy level, the General Plan Conservation Element
encourages uses of alternative energy sources and passive and active solar energy
such as:
1) Passive solar energy referring to the design of buildings to take
maximum advantage of the sun for heating and cooling through
HOUSING ELEMENT • PAGE HOU-61
Costa Mesa Gene�P
L
appropriate use of windows, overhangs and other shading devices,
building materials, and landscaping.
2) Active solar energy involving the use of solar collectors and related
plumbing and mechanical facilities to heat water, building interiors, or
swimming pools.
Urban Plans Promote Sustainable Communities and Green Technology
The City of Costa Mesa recognizes that land use policies could have a direct affect
on sustainable development and consequently consumption of energy for
transportation. Concentration of higher density housing and employment centers
along major transportation corridors increases the convenience of public transit and
may encourage reduced use of private automobiles with a corresponding reduction
in vehicular fuel consumption.
In an effort to promote revitalization of older industrial properties and provide more
housing opportunities, the City of Costa Mesa adopted three urban plans as land
use/zoning tools for the west side that promote integrated or mixed-use
developments and offer the opportunity for people to live within walking distance of
employment and/or shopping and services. The urban plans are intended for more
intense land uses compatible with the urban nature of the surroundings.
Build Green
The City's promotes green building techniques through the City website. A
dedicated section of the website provides links to important resources and
educational materials on the benefits of building green. Furthermore, the City offers
a 50 -percent discount on permits for solar panels.
Citywide Landscape Design Ordinance
The City will continue to implement the citywide landscape design ordinance and
water efficient landscape guidelines which encourage use of plant materials
suitable for soil and climate conditions and plant selection that are drought
tolerant plants and require low -flow irrigation systems. The ordinance also
requires landscape maintenance practices which foster long-term water
conservation such as performing routine irrigation system repair and
adjustments, scheduling irrigation based on the California Irrigation Management
Information System, use of moisture -sensing or rain shut-off devices, and
conducting water audits.
COLLABORATIVE EFFORTS
Water and Energy Conservation
The City's water/sewer service provider, Mesa Consolidated Water District,
implements the Ultra -Low Flush Toilet Rebate Program and other water
conservation programs. The district provides monthly newsletters highlighting
water conservation and the current California water crisis. As a public education
service, the Water District has recently planted a Demonstration Garden as an
example and resource to demonstrate reducing outdoor water usage, and
protecting natural resources. The City will continue collaborative efforts with the
water district to promote water conservation and public awareness. A link to
these programs is provided on the City's website. Additionally, in congruence
HOUSING ELEMENT • PAGE HOU-62
5.8
CITY OF COSTA MESA
with Senate Bill 1087 the City will provide a copy of the adopted 2013-2021
Housing Element to Mesa Consolidated Water District within 30 days of adoption.
Southern California Edison (SCE) Conservation Programs
The City will continue to cooperate with SCE for disseminating public information
about SCE energy conservation programs. This information is currently provided
under the City's website.
In addition to the noted efforts by the utility providers, public awareness bulletins
and articles are regularly included in the Costa Mesa Community News as part of
City's effort to encourage energy conservation and to offer information on build
green incentives and programs.
GOALS, POLICIES, AND PROGRAMS
Costa Mesa's housing goals concentrate on five specific aspects of the housing
market. Goals are provided to address each of these issues, and policies are
developed to support and implement each goal. The five priorities are:
♦ Preserving and enhancing existing housing and neighborhoods;
♦ Preserving affordability;
♦ Providing adequate sites;
♦ Providing adequate housing opportunities and accessibility for all segments
of the community; and
♦ Encouraging coordination and cooperation.
FRAMEWORK FOR IMPLEMENTATION
Prior to the development of a program -specific housing strategy, it is necessary
to establish the relative priorities of the identified housing needs and to assess
the nature and extent of the City's existing housing programs.
The process of prioritizing housing needs involves the identification of target
households and neighborhoods as well as a preliminary analysis of the most
appropriate housing programs and/or resources to meet these needs.
TARGET HOUSEHOLDS AND NEIGHBORHOODS
High construction costs, coupled with the diminishing availability of vacant land, limit
the large scale expansion of the housing stock. Preservation and enhancement of
the City's existing neighborhoods is vital to the maintenance of a viable urban
community.
In particular, target neighborhoods have: 1) significant concentrations of low- and
moderate -income persons, or blighted and deteriorated housing; and 2) community
development needs in terms of housing, public facilities, and public improvements.
As such, these neighborhoods should be targeted for housing programs/assistance.
Currently, there are several target neighborhoods identified throughout the
southwest section of the City. Specific Plans have been created to address
these neighborhoods such as the SoBeca Urban Plan, the Westside
HOUSING ELEMENT • PAGE HOU-63
Costa Mesa Gene�P
Implementation Plan, Newport Boulevard Specific Plan, and the North Costa
Mesa Specific Plan, all discussed previously.
GOALS AND POLICIES
GOAL HOU-1:
PRESERVATION AND ENHANCEMENT
It is the goal of the City of Costa Mesa to preserve the availability of existing housing
opportunities and to conserve as well as enhance the quality of existing dwelling
units and residential neighborhoods.
POLICIES HOU-1:
HOU-1.1 Develop standards and/or guidelines for new development with
emphasis on site (including minimum site security lighting) and
building design to minimize vulnerability to criminal activity.
HOU-1.2 Encourage existing stabilized residential neighborhoods, including
but not limited to mobile home parks and manufactured home
parks, from the encroachment of incompatible or potentially
disruptive land uses and/or activities.
HOU-1.3 Actively enforce existing regulations regarding derelict or
abandoned vehicles, outdoor storage, and substandard or illegal
buildings and establish regulations to abate weed -filled yards when
any of the above is deemed to constitute a health, safety or fire
hazard.
HOU-1.4 Establish code enforcement as a high priority and provide
adequate funding and staffing to support code enforcement
programs.
HOU-1.5 Install and upgrade public service facilities (streets, alleys, and
utilities) to encourage increased private market investment in
declining or deteriorating neighborhoods.
HOU-1.6 Continue existing rehabilitation loan and grant programs for low
and moderate -income homeowners as long as funds are available.
HOU-1.7 Minimize the displacement of existing residences due to public
projects.
HOU-1.8 Encourage the development of housing that fulfills specialized
needs.
GOAL HOU-2:
PRESERVING AND EXPANDING AFFORDABLE HOUSING OPPORTUNITIES
It is the goal of the City of Costa Mesa to provide a range of housing choices for all
social and economic segments of the community, including housing for persons with
special needs. This goal can be achieved by implementing the following policies:
HOU-2.1 Encourage concurrent applications (i.e., rezones, tentative tract
maps, conditional use permits, variance requests, etc.) if multiple
HOUSING ELEMENT • PAGE HOU-64
CITY OF COSTA MESA
approvals are required, and if consistent with applicable processing
requirements.
HOU-2.2 Promote the use of State density bonus provisions to encourage
the development of affordable housing for lower and moderate
income households, as well as senior housing.
HOU-2.3 Provide incentive bonus units to encourage the redevelopment of
residential units that are nonconforming in terms of density. The
incentive shall be limited to the multi -family residential land use
designations. The density incentive shall be limited to an increase
of 25 percent above Medium -Density or an increase of 50 percent
above High -Density. In no case shall the resulting number of units
exceed the existing number of units on each site.
HOU-2.4 Encourage developers to employ innovative or alternative
construction methods to reduce housing costs and increase
housing supply.
HOU-2.5 Continue membership in the Orange County Housing Authority to
provide rental assistance to very low income households.
HOU-2.6 Provide clear rules, policies, and procedures, for reasonable
accommodation in order to promote equal access to housing.
Policies and procedures should be ministerial and include but not
be limited to identifying who may request a reasonable
accommodation (i.e., persons with disabilities, family -members,
landlords, etc.), timeframes for decision-making, and provision
for relief from the various land -use, zoning, or building
regulations that may constrain the housing for persons of
disabilities.
HOU-2.7 Monitor the implementation of the City's ordinances, codes,
policies, and procedures to ensure they comply with the
"reasonable accommodation" for disabled provisions and all fair
housing laws.
GOAL HOU-3:
PROVISION OF ADEQUATE SITES
It is the goal of the City of Costa Mesa to provide adequate, suitable sites for
residential use and development or maintenance of a range of housing that varies
sufficiently in terms of cost, design, size, location, and tenure to meet the housing
needs of all segments of the community at a level that can be supported by
infrastructure. This goal can be achieved by adhering to the following policies.
HOU-3.1 Encourage the conversion of existing marginal or vacant motels,
commercial, and/or industrial land to residential, where feasible
and consistent with environmental conditions that are suitable for
new residential development.
HOU-3.2 Provide opportunities for the development of well planned and
designed projects which, through vertical or horizontal integration,
provide for the development of compatible residential, commercial,
industrial, institutional, or public uses within a single project or
neighborhood.
HOUSING ELEMENT • PAGE HOU-65
Costa Mesa Gene�P
HOU-3.3 Cooperate with large employers, the Chamber of Commerce, and
major commercial and industrial developers to identify and
implement programs to balance employment growth with the ability
to provide housing opportunities affordable to the incomes of the
newly created job opportunities.
HOU-3.4 Consider the potential impact on housing opportunities and existing
residential neighborhoods when reviewing rezone petitions
affecting residential properties.
HOU-3.5 Encourage transit -oriented development along transportation
corridors.
GOAL HOU-4:
EQUAL HOUSING OPPORTUNITY
It is the goal of the City of Costa Mesa to ensure that all existing and future housing
opportunities are open and available to all social and economic segments of the
community without discrimination on the basis of race, color, religion, sex, sexual
orientation, disability/medical conditions, national origin or ancestry, marital status,
age, household composition or size, source of income, or any other arbitrary factors.
HOU-4.1 Support the intent and spirit of equal housing opportunities as
expressed in Federal and State fair housing laws.
HOU-4.2 Continue to provide fair housing and counseling services for all
Costa Mesa residents in an effort to remove barriers and promote
access to affordable housing in the City.
HOU-4.3 Encourage programs that address the housing needs of senior
citizens.
HOU-4.4 Encourage and support the construction, maintenance and
preservation of residential developments which will meet the needs
of families and individuals with specialized housing requirements.
HOU-4.5 Encourage and support the construction, maintenance and
preservation of residential developments to meet the needs of the
developmentally disabled.
GOAL HOU-5:
COORDINATION AND COOPERATION
It is the goal of the City of Costa Mesa to coordinate local housing efforts with
appropriate federal, state, regional, and local governments and/or agencies and to
cooperate in the implementation of intergovernmental housing programs to ensure
maximum effectiveness in solving local and regional housing problems.
HOU-5.1 Investigate alternative intergovernmental arrangements and
program options to deal with area -wide housing issues and
problems.
HOUSING ELEMENT • PAGE HOU-66
CITY OF COSTA MESA
IMPLEMENTING PROGRAMS
PRESERVATION AND ENHANCEMENT
1. Owner -Occupied Housing Rehabilitation
This program is designed to assist qualified property owners to improve single-
family properties. The program provides rehabilitation loans (up to $50,000) and
grants (up to $7,000) to assist homeowners improve their primary residences to
correct code violations, address deferred maintenance, and improve neighborhood
aesthetics. Eligible improvements include, but not limited to, health and safety code
items such as plumbing, electrical, roofing, etc. Room addition to correct
overcrowding issues is also an eligible activity under this program. The program
offers deferred payment loans at zero -percent interest that is fully deferred until sale
or refinance of the property. Maximum loan -to -value is 85 percent of the current
market value. The City encourages the participation of seniors, veterans, and the
disabled in this program.
2013-2021 Objectives: Assist 3 households annually for a total of 24 households (8
extremely low income, 8 very low income, and 8 low income)
Funding Sources: HOME
Responsible Agencies: Development Services/Housing and Community
Development Division
2. Mobile Home Rehabilitation
The City encourages the preservation of mobile homes as an affordable housing
resource. Specifically, the City provides financial assistance (up to $10,000) as a
grant to eligible owner -occupants to rehabilitate existing dwelling units.
2013-2021 Objectives: Rehabilitation objectives are included under Program 1,
Neighborhood Improvement.
Funding Sources: CDBG
Responsible Agencies: Development Services Department/Housing and
Community Development Division
3. Go Green
Under the Go Green program, the City offered incentives for green development:
A fee waiver program for remodeling and upgrading existing residential
structures such as installation of solar or tankless water heaters,
replacement of HVAC equipment with Energy efficient units, installation
of cool roofs, and reroofs with Class A assembly. The fee waiver ranges
from $50 for installation of a tankless water heater to $800 for Energy
Star certification of existing structures and could go up to $30,000 for
LEED certification of new construction.
HOUSING ELEMENT • PAGE HOU-67
Costa Mesa Gene�P
2. A rebate program for projects with Green certification (i.e., CA Green
Builder, LEED, and GreenPoint Rated). To promote energy conservation,
the City's Go Green program offers a 100 percent discount on permits for
solar panels.
Due to budget constraints, the City suspended this program in 2009 but
continues to offer a 50 percent discount for permit fees for solar panels.
2013-2021 Objectives: Continue to offer discount on permit fees for solar panels
and promote the program on City website and public counters. Pursue funding to
reinstate the Go Green program.
Funding Sources: General; State and Federal grants as available
Responsible Agencies: Development Services Department/Building Division
PRESERVING AND EXPANDING AFFORDABLE HOUSING OPPORTUNITIES
4. Incentives for Affordable Housing
The City will continue to pursue funding, partner with nonprofits and provide
incentives (such as density bonus and deferred impact fees) to developers that
agree to reserve a portion of the project units for lower income households
(including extremely low income), moderate income households (common interest
developments only), or for seniors and the disabled. The City will also defer
payment of fees for affordable housing projects upon certificate of occupancy.
2013-2021 Objectives: Promote the use of density bonus incentives and deferral
of fees for affordable housing projects, including but not limited to, the Urban Plan
areas and in North Costa Mesa Specific Plan area. Density bonus information is
available on the City's website and at the public counter, and will be provided to
developers of projects in the Urban Plan, North Costa Mesa Specific Plan areas,
and other areas targeted for future residential and transit -oriented developments.
Annually utilize the HOME Community Housing Development Organization (CHDO)
funds to pursue affordable housing projects, especially for permanent affordable
projects that may include accessible units for the disabled. Provide a fee waiver to
projects that include at least ten percent housing affordable to extremely low income
households. Engage the community and stakeholders to explore and establish
additional incentives and funding sources, as appropriate, to promote affordability in
targeted growth areas by 2015 and monitor and revise strategies, as appropriate, to
assure effectiveness as part of the annual progress report.
Funding Sources: HOME CHDO funds, Department/Division budget provided by
General Fund, State Department of Housing and Community Development Funds,
Low Income Housing Tax Credits and CaIHFA
Responsible Agencies: Development Services Department/Planning Division
5. Second Units
Due to the small lot sizes and built out character of the City, opportunities for second
units are limited. Nevertheless, second units offer affordable housing opportunities
for lower and moderate income households. Since 2008, three second units have
been built.
HOUSING ELEMENT • PAGE HOU-68
CITY OF COSTA MESA
2013-2021 Objectives: Promote the use of second units by providing information
on the City's website and at public counters.
Funding Sources: Department/Division budget provided by General Fund
Responsible Agencies: Development Services Department/Planning Division
6. Federal/State Housing Programs
The City will provide technical assistance to developers, nonprofit organizations, or
other qualified private sector interests in the application and development of projects
using Federal and State housing programs/grants.
2013-2021 Objectives: Encourage private sector to utilize available Federal and
State housing programs to increase the supply of extremely low, very low, low and
moderate income housing. If proposed projects are consistent with the vision,
goals, and objectives of the City's General Plan and other planning documents that
guide residential development, the City will provide letters of support for funding
applications. In conjunction with potential affordable housing projects in the City,
the City will pursue affordable housing funds from HCD to leverage local resources.
Annually, the City will contact nonprofit housing developers to explore potential
affordable housing projects and funding possibilities.
Funding Sources: Department/Division budgets provided by General Fund
Responsible Agencies: Development Services Department/Housing and
Community Development Division
7. Rental Housing Assistance
The City will continue to participate in the Orange County Housing Authority's
Housing Choice Vouchers program to provide rent subsidies to very low income
households.
2013-2021 Objectives: Continue to provide assistance to 442 very low income
households in the City. Continue to promote the use of Housing Choice vouchers
by providing program information on City website and at public counters.
Encourage property owners to accept Housing Choice Vouchers.
Funding Sources: HUD Section 8 Housing Choice funds administered by the
Orange County Housing Authority
Responsible Agencies: Orange County Housing Authority and Development
Services Department/Housing and Community Development Division
8. Preservation of At -Risk Housing
Overall, 267 housing units in the City of Costa Mesa are considered at risk of
converting to market -rate housing. Specifically 25 projects with 156 affordable units
are at risk due to the expiring density bonus agreements executed during the
1990s. Two projects — 75 -unit Casa Bella and 36 -unit St. John's Manor — are at risk
due to the potential expiration of the Section 8 contracts.
2013-2021 Objectives: Monitor at -risk status of affordable units. For Casa Bella,
work with HUD and the property owner to extend the Section 8 rent subsidy
contract. Notify tenants of potential risk of conversion at least one year prior to
HOUSING ELEMENT • PAGE HOU-69
Costa Mesa Gene�P
conversion. Provide information regarding HUD's special vouchers set aside for
households losing project -based Section 8 assistance (applicable to Casa Bella
only). Work with property owners and nonprofit housing providers to pursue State
and federal funds for preserving at -risk housing. For density bonus projects, require
property owners to inform the tenants of affordable units at least two years in
advance of the expiration of affordability controls to allow tenants adequate time to
explore other affordable housing options. Work to replenish the City's affordable
housing inventory via the City's Density Bonus ordinance to create new affordable
units.
Funding Sources: State and federal preservation funds
Responsible Agencies: Development Services Department/Housing and
Community Development Division
9. Condominium Conversion
According to the 2010 U.S. Census, the percentage of owner -occupied households
compared to renter households is 43% (owner) and 57% (renter). The City
recognizes the importance of offering affordable homeownership opportunities in
order to promote a balanced and diverse community. The City will revisit its
condominium conversion ordinance to remove potential constraints to conversion.
Specifically, many apartment developments would not be able to meet the City's
current parking and open space requirements. The City will adopt an ordinance to
promote development streamlining and condominium conversion.
2013-2021 Objectives: Adopt condominium conversion ordinance in Zoning Code
in 2014 with the objective of removing constraints to conversion.
Funding Sources: Department/Division budget provided by General Fund
Responsible Agencies: Development Services Department/Planning Division
10. Adaptive Reuse for Multi -Family Housing
To expand housing options in the community, the City may allow, subject to a
Zoning Code Amendment authorized by the City Council, the adaptive reuse of
an existing motel use to a residential use for multi -family housing.
2013-2021 Objectives: Process Zoning Code Amendment in 2014/15 to allow a
discretionary review of motel conversions to multi -family housing.
Funding Sources: Department/Division budget provided by General Fund
Responsible Agencies: Development Services Department/Planning Division
11. Supportive Services for Persons with Special Needs
The City recognizes certain segments of the population require additional
assistance to secure decent housing and supportive services. Special needs
groups in Costa Mesa include: seniors, persons with disabilities (including
developmental disabilities), homeless and at -risk homeless, and low income families
(including large households, female -headed households).
Through the annual action plan process for the CDBG program, the City evaluates
the needs of various special needs groups and allocation CDBG Public Service
dollars accordingly. The City will continue to expend CDBG funds in a manner that
HOUSING ELEMENT • PAGE HOU-70
CITY OF COSTA MESA
addresses local needs and augments the regional continuum of care system in
Orange County.
2013-2021 Objectives: Conduct needs assessment through the annual planning
and performance review processes of the CDBG program. Through the CDBG
Request for Proposal process, annually identify service gaps and prioritize funding
allocations. Provide public service grants to:
♦ Support existing local service providers that assist households that are at
risk of becoming homeless. Assistance may include short-term financial
subsidy to prevent eviction, foreclosure and/or utility termination and
support services such as case management, budgeting/job search
assistance, and food/clothing (160 persons total).
♦ Support existing local service agencies that provide short-term shelter (up
to 3 months) to households that are in immediate need of shelter and
support services. Funding may be focused on but not limited to assisting
households that are escaping domestic violence (40 persons total).
♦ Support existing local service agencies that provide transitional housing (3
to 24 months) to homeless households that are stabilized yet still require
housing, case management, and other life skills in order to become self
sufficient (80 persons total).
♦ Provide financial support to public and nonprofit organizations that provide
direct services to seniors and frail elderly. Services should help seniors and
the frail elderly maintain their independent living situation or ensure they are
provided service that improves quality of life (1,600 seniors total).
♦ Provide financial support to public and nonprofit organizations that provide
direct services to disabled and developmentally disabled. Services will help
clients maintain their independent living situation or ensure they are
provided service that improves quality of life (240 persons total).
Funding Sources: CDBG
Responsible Agencies: Development Services Department/Housing and
Community Development Division
PROVISION OF ADEQUATE SITES
12. Adequate Sites
The City will maintain an inventory of vacant and underutilized sites and provide this
inventory to interested developers. The City will monitor its status of meeting the
Regional Housing Needs Allocation (RHNA) annually and ensure that the City has
adequate sites available to accommodate its RHNA of two units. The City will
promote incentives available for housing, live/work development, and mixed-use
development in its Urban Plan areas.
2013-2021 Objectives: Update inventory of vacant and underutilized sites annually
and provide information to interested developers. Pursue opportunities for transit -
oriented development as part of the City's General Plan update. Annually monitor
the status of the Fairview Developmental Center's intent for the future use of this
site.
HOUSING ELEMENT • PAGE HOU-71
Costa Mesa Gene�P
Funding Sources: Department/Division budget provided by General Fund
Responsible Agencies: Development Services Department/Planning Division
13. Mixed -Use Developments
The City will continue to promote mixed-use development in the Urban Plans and
the North Costa Mesa Specific Plan, and the former Downtown Redevelopment
Plan areas. Specifically the City will maintain a list of opportunity sites and market
these sites to interested developers. The City will respond to market conditions and
offer appropriate incentives through the Mixed Use Overlay zone. Incentives
include:
♦ Reduced parking standards
♦ Reduced open space
♦ Increased densities
♦ Increased height limit
♦ Increased lot coverage
♦ Reduced setbacks
2013-2021 Objectives: Update inventory of opportunity sites annually and make
inventory available to interested developers. Evaluate incentives package annually.
Funding Sources: Department/Division budget provided by General Fund
Responsible Agencies: Development Services Department/Planning Division
14. Annual General Plan Review
The City will continue to monitor the extent of residential, commercial, and industrial
development on an annual basis. Sufficient detail should be provided to monitor
employment growth and housing production to enhance jobs/housing balance in the
City.
2013-2021 Objectives: As part of the City's annual report to State Development of
Housing and Community Development (HCD) for the implementation of the General
Plan (including Housing Element), provide detailed progress in residential,
commercial, and industrial development. As part of this annual review process,
evaluate the effectiveness of the PD Industrial zone in facilitating the development
of emergency shelters.
Funding Sources: Department/Division budget provided by General Fund
Responsible Agencies: Development Services Department/Planning Division
EQUAL HOUSING OPPORTUNITY
15. Fair Housing Assistance
The City contracts with the Fair Housing Foundation to provide fair housing and
tenant/landlord mediation services.
2013-2021 Objectives: Continue to provide fair housing services for all residents of
the City. Promote awareness of fair housing via the City's website and distribute fair
housing brochures at public counters and community locations. Make fair housing
HOUSING ELEMENT • PAGE HOU-72
CITY OF COSTA MESA
brochures available to nonprofit agencies. Recognize April as the "Fair Housing
Month" and promote fair housing events through public service announcements.
Funding Sources: CDBG
Responsible Agencies: Development Services Department/Housing and
Community Development Division; Fair Housing Foundation
CHILD CARE FACILITIES
16. Promotion of Child Care Facilities
The City understands that finding adequate and convenient child care is critical to
maintaining the quality of life for Costa Mesa families. The City currently allows
large family day care facilities of up to 14 children in many residential zones (R1,
R2 -MD, R2 -HD, R3) as permitted uses. Day care facilities of 15 or more children
would require a conditional use permit in all residential and commercial zones, but
are considered as permitted uses in the ARS zone.
2013-2021 Objectives: Continue to apply development incentives pursuant to the
State density bonus law and Costa Mesa Zoning Code to incorporate child care
centers as part of an affordable housing development. Allow all incentives related
to child care centers as afforded by the State density bonus provisions.
Funding Sources: Department/Division budget provided by General Fund
Responsible Agencies: Development Services Department/Planning Division
QUANTIFIED OBJECTIVES SUMMARY
Table HOU-39 summarizes the City of Costa Mesa's quantified objectives with
regard to the construction, rehabilitation and preservation of housing. These
objectives are established based on the City's resources available over the
planning period.
Table HOU-39: Quantified Objectives Summary (2013-2021)
HOUSING ELEMENT • PAGE HOU-73
Low
Very
Low
Low
Moderate
AboveExtremely
Moderate
Construction
RHNA
--- 1
1
---
---
2
Rehabilitation
Owner -Occupied Housing
Rehabilitation (Program 1
8 8
8
-
24
Affordability
Rental Assistance
442
---
---
---
442
(Program 7
Preservation of At -Risk Housing
(Program 8
196
71
---
---
267
HOUSING ELEMENT • PAGE HOU-73
Costa Mesa General Plan
HOUSING ELEMENT • PAGE HOU-74
Costa Mesa Gene�P
Appendix A: Public Participation
A-1: Summary of Public Comments
During the first two public meetings held for the Housing Element, the focus of
the discussion was on the outreach program and how the Housing Element
update schedule should be adjusted so that housing issues can be considered
along with the General Plan update in progress in order to achieve a cohesive
vision for the community. In response to these comments, the City retooled its
public outreach program and schedule for the Housing Element update and
provided additional opportunities for community input.
Key comments received during the outreach process include:
♦ There should be a balance between ownership and rental housing.
♦ Affordable housing efforts should focus on permanent affordable housing.
♦ Preservation of neighborhood quality and housing condition is important.
♦ Affordable housing especially for seniors and disabled is needed.
♦ Housing for the homeless is needed.
♦ The City should reconsider density and location of higher density housing;
high density ownership housing is being used as rental housing.
♦ A concerned is expressed that reduced parking standards, reduced open
space, and increased density would impact quality of life standards for
residents.
♦ The City should consider opportunities for transit -oriented development.
♦ Developmentally disabled population requires special attention regarding
affordable and accessible housing.
♦ The City should reconsider its policy on motel conversion.
♦ Establish a land trust for affordable housing.
♦ Continue to pursue rezoning of the Fairview Developmental Center site for
high density residential development.
HOUSING ELEMENT • PAGE HOU-Al
Costa Mesa Gene�P
June 21, 2013
Chair Jim Fitzpatrick and Planning Commissioner Members
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
RE: Comments on Draft 2014-2021 Housing Element Update (May 2013)
Dear Chair Fitzpatrick and Planning Commission Members:
www.kemedywmthission.org
17701 Cowan Ave., Suite 200
Irvine, CA 92614
949 250 0909
Fax 949 263 0647
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 $20,000 annually in Orange County. Formed in 200I, the Commission has been
successful in partnering and working with jurisdictions in Orange County to create effective
policies that has led to new construction of homes affordable to lower income working families.
The Commission is submitting this letter in support of the Costa Mesa Affordable Housing
Coalition's letter dated June 21, 2013 in regards to the City's 2014-2021 draft Housing Element.
The Commission looks forward to working in partnership with the City to create and implement
effective policies and programs in the City's draft Housing Element that will incentivize the
development of homes affordable to lower income working families. Please keep us updated on
the City's responses to the Coalition's recommendations and on any revisions regarding the draft
Element.
If you have any questions, please free to oontact Cesar Covarrubias at (949) 250-0909 or
cesarc@kennedycommission.org.
Sincerely,
Cesar Covarrubias
Executive Director
cc: Lisa Bates, California Housing and Community Development Department
Christian Abasto, Public Law Center
Kathy Esfahan, Costa Mesa Affordable Housing Coalition
HOUSING ELEMENT • PAGE HOU-A2
Costa Mesa Affordable Housing Coalition
June 21, 2013
CITY OF COSTA MESA
Chair Jim Fitzpatrick and Planning Commissioner Members
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
RE: Comments on Draft 2014-2021 Housing Element Update (May 2013)
Dear Chair Fitzpatrick and Planning Commission Members:
On behalf of the Costa Mesa Affordable Housing Coalition (the Coalition), we thank you for the
opportunity to review and comment on the City of Costa Mesa's 2414-2021 draft Housing
Element. We have reviewed the draft and are submitting this letter to provide public comments.
As the City moves forward with the draft Housing Element update, the Coalition urges the City
to support and create effective policies that incentivize the development of homes affordable to
lower income working families. Although for this new planning period the City has a total
Regional Housing Needs Assessment (RHNA) of two dwelling units for very low- and I nw-
income households, it is important to note that the RHNA is the bare minimum and not a
maximum ceiling for future development in the City. Significantly, the City's draft Housing
Element makes clear that the RHNA does not reflect or address the existing housing needs for
lower income working families and special needs residents living in the City. Given the depth of
these unmet housing needs, we are understandably disappointed at the City's lack of progress in
meeting the corresponding housing production goals set forth in the 2008-2014 Housing
Element.
Mindful of the need for new, effective policies that will lead to the actual development of homes
affordable to lower income working families, the Coalition provides the following
recommendations for the City:
1. Meaningfully engage and collaborate with the Coalition and community stakeholders to
develop effective housing policies and programs that will increase affordable home
opportunities for lower income working households.
2. Prioritize and facilitate the development of new rental homes affordable to lower income
working families, specifically including two- and three- bedroom units for large families.
on city -owned sites (e.g, Senior Center parking lot site).
a. Create Request for Proposals (RFPs) on city -owned sites to leverage the land and
funding to create deeper affordability levels.
HOUSING ELEMENT • PAGE HOU-A3
Costa Mesa General Plan
Chair Fitzpatrick and planning Commissioner Members
June 21, 2013
Page 2 of 3
Provide attractive by -right incentives and concessions of certain development standards
that developers are not otherwise entitled to, in exchange for a dedication of 20% of
homes affordable to extremely low-, very low- and low-income families in the City.
Amend the City's overlay zones (e.g., 19 West Urban Plan Area and North Costa Mesa
Specific Plan) to facilitate the development of affordable homes in arras with existing
commercial and light -industrial uses. Housing Program 4 in the past planning period
(also offered in the current draft Element) promoted density bonus incentives and the
deferral of fees for affordable home developments but it has not effectively produced
rental homes for lower income families in mixed-use designations in the City. To
incentivize the development of affordable homes, residential and mixed-use
developments in the overlay zones should be. allowed by -right if at least 200/a of the
homes constructed are set-aside as affordable for lower income working families,
Commit specific funding or financial resources to facilitate the development of homes
affordable for extremely low-income, very low, and low-income working families.
Examples include:
Leveraging housing funds and resources (e.g,. in -lieu fees or impact fees) on
potential candidate sites (e -g-, Senior Center parking lot) for lower income homes
that will help increase the development's competitiveness when applying for
Low -Income Housing Tax Credits.
b. Prioritizing 20% of SERAF repayments. (boomerang farads) to proposed
extremely low-income affordable rental developments that leverage additional
fitnding sources (e.g., Low -Income Housing Tax Credits).
6, Create an affordable housing strategic plan, similar to the City of Anaheim, where the
City commits to constructing a specific number of multi -family rental homes that will be
affordable to lower income working families.
Prioritize the implementation of program 4: Incentives for Affordable Housing
specifically regarding the City's support to `work with the Fairview Developmental
Center and its project proponent towards the provision of 100% affordable housing units
on this site."'
Continue monitoring and negotiating the preservation of affordable homes that are at risk
or have affordability covenants that are so to expire during the 2014-2021 planning
period.
'Chapter 5 2013-2021 Housing Ciry of Costa Mesa, p.67, May 2013.
HOUSING ELEMENT • PAGE HOU-A4
CITY OF COSTA MESA
Chair Fitzpatrick and Planning Commissioner Members
June 21, 2013
Page 3 of 3
Reduce the parking requirement for Granny units from two to one space to make these
units less expensive to develop
Given the City's high housing costs and dearth of affordable homes, many workers and families,
especially those on the lower economic rung, overpay for housing and struggle fmancially to live
and work in this City. The significant impacts, of high housing costs and lack of affordable
homes not only hurt workers and families but also impact the city's economic competitiveness
and attractiveness to major employers. From a major employer's perspective, the lack of
affordable homes in the City means workers have to commute from elsewhere, adding to
congestion and spending money and time on commuting rather than spending and reinvesting
their money in the City.
Given the importance of the draft 2414 2021 Housing Element update, the Coalition welcomes
the opportunity to continue our dialogue on how we can partner with City staff to ensure that the
draft Housing Element includes specific policies that will result in new affordable homes for
extremely low-, very low- and low-income working families in the City_
Please keep us informed of any revisions, updates and meetings regarding the dry 2014-2021
Housing Element and if you have any questions, please free to contact me at: (714) 932-1174 or
kmesfahan @att.net.
Sincerely,
Kathy Esfaham
Member, Costa Mesa Affordable Housing Coalition
cc: Lisa Bates. California Housing and Community Development Department
Christian Abasto, Public Law Center
Cesar Covarrubias, The Kennedy Commission
HOUSING ELEMENT • PAGE HOU-A5
Costa Mesa Gene�P
September 17, 2013
The Honorable Mayor Jim Righeimer, Mayor of Costa Mesa
and Members of the Costa Mesa City Council
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
RE: Comments on Draft 2014-2021 Housing Element Update (September 2013)
Dear Mayor Righeimer and Members of the City Council:
www.kennedycommission.org
17701 Cowan Ave., Suile 260
Irvine, CA 92614
949 250 0909
fax 949 263 0647
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 $20,000 annually in Orange County. Formed in 2001, the Commission has been
successful in partnering and working with jurisdictions in Orange County to create effective
policies that has led to the new construction of homes affordable to lower income working
families.
The Commission is submitting this letter in support of the Costa Mesa Affordable Housing
Coalition's recommendations that are outlined in their letter dated September 3, 2013 in regards
to the City's 2014-2021 draft Housing Element. In addition, the Commission recommends the
City to strengthen Housing Program 10: Adaptive Reuse for Multi -Family Housing to include
specific language that prioritizes the construction of homes affordable to extremely low 'very
low- and low-income working households.
The Commission looks forward to working in partnership with the City to create and implement
effective policies and programs in the City's draft Housing Element that will incentivize the
development of homes affordable to lower income working families. Please keep us updated on
the City's responses to the Coalition's recommendations and on any revisions regarding the draft
Element.
If you have any questions, please free to contact Cesar Covarrubias at (949) 250-0909 or
cesare a@ cennedycommission.org.
Sincerely,
L� 1+�
Cesar Covarrubias
Executive Director
cc: Paul McDougall, California Housing and Community Development Department
Christian Abasto, Public Law Center
Kathy Esfahani, Costa Mesa Affordable Housing Coalition
HOUSING ELEMENT • PAGE HOU-A6
CITY OF COSTA MESA
Costa Mess Affordable Housing Coalition
September 3, 2013
Ms. Hilda Veturis, Management Analyst
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
RE: Comments on Draft 201.4-2021 Housing Element Update (May 2013)
Dear Ms. Veturis:
On behalf of the Costa Mesa Affordable Housing Coalition (the Coalition), we thank you for the
opportunity to review and comment on the City of Costa Mesa's 2014-2021 draft Housing
Element. We have reviewed the draft and are submitting this letter to provide public comments.
As the City moves forward with the draft Housing Element update, the Coalition urges the City
to support and create effective policies that incentivize the development of homes affordable to
lower income working families. Although for this new planning period the City has a total
Regional Housing Needs Assessment (RHNA) of two dwelling units for very low- and low-
income households, it is important to note that the RHNA is the bare minimum and not a
maximum ceiling for future development in the City. Significantly, the City's draft Housing
Element makes clear that the RHNA does not reflect or address the existing housing needs for
lower income working families and special needs residents living in the City. Given the depth of
these unmet housing needs, we are understandably disappointed at the City's lack of progress in
meeting the corresponding housing production goals set forth in the 2005-2014 Housing
Element.
Mindful of the need for new, effective policies that will lead to the actual development of homes
affordable to lower income working families, the Coalition provides the following
recommendations for the City:
1. Meaningfully engage and collaborate with the Coalition and community stakeholders to
develop effective housing policies and programs that will increase affordable home
opportunities for lower income working households.
Continue to support the development of affordable homes on the Fairview
Developmental Center site by changing the land use designation and rezoning the site
from PublieMstitutional to High Density Residential. The Fairview Developmental
Center project, which proposed 242 affordable apartment homes for families and the
developmentally disabled, has been withdrawn by the State; however, the site still
presents a great potential to provide affordable home opportunities and address the City's
existing housing needs for lower income families.
HOUSING ELEMENT • PAGE HOU-A7
Costa Mesa Gene�P
Ms. Hilda Veturis
September 3, 2013
Page 2 of 4
3. Support and identify a specific site for the development of an emergency shelter for the
City's homeless.
4. Reinstate Program 12: Single -Room Occupancy (SRO), Family Residential Occupancy
(FRO) Extended Stay Units as a stand-alone program from the 2008-2014 Housing
Element to the current draft 2014-2021 Housing Element.
S. Prioritize and facilitate the development of new rental homes affordable to lower income
working families, specifically including two- and three- bedroom units for large families,
on city -owned sites (e.g., Costa Mesa Senior Center parking lot site).
a. Create an Affordable Housing Land Trust and donate city -owned sites to the trust.
b. Create Request for Proposals (RFPs) on city -owned sites to affordable home
developers who would effectively leverage the land and funding to create deeper
affordability levels.
6. Provide attractive by -right incentives and concessions of certain development standards
that developers are not otherwise entitled to, in exchange for a dedication of 20% of
homes affordable to extremely low-, very low- and low-income families in the City.
7. Amend the City's overlay zones (e.g., 19 West Urban Plan Area and North Costa Mesa
Specific Plan) to include effective incentives that will facilitate the development of
affordable homes in areas with existing commercial and tight -industrial uses. Housing
Program 4 in the past planning period (also offered in the current draft Element)
promoted density bonus incentives and the deferral of fees for affordable home
developments; however, it has not effectively produced rental homes for lower income
families in mixed-use designations in the City. To incentivize the development of
affordable homes, residential and mixed-use developments in the overlay zones should be
allowed by -right if at least 20% of the homes constructed are set-aside as affordable for
lower income working families.
8. Commit specific funding or financial resources to facilitate the development of homes
affordable for extremely low-income, very low, and low-income working families.
Examples include:
a. Leveraging housing funds and resources (e.g,. in -lieu fees or impact fees) on
potential candidate sites (e.g., Costa Mesa Senior Center parking lot) for lower
income homes that will help increase the development's competitiveness when
applying for Low -Income Housing Tax Credits.
HOUSING ELEMENT • PAGE HOU-A8
CITY OF COSTA MESA
Ms. Hilda Veturis
September 3, 2013
Page 3 of 4
Prioritize and commit potential funding sources (e.g., SBRAF repayments and
boomerang funds) to proposed extremely low-income affordable rental
developments that leverage additional funding sources (e.g., Low -Income
Housing Tax Credits).
9. Identify city -owned sites in the draft Housing Element (e.g., Costa Mesa Senior Center
parking lot, Civic Center Park etc.) and include these sites to the City's inventory of
vacant and under-utilized sites under Program 11: Adequate Sites.
10. Encourage the development of housing affordable to extremely low-income households
through application processing fee waivers for proposed developments with a minimum
of ten percent very low-income homes (e.g., please refer to Huntington Beach's 2014-
2021 Housing Element Program 14).
11. Create an affordable housing strategic pian in which the City commits to constructing a
specific number of multi -family rental hones that will be affordable to lower income
working families (e.g., please refer to Anaheim's Affordable Housing Strategic Plan).
12. Continue monitoring and negotiating the preservation of affordable homes that are at risk
or have affordability covenants that are set to expire during the 2014-2021 planning
period.
13. Reduce the parking requirement for Granny units from two to one space to make these
units less expensive to construct.
14. Evaluate on an annual basis how successful the identified Planned Development
Industrial (PDI) zone will be in facilitating the development of emergency homeless
shelters.
Given the City's high housing costs and dearth of affordable homes, many workers and families,
especially those on the lower economic rung, overpay for housing and struggle financially to live
and work here. The significant impacts of high housing costs and lack of affordable homes not
only hurt workers and families but also impact the City's economic competitiveness and
attractiveness to major employers. From a major employer's perspective, the lack of affordable
homes in the City means workers have to commute from elsewhere, adding to congestion and
spending money and time on commuting rather than spending and reinvesting their money in the
City.
Given the importance of the draft 2014-2021 Housing Element update, the Coalition welcomes
the opportunity to continue our dialogue on how we can partner with City staff to ensure that the
draft Housing Element includes specific policies that will resuit in new affordable homes for
extremely Iow-, very low- and low-income working families in the City.
HOUSING ELEMENT • PAGE HOU-A9
Costa Mesa Gene�P
Ms. Hilda Veturis
September 3, 2013
Page 4 of 4
Please keep us informed of any revisions, updates and meetings regarding the draft 2014-2021
Housing Element and if you have any questions, please free to contact Kathy Esfahani at: (714)
932-1174 or kmesfahani@att.net.
Sincerely,
Kathy Esfahani
For The Costa Mesa Affordable Housing Coalition
cc: Lisa Bates, California Housing and Community Development Department
Christian Abasto, Public Law Center
Cesar Covarrabias, The Kennedy Commission
HOUSING ELEMENT • PAGE HOU-A10
CITY OF COSTA MESA
daiSypilot.eoMopinionItn-dpi-m 0911 -commentary I-20130909,0,1096795,stury
Daily Pilot
Community: General plan must address affordable housing
By Ryan £sfahar i
12:52 PM POT, September 9, 2013
Anyone who pays attention to the doings of the CastaMusa City Couucil knows thatour sity is busy updating its general plan. say.rewmani
The press has covered the many public meetings, creative outreach efforts and mad shows aimed at getting Costa Mesa residents involved in this communal act of visioning fulum
development in the city.
But, sadly, scant attention has been paid to a crucial pad of the general plan update. With little press coverage or public mpuk the City Council is currently reviewing proposed revisions
to the city's housing element, the road map for meeting the city's housing needs for the next seven year.
Looking through the Draft 2014,2021 Housing Element, ane thing is ulcer. The housing market I$ not meeting the needs of large numbers of Costa Mesons- Housing price.; simply do
not match most people's wages,
This is the result of the steep increase in home prices and rents over the past decade and the relatively modest growth in wages. Although tho collapse ofthe housing market in 2008
caused a significant drop to ham prices, from a median of S750,000 fora single family home in 2407 to $530,000 in 2012, chat 2012 median price i5 still $300,000 higher than it was in
1997,
The housing element explains the Mardability gap: "To afford a median priced single-family home is Corm Mesa, an anmal salary of $107,350 xwuid be needed, and a person has m
make approximately $67,080 to afford amedmn-prited condominium. Most occupations in Orange County otter much lower salaries. similarly, most occupations offer wages below
what would be needed to afford an evcageprioed three-bedroom apartment in Costa Mesa"
Orange County is the fourth most expensive metropolitan area in the United States. In order to afford a market -rete two-bedroom apartment an individual needs to earn an hourly wage
of$31.1-1. But ccanomists project drat seven out of 10 job openings in Orange County this decade will be in jobs coming less than $12 an hour.
When the majarity ufjabs in aregion do not pay enough for workers to afford housing, the problem is not a personal one but challenge the comrntmitY must tackle together
What does it really mean to be unable to Word homing? Housing is mat a luxury good. People need housing whether they can afford it or not. This fact forces thousands of Costa
Mesons in live under gruel financial stress.
They have less money for healthcare and transpenatinn and for paying down debt And for those households struggling under severe cost burden — hundreds of Costa Mesa
households pay mote than 51M of their income for housing —the situation is even mote painful.
Growing up in Casta Mesa and attending local public schools, including Estancia High,1 watched may of my peers strugg€e with the burden of high housing costs. For one friend, high
mortgage paymeml meant her parents were on able to buy health insurance for the family. Sadly, this meant my friend has had to fight her undiagnosed depression alone and without the
optieu ofinedtcation
One guy I knew bad to move three times during high school because his family's tent kept rising.
Another friend of mine lived during most of high school in a smaleroom at the Costs Mesa Motor Inn, along with his parents snd5fli ings Recent articles in the Daily Film have
highlightedthe inedequacy of the motels for the hundreds of long-term residents, like my fireadand his family, who live in the motels as a last resort, one step above homeicssans.
The motets ate expensive, but at leash family can get a morn without putting upa security deposit and first and last months' mol Most moms have potbing buts sink for a "kitehrn,"
and many ofthe motels have Jong -standing complaints of unsanitary and unsafeconditons, not to mentma crime
My friend's family eventually saved up enmugb to move out and get an apartment, making them unique, Most =let families are unable to save enough to move someplace better
While the high cost of housing in Costa Mesa causes financial strain for -any, Including thousands of middle-income earners, the predicament ofthe poor,especially "very low" and
"extremely low" income families, demands immediate action. By acting an a few crucial ihitiatives,Costa Mese can improve life fcreountless families that facethe threat of
homtlessness and the deprivations caused by paying unaffordable rents.
First, the city needs to do its best to tenew the affordable housing agreements with apartment owners that are set to expire. We cant afford to lose what affindebte housing we have.
Second, we need to consider how to provide better housing for those families trapped in unsiffordable, squalid, chime -ridden motels. The city should use its saucy, dout and existing pot
of"metal money" (2500,000 allocated this year and next) to Assist nonprofit developer in acquiring a motei far conversion ince an "FRO" (family residential occupancy) complex that
would'pmvide two- and three -roam units with real kitchen facilities for small families, at rates affordable to the extremely low-income,
With the help of grant money, the nonprofit could offer on-site supportive services like job training, child care, afar -school tutoring and enrichment classes, and mental health services,
to help the fan flies build abetter future for themselves, especially the children.
Third, the city should encourage the state to proceed with the hang -promised aff'mdable housing project for low4ncome families and for thedevehopmentally disabled on 10 acres of the,
Fatrvlew Developmental Center property. The project stalled in Sacramento this year, but Costa Mesa ren encourage thedevelopmem by retuning the site to high-density residential
and communicating its support for this important project to state offixiah.
Finally, the city should use the many tools at its disposal to encourage builders to develop outstanding, attractive reatai ]housing that is affordable for low- and eery-low-mcome working
families, For example, the city should create effective incentive such as density bonuses, "by right" development, and the deferral of fees for affordable projects.
The city could really spark some action by donating a city -owned site to an affordable-housmil land trust and issue a 'request for proposal" (RFP) to developers for an affordable project
to bebuilt on the donated site
Thele is much Costa Mesa can do to address its critical lack of affordable housing for low-income families A strong first step would be for the City Cosmeil to revise the 2014-2021
Housing Element to include the foot stmtcgin suggc" here.
RYAN ESFAHANI is a Costa Mesa resident and a college senior at tlC Berkeley. He spent part of the strummer as an intem with the Costa Mesa Affordable Housing Cos tition, studying
affordable -housing issues.
HOUSING ELEMENT • PAGE HOU-Al l
Costa Mesa Gene�P
A-2: Response to Public Comments
In response to these comments, the Draft Housing Element includes policies and
programs to encourage housing for persons with developmental disabilities,
transit -oriented development, and condominium conversion. A new program is
included in the Draft Housing Element to facilitate the conversion of motels into
permanent housing for families. The public is reminded that many of the land
use related issues are being discussed and explored as part of the General Plan
Land Use Element update that is underway. Changes to the Land Use Element
could potentially warrant revisions to the Draft Housing Element at a later stage.
However, the City Council has determined that a land trust is infeasible for the
City of Costa Mesa.
InputPublic
..
The following additions to the Housing Element were made
The public commented on the following:
pursuant to public input. They are in bold print below.
New policies and goals were added under Section 5.8
GOALS, POLICIES, AND PROGRAMS in addition to other
changes shown below:
1. Provide additional incentives for
Goal HOU-3: PROVISION OF ADEQUATE SITES Policy No.
affordable housing related to proximity
HOU-3.5 — Encourage transit -oriented development along
to transportation
transportation corridors.
2. Encourage and support affordable
Goal HOU-4: EQUAL HOUSING OPPORTUNITY Policy No.
residential development to meet the
HOU-4.5 — Encourage and support the construction,
needs of the developmentally disabled
maintenance and preservation of residential
based on universal design principles
developments to meet the needs of the developmentally
disabled.
3. Facilitate the processing of permanent
Preserving and Expanding Affordable Housing
Opportunities:
affordable housing projects, which
include accessible units for the
disabled and expand housing options
➢ Page 68 — Program 4. Incentives for Affordable Housing
in the community.
2013-2021 Objectives: Promote the use of density bonus
incentives and deferral of fees for affordable housing
projects, including but not limited to, the Urban Plan areas
and in North Costa Mea Specific Plan area. Density
bonus information is available on the City's website and at
the public counter and will be provided to developers of
projects in the Urban Plan and North Costa Mesa Specific
Plan areas. Utilize the HOME Community Housing
Development Organization (CHDO) funds to pursue
affordable housing projects, especially for
permanent affordable projects that may include
accessible units for the disabled.
➢ Page 68 - Program 6. Federal/State Housing Programs
2013-2021 Objectives: Encourage private sector to utilize
available Federal and Sate housing programs to increase
the supply of extremely low, very low, low and moderate
income housing. If proposed projects are consistent with
the vision, goals, and objectives of the City's General Plan
and other planning documents that guide residential
HOUSING ELEMENT • PAGE HOU-Al2
CITY OF COSTA MESA
development, the City will provide letters of support for
funding applications. in conjunction with potential
affordable housing projects in the City, the City will
pursue affordable housing funds from HCD to
leverage local resources. Periodically, the City will
contact nonprofit housing developers to explore
potential affordable housing projects and funding
possibilities.
➢ Page 70 — Program 10. Adaptive Reuse for Multi -Family
Housing Adaptive Reuse for Multi -family Housing —
the City may allow, subject to a Zoning Code
Amendment authorized by City Council, the adaptive
reuse of an existing motel use to a residential use
for multi -family housing.
A-3: Response to Comment Letter by the Costa Mesa
Affordable Housing Coalition
The City received a comment letter by the Costa Mesa Affordable Housing Coalition, dated September 3,
2013 and provides the following responses:
Comment 1: Meaningful engagement and collaborate with the Coalition and community stakeholders to
develop effective housing policies and programs.
Response: The City significantly expanded its outreach program for the General Plan update that
includes the Housing Element. Specific meetings were dedicated for obtaining community input on
the Housing Element:
♦ May 15, 2013 — Community Workshop
♦ May 28, 2013 — Planning Commission meeting
♦ June 13, 2013 — Community Workshop
♦ June 19, 2013 — Community Workshop
♦ June 24, 2013 — Planning Commission meeting
♦ September 17, 2013 — City Council meeting
In addition, the City held five Road Shows where residents and stakeholders discussed housing and
other General Plan issues.
♦ July 10, 2013 — Meeting with local home builders
♦ August 20, 2013 — Meeting with Eastside Neighbors Group
♦ August 27, 2013 — Meeting with the Building Industry Association of Southern California
♦ September 24, 2013 — Meeting with the Costa Mesa Chamber of Commerce
♦ October 2, 2013 — Meeting with Mesa Verde Community Association
Several program revisions in the Draft Housing Element are direct response to public comments (see
summary table provided earlier and further discussions below).
HOUSING ELEMENT • PAGE HOU-A13
Costa Mesa Gene�P
Comment 2: Continue to support the development of affordable homes on the Fairview Developmental
Center site.
Response: The Fairview Developmental Center withdrew its application to develop affordable
housing on site. The City has included a monitoring component in Program 12 (Adequate Sites) to
monitor the State's intent for the site.
Comment 3: Support and identify a specific site for the development of an emergency shelter.
Response: As required by law, the City has identified the PD Industrial zone to permit emergency
shelters by right. The City only has the authority to designate a zone for allowable uses but does not
have the authority to designate private properties for public uses.
Comment 4: Reinstate Program 12 - Single -Room Occupancy, Family Residential Occupancy (FRO) as
a stand-alone program.
Response: Currently, most motels in the City already incorporate an extended stay component.
Based on comments from stakeholders at public meetings, FROs or existing motel rooms are not an
appropriate housing arrangement for families. The City has introduced a new program to facilitate
and encourage adaptive reuse of motels into permanent housing for families (Program 10).
Comment 5: Prioritize and facilitate the development of new rental homes affordable to lower income
working families on City owned sites. Create an Affordable Housing Land Trust and issue RFP on City
owned sites for affordable housing.
Response: The City owns only a few properties — two City -owned parking lots serving under -parked
commercial areas; Senior Center with associated parking lot; and a vacant property at 111 Fair Drive
that is set aside for an institutional use. Given the small portfolio, an Affordable Housing Land Trust
is not an appropriate or feasible tool. No affordable housing developers have expressed interest in
utilizing the Senior Center parking lot. Furthermore, the City is in the process of updating its Land
Use Element, which will consider various options for the site.
Comment 6: Provide attractive by -right incentives and concessions of certain development standards
that developers are not otherwise entitled to, in exchange for a dedication of 20 percent of homes
affordable to extremely low, very low, and low income families.
Response: The City does not have an inclusionary housing ordinance. Given the current market
conditions and the Governor's veto of AB 1229 (to restore inclusionary housing policies), the City is
not in the position to consider inclusionary zoning at this time.
Comment 7: Amend the City's overlay zones to include effective incentives that will facilitate the
development of affordable homes in areas with existing commercial and light industrial uses.
Response: The overlay zones (in Urban Plan areas) allow residential and mixed use developments
in areas that normally do not allow residential uses. The flexible development standards are
established to encourage a range of housing options in these areas. Affordable housing incentives
are available citywide, including fee deferrals and density bonus.
The City has recently amended the Specific Plan to allow high density residential at 28 units per acre
on Sakioka Lot 2. Overall, the City's residential sites inventory far exceeds its RHNA allocation of two
units. Furthermore, as part of the City's General Plan update, the City is considering other areas for
future residential development.
Comment 8: Commit specific funding or financial resources to facilitate the development of homes
affordable for extremely low, very low, and low income working families. Leverage housing funds on
HOUSING ELEMENT • PAGE HOU-A14
CITY OF COSTA MESA
potential candidate sites). Prioritize and commit potential funding sources (SERAF repayments and
boomerang funds) to proposed extremely low income affordable rental developments.
Response: The legislation and its interpretation governing the amount of redevelopment funds that a
successor agency is able to retain is constantly changing. The amount of redevelopment funds that
the Costa Mesa Successor Agency may be able to retain, if any, cannot be determined at this time.
The City is not in the position to designate how such unknown funds may be expended in the future.
Comment 9: Identify city -owned sites in the draft Housing Element and include these sites to the City's
inventory of vacant and underutilized sites.
Response: The City's RHNA is only two units and the City has identified an inventory of sites that is
more than adequate to accommodate its RHNA. The City owns only a few properties — two City -
owned parking lots serving under -parked commercial areas; Senior Center with associated parking
lot; and a vacant property at 111 Fair Drive that is set aside for an institutional use. The Senior
Center parking lot site has been available for affordable housing development as identified in the
2008 Housing Element. However, to this date no affordable housing developers have expressed
interest. The future uses of these sites are being considered as part of the City's General Plan
Update currently underway.
Comment 10: Encourage the development of housing affordable to extremely low income households
through application processing fee waivers for proposed development with a minimum of ten percent very
low income homes.
Response: The City has revised the Draft Housing Element to provide fee waivers for projects that
include at least ten percent of the units as housing affordable to extremely low income households.
Comment 11: Create an affordable housing strategic plan in which the City's commits to constructing a
specific number of multi -family rental homes that will be affordable to lower income working families.
Response: The City does not have an inclusionary housing policy and does not have adequate
funding to subsidize new construction. The City is not in the position to commit to constructing a
specified number of affordable units. The City will continue to partner with nonprofit and other
housing developers as those opportunities arise to provide a range of housing options in the City.
Comment 12: Continue monitoring and negotiating the preservation of affordable homes that are at risk
or have affordability covenants that are set to expire during the planning period.
Response: The City will continue to monitor the status of at risk housing units. The City has a
demonstrated history of working with property owners to extend affordability controls on publicly
assisted affordable housing projects. However, the City recognizes scattered sites affordable units
provided through the Density Bonus ordinance are difficult to preserve, given that the rents for the
affordable units are only restricted at affordable levels but not subsidized with public funds. The
City's strategy is to replenish the affordable housing inventory by encouraging the use of density
bonus on new developments. Also, the City has revised the program to require property owners of
density bonus projects to provide a two-year notice to existing and potential tenants regarding the
remaining length of affordability controls.
Comment 13: Reduce the parking requirement for granny units from two to one space.
Response: The City's second unit ordinance provides for the construction of a detached or attached
accessory unit. The maximum unit size is 1,200 square feet for a detached unit or up to 30 percent of
the footprint of the main unit for an attached unit. These standards were established to facilitate
second units as affordable housing options not only for seniors but also for family households.
Therefore, given the generous unit size, the two parking spaces per unit are appropriate.
HOUSING ELEMENT • PAGE HOU-A15
Costa Mesa Gene�P
Comment 14: Evaluate on an annual basis how successful the identified Planned Development Industrial
zone will be in facilitating the development of emergency homeless shelters.
Response: The City will continue to monitor the effectiveness of the PD Industrial zone for
emergency shelters.
HOUSING ELEMENT • PAGE HOU-A16
A-4: Outreach Materials
2012/2023 General Plan Update
The City of Costa Mesa is Updating its General Plan
State law requires that each city adopt a General Plan "for the physical
development of a city and any land outside its boundaries which bears
relation to its planning". A General Plan should be updated periodically every
ten years.
"Great Reach" to the Community
The General Plan update may be best accomplished by receiving and
incorporating inputfrom a wide segment of the community. Staff was directed
by City Council to hold monthly community workshops discussing the process
and details of the draft plan in the nextfew months. We strongly encourage all
residents, business owners and community leaders to participate in the public
workshops since their input is invaluable to the process.
Please refer to the City's Website for updates. The website will be updated
periodically for the final dates and locations of the community workshops and
meetings. You may also contact the Planning Divisions at7141754-5245 if you
have any questions.
General Plan Road Shows
In addition to the workshops, monthly road shows will be held during
business hours at various locations throughout the City. The following are
tentative dates and locations; please refer to the website for updated
information.
/ Wednesday, June 26, 2013
Meeting with Newport Beach Association of Realtors
(includes Costa Mesa and Newport Beach)
Time - 9:00 to 11:00 a.m.
Location - City of Costa Mesa
City Hall, Conf. Rm 1A
CITY OF COSTA MESA
UPDATED, June 11, 2013
.UPCOMING -
COMMUNITY
WORKSHOPS
/ Thursday, June 13, 2013
Housing Element Workshop
Time - 6:00 to 7:30 p.m.
Location - City of Costa Mesa
Emergency Operations Center (EOC)
99 Fair Drive, Costa Mesa
/ Wednesday, June 19, 2093
Visioning Workshop
Time - 6:00 to 7:30 p.m.
Location - City of Costa Mesa
Emergency Operations Center (EOC)
99 Fair Drive, Costa Mesa
/ Friday, June 28, 2013
Visioning Workshop
Time - 10:00a.m. to 5:00 p.m.
Location - City of Costa Mesa
Staff booth at the 60th Anniversary
Weekend Celebration
/ Tuesday, July 9, 2013
Housing Element Workshop
Time - 6:00 to 7:30 p.m.
Location - City of Costa Mesa
City Hall, Conference Room 1A
/ Wednesday, July 17, 2013
Visioning Workshop
Time - 6:00 to 7:30 p.m.
Location - City of Costa Mesa
Emergency Operations Center (EOC)
99 Fair Drive, Costa Mesa
/ Wednesday, August 21, 2013
Land Use Alternatives Workshop
Time - 6:00 to 7:30 p.m.
Location - City of Costa Mesa
Emergency Operations Center (EOC)
99 Fair Drive, Costa Mesa
/ Wednesday, September 18, 2013
Circulation Element Workshop
Time - 6:00 to 7:30 p.m.
Location - City of Costa Mesa
Emergency Operations Center (EOC)
99 Fair Drive, Costa Mesa
/ Wednesday, October 16, 2013
Circulation Element Workshop
Time - 6:00 to 7:30 p.m.
Location - City of Costa Mesa
Emergency Operations Center (EOC)
99 Fair Drive, Costa Mesa
1 Wednesday, November 20, 2013
Preferred Alternatives Workshop
Time - 6:00 to 7:30 p.m.
City of Costa Mesa
Emergency Operations Center (EOC)
99 Fair Drive, Costa Mesa
FL.
HOUSING ELEMENT • PAGE HOU-A17