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Item 6.1 - HOMES - Home On My Extra Space, Pilot Program ProposalTO: FROM: DATE: SUBJECT: CITY OF POWAY MEMORANDUM Members of the City Council � C'\ Steve Vaus, Mayor ✓ <-,..;...--;;;-� February 5, 2019 HOMES -Home On My Extra Space, Pilot Pr ogram Proposal There is a profound housing shortage throughout California and overwhelming demand for affordable housing. Sacramento is ramping up the pressure on cities to produce such housing, or else! Threats of loss of funding and loss of local control seem very real and send shivers through local jurisdictions. And, though Poway has one affordable-housing project in the works and another potential project in the pipeline, we can't afford to sit idly by waiting for a development partner and another project to come along. We need to explore additional options. I believe one such option is right here in our own back yards ... literally. As you know, the State has recently made construction of granny-flats or Accessory Dwelling Units (ADU) much less burdensome. That has resulted in a fair amount of buzz around the possibility that ADUs could help reduce the housing shortage. Encinitas is now offering pre­ approved ADU building plans and has waived fees to encourage construction. The County has also moved to waive fees to reduce building costs. Those are big steps in the right direction. But we can do more. I propose that Poway build and pay for Accessory Dwelling Units to create low-cost housing for qualified renters. Following are the very basics of my HOMES (Home On My Extra Space) concept: •City of Poway pays construction costs for ADU or granny flat on participating homeowner's private property. •Homeowner allows the unit to be an affordable-housing rental for a specific term, expected to be in the range of 10-12 years. •A non-profit, such as Community Housing Works or similar organiz ation, acts as property manager for the ADU -screening tenants, collecting rent, etc. •Rental proceeds are divided among the three parties allowing the City to recoup its investment, the housing organization to cover its costs, and the homeowner to see some revenue. •At the end of the term the homeowner gains full control/ownersh ip of the unit without additional cost or obligation. 1 of 2 February 5, 2019 Item #6.1 Pilot Program Proposal: HOMES February 5, 2019 Page 2 There are aspects of my HOMES concept that require research and exploration, and the concepts shared above are merely a starting point. With Council concurrence I would like to create a HOMES subcommittee, including myself and Councilmember Mullin, lo work with staff and the City Attorney with the goal of returning to Council at a later date with a status report and a potential plan to produce five to ten HOMES units. That plan would ultimately require Council approval. I hope you agree that this approach could potentially expand Poway's affordable-housing options at a greatly-reduced cost without compromising the character of our neighborhoods. 2 of 2 February 5, 2019 Item #6.1