Draft Housing Element Update 2013-2020 Exec SummaryCity of Poway
Housing Element Update 2013-2020
DRAFT April 2013 Housing Element Update | Page ES-1
EXECUTIVE SUMMARY
The California State Legislature enacted legislation to ensure the attainment of the State
housing goal by requiring that counties and cities prepare and implement housing elements.
The Housing Element Update (2013-2020) for the City of Poway is an element of the City’s
General Plan and is prepared for the next housing cycle from January 1, 2013 to December
31, 2020. The Housing Element Update period covers an allocation of housing units built from
January 1, 2010 to December 31, 2020.
This document presents a plan to achieve the City’s housing goal, while meeting the
requirements of the State of California (Article 10.6 of the Government Code) and includes:
analysis of the previous Housing Element (2005-2010) and current housing factors (physical,
fiscal, regulatory); identification of constraints to achieving the housing goal; and proposed
modifications and refinements to the objectives, policies and programs identified in the
previous Housing Element. In addition to responding to the requirements of State law, Poway’s
Housing Element demonstrates how the strategies to meet its locally determined housing needs
are addressed through plans, programs and projects.
The goal of the Housing Element Update is to help ensure that suitable, safe housing is
available at a cost that is affordable to all current and future residents of this community.
Toward this end, the City will encourage a variety of individual choices of tenure (i.e. rental,
home-ownership), type and location of housing throughout the community. This Housing
Element, while mandated by State law, also represents a roadmap for Poway to continue
promoting sustainable housing opportunities for all its residents now and into the future.
A. 2005-2010 Housing Element Review
The previous Housing Element (2005-2010) incorporated the Regional Housing Needs
Assessment (RHNA) Plan adopted by the San Diego Association of Governments (SANDAG)
Board of Directors. The RHNA represents a distribution and allocation of dwelling units
to satisfy housing needs throughout the 19 jurisdictions in San Diego County. The RHNA
process occurs during each Housing Element cycle and the State’s Department of Housing
and Community Development (HCD) delegates the allocation of regional dwelling units to
SANDAG. The RHNA for the previous Housing Element for the projection period of 2003
through 2010 allocated 1,242 new units to Poway, consisting of 285 units for very low income,
216 units for low income, 235 units for moderate income, and 505 units for above moderate
income households. During that same time period, a total of 588 affordable housing units were
constructed, which was 47 percent of the quantified allocation. An evaluation summary of the
goals, strategies and programs of the previous Housing Element is included in Chapter 5 of this
Housing Element Update.
Several of the goals and objectives identified in the previous Housing Element were addressed
through implementation of programs designed to facilitate the support for housing in Poway.
Within the past few years, the City amended its Municipal Code to:
Implement an Affordable Housing Overlay Zone program; and
City of Poway
Housing Element Update 2013-2020
DRAFT April 2013 Housing Element Update | Page ES-2
Incorporate State Requirements (Water Conservation Landscape Ordinance, California
Green Building Standards); and
Streamline certain permit processes; and
Modify Density Bonus regulations and Reasonable Accommodation requirements
All of these efforts and actions indicate that the previous Housing Element Update was
successful in promoting and achieving the overall goal for housing in the City of Poway.
B. Public Participation
The City was diligent with its efforts to achieve public participation of all economic segments in
the development and adoption of the new Housing Element Update. Poway’s outreach program
included workshops where participants provided feedback on housing topics as well as broader
community issues. Various objectives, policies, and programs identified in this Housing
Element Update address the participants’ feedback. More detail on the public participation
process is described in Chapter 1.
C. State Legislation
The State Legislature took action to eliminate California redevelopment agencies in June 2011.
Ultimately, the legislation was challenged and taken up for immediate review by the California
Supreme Court. While the matter was pending judicial review, all new redevelopment activity
(including housing) was prohibited. Once upheld by the Supreme Court, the legislation
effectively reached back to January 2011, only giving former redevelopment agencies the
limited ability to make payments and perform obligations that were in effect as of that date.
The City of Poway anticipated the State’s intent to eliminate redevelopment agencies and
formed the Poway Housing Authority in March 1, 2011. On January 13, 2012, the City
designated the Poway Housing Authority as successor agency to the former Poway
Redevelopment Agency and the recipient of the housing assets and liabilities of the former
redevelopment agency.
Redevelopment monies were one of the three main funding sources used to make affordable
developments viable statewide. The others are State bond funds and Federal funds
administered through the Department of Housing and Urban Development. The City cannot
directly apply for Federal housing funds as they are administered through the County of San
Diego.
Successor agencies to the former redevelopment agencies were given the ability to pay existing
bonded indebtedness and other enforceable obligations, subject to approval by the State
Department of Finance. Any excess funds not needed for enforceable obligations are then
distributed by the County to other taxing agencies including school districts, thereby providing
relief to the State budget. Unfortunately, there were no provisions when redevelopment was
eliminated to provide ongoing funding for affordable housing. In fact, housing funds that were
held by former redevelopment agencies and not encumbered for housing purposes prior to
January 1, 2011, were returned to the County Auditor-Controllers in November 2012 and
City of Poway
Housing Element Update 2013-2020
DRAFT April 2013 Housing Element Update | Page ES-3
subsequently redistributed as regular property tax. The only housing funds successor agencies
could retain were those encumbered for debt service or other approved enforceable obligations.
Although the impacts involved in the California Supreme Court decision to eliminate
redevelopment funds may be unknown for several years, many speculate that this decision will
result in a loss of millions of dollars of annual funding designated for affordable housing
throughout California. It is anticipated that new avenues for funding economic development
and affordable housing will be created and tested in the coming years, but because of the
uncertainty of available funds at this time, a conservative approach to affordable housing
programs is recommended throughout this document.
Existing and new legislation relating to the purpose of Housing Elements is described and
considered in the analysis of programs to be implemented for the 2013-2020 Housing Element
cycle. The legislation is identified, analyzed, and a recommendation regarding programs is
listed further in this document in Chapters 1, 3, 5 and 6.
D. Housing Needs Assessment
The Needs Assessment utilizes socio-economic data to discuss the major components of
housing needs in Poway. In preparing for the next cycle of the RHNA, data has been collected
from a variety of sources to develop a comprehensive assessment of the community.
California’s housing market peaked in the summer of 2005 when a dramatic increase in the
State’s housing supply was coupled with low interest rates. The period between 2006 and 2010,
however, reflects a time of significant change as the lending market collapsed and home prices
saw significant decreases. Double-digit decreases in median sale prices were recorded
throughout the State until recently. A reduction in the number of sales was a result of
increasingly limited availability of credit. As such, housing production in the last few years has
been limited while the need for affordable housing increased along with high unemployment
rates and foreclosure rates.
The following is a summary of certain demographic criteria that has been evaluated for Poway
in comparison to the San Diego County region:
A median household income of $96,854 (adjusted for inflation 2010 dollars) which is 35
percent higher than the region median household income of $62,771 (adjusted for
inflation 2010 dollars).
A limited supply of vacant developable residential land.
A limited supply of redevelopment and infill lands available for residential development.
An older housing stock, with 58 percent (9,773) of the dwelling units within the City built
before 1970.
A median price of dwelling units sold at $448,750 in Poway in 2012, approximately
$106,000 higher than in the region.
The previous Housing Element (2005-2010) utilized the SANDAG 2030 Regional Growth
Forecast which stated Poway was expected to gain 3,770 new residents and 431 new
dwelling units between 2000 and 2010. Poway experienced notable demographic changes
City of Poway
Housing Element Update 2013-2020
DRAFT April 2013 Housing Element Update | Page ES-4
since the 2005-2010 Housing Element cycle. These changes to the City’s population and
housing are summarized below:
Population in the City decreased from 48,044 in 2000 to 47,811 in 2010.
Rental housing costs increased from $1,195 per month in 2000 to $1,339 per month in
2010 (adjusted for inflation 2010 dollars) an increase of 12 percent (depending on
bedroom number).
Owner-occupied dwelling units decreased less than one percent.
The Housing Element Update (2013-2020) uses the SANDAG 2050 Regional Growth Forecast,
adopted with SANDAG’s Regional Transportation Plan (RTP) which projects that Poway will
gain 3,326 new residents and 918 new dwelling units between 2008 and 2020. This projection
is consistent with the land use and zoning policies of the City’s General Plan.
E. Goals, Objectives, Policies, and Programs
In order to achieve suitable, safe housing available to all current and future residents of the
community at a cost that is within the reach of the diverse economic segments that comprise
this community, the City has established objectives and programs to meet its stated goal. The
previous Housing Element objectives were analyzed and have been reorganized with specific
policies and programs.
The new Housing Element Update (2013-2020) for Poway will be similar to the previous
Housing Element except that a new Residential Sites Inventory (Table 4-4 in Chapter 4 and
Table 1 in Appendix A) that identifies all affordable housing sites will be included and Poway’s
housing policies will need to be in compliance with new State mandates. The new update
describes demographic changes, constraints that impact development of housing, refinements
to the City’s objectives and programs to incorporate recent legislation, public participation, and
the recent inventory and assessment of local and regional housing needs.
The State of California recognizes that total housing need may exceed the locality’s ability to
meet those needs with existing resources. For that reason, jurisdictions are required to
estimate and categorize the number of dwelling units likely to be constructed, rehabilitated or
conserved/preserved (quantified objectives) according to each allocated RHNA income level.
City of Poway
Housing Element Update 2013-2020
DRAFT April 2013 Housing Element Update | Page ES-5
In October, 2011, SANDAG adopted the RHNA and Poway allocations of the Regional Share
Needs are as follows:
Table E-1
Regional Housing Needs Assessment (RHNA)
1/1/2010-12/31/2020
Poway
Percent
of Total* Region
Percent of
Total**
Total housing units 1,253 100% 161,980 100%
Very Low*** 201 16.0% 36,450 22.5%
Low 152 12.1% 27,700 17.1%
Moderate 282 22.5% 30,610 18.9%
Above Moderate 618 49.3% 67,220 41.5%
*SANDAG Final RHNA
**HCD RHNA Determination
***50% to be Extremely Low
Income
Note: Income categories are based on Area Median Income (AMI) and include:
Extremely Low Income (less than or equal to 30% of the AMI)
Very Low Income (greater than 30% and less than or equal to 50% of the AMI)
Low Income (greater than 50% and less than or equal to 80% of the AMI);
Moderate Income (greater than 80% and less than or equal to 120% of the AMI);
Above-Moderate Income (greater than 120% of the AMI)
Note the following lists the 2012 Area Median Income limits for San Diego County:
San Diego County
2012 Area Median
Income Limit
Income Category Number of Persons in Household
1 2 3 4
Extremely Low $ 16,900 $ 19,300 $ 21,700 $ 24,100
Very Low Income $ 28,150 $ 32,150 $ 36,150 $ 40,150
Low Income $ 45,000 $ 51,400 $ 57,850 $ 64,250
Median Income $ 53,150 $ 60,700 $ 68,300 $ 75,900
Moderate Income $ 63,750 $ 72,900 $ 82,000 $ 91,100