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3.A Attachment 2020-2028 Pismo Beach Housing Element_Public Draft JUNE 2020 1 PUBLIC DRAFT CITY OF PISMO BEACH 2020-2028 HOUSING ELEMENT UPDATE FOR THE CITY OF PISMO BEACH No ------------ PLACEWORKS dfim • ■�I!Iail'+1111111111 PLACEWORKS Mp BBC JUNE 2020 1 PUBLIC DRAFT CITY OF PISMO BEACH 2020-2028 HOUSING ELEMENT UPDATE FOR THE CITY OF PISMO BEACH Prepared By: ® PLACEWORKS P.O. Box 1316 San Luis Obispo, California 93406 t 805.457.5557 ORANGE COUNTY • BAY AREA • SACRAMENTO • CENTRAL COAST • LOS ANGELES • INLAND EMPIRE • SAN DIEGO www.placeworks.com Ta bl e of Con tents Chapter1.................................................................................................1-1 Introduction ........................................................................................................................ 1-1 A. Community Context............................................................................................... 1-1 B. Organization of the Housing Element................................................................ 1-3 C. Relationship to General Plan Elements............................................................... 1-3 D. Public Participation................................................................................................ 1-4 Chapter2.................................................................................................2-1 CommunityProfile.............................................................................................................2-1 A. Demographic Characteristics................................................................................2-1 B. Economic Characteristics......................................................................................2-3 C. Housing Characteristics.........................................................................................2-9 D. Special Housing Needs........................................................................................2-24 Chapter3.................................................................................................3-1 HousingConstraints...........................................................................................................3-1 A. Market Constraints.................................................................................................3-1 B. Governmental Constraints....................................................................................3-3 Chapter4.................................................................................................4-1 HousingResources.............................................................................................................4-1 A. Regional Housing Needs Allocation....................................................................4-1 B. Sites Inventory and Analysis .................................................................................4-2 C. Infrastructure and Environmental Constraints..................................................4-5 D. Financial and Administrative Resources.............................................................4-8 Chapter 5 — Review of the Previous Housing Element.........................5-1 A. Housing Opportunity................................................................................................... 5-1 Chapter 6 — Goals, Policies, and Programs............................................6-1 Appendices Appendix A Housing Conditions Survey Maps Appendix B Vacant Land Inventory Map Appendix C Vacant Land Inventory (detailed table) Appendix D 100- and 500-Year Floodplain Map City of Pismo Beach 2020 - 2028 Housing Element Page i �Yoll� Table of Contents A�SMo B�PL� Charts Chart 2-1 Trends in Population Growth.........................................................................2-1 Chart 2-2 Population Growth Projections......................................................................2-2 Chart 2-3 Trends in Population Age................................................................................2-2 Chart 2-4 Industry Profile.................................................................................................2-3 Chart 2-5 Largest Employers............................................................................................2-4 Chart 2-6 Pismo Beach Employment Projections.........................................................2-5 Chart 2-7 San Luis Obispo-Paso Robles-Arroyo Grande Metropolitan Statistical Area Projected Employment by Occupation and Wage..........................2-5 Chart 2-8 Travel Time to Work........................................................................................2-7 Chart 2-9 Household Projections.....................................................................................2-7 Chart 2-10 Household Income by Tenure Characteristics...........................................2-8 Chart 2-11 Trends in Housing Type..............................................................................2-10 Chart 2-12 Trends in Housing Tenure..........................................................................2-10 Chart 2-13 Vacant Units by Type...................................................................................2-11 Chart 2-14 Housing Age Characteristics.......................................................................2-12 Chart 2-15 Housing Conditions Survey Results...........................................................2-13 Chart 2-16 Median Home Prices....................................................................................2-14 Chart 2-17 Median Home Selling Price for 2018 and 2019 .......................................2-14 Chart 2-18 Market Rental Rates by Unit Type.............................................................2-15 Chart 2-19 Household Income Limits by Household Size........................................2-15 Chart 2-20 Housing Affordability..................................................................................2-16 Chart 2-21 Housing Problems for All Households.....................................................2-17 Chart 2-22 Housing Overpayment in Pismo Beach....................................................2-18 Chart 2-23 Overcrowded Households..........................................................................2-19 Chart 2-24 Assisted Housing Inventory,Pismo Beach, 2018....................................2-21 Chart 2-25 Estimated Costs of Preserving At-Risk Units..........................................2-22 Chart 2-26 Senior Households.......................................................................................2-25 Chart 2-27 Senior Households by Income Group......................................................2-25 Chart 2-28 Persons with Disabilities by Type..............................................................2-27 Chart 2-29 Employment Status of Persons with Disabilities.....................................2-27 Chart 2-30 Developmentally Disabled Residents by Age...........................................2-28 City of Pismo Beach Page ii 2020-2028 Housing Element (�(Y OF Table of Contents A�SMO Chart 2-31 Developmentally Disabled Residents by Residence Type......................2-29 Chart 3-1 Disposition of Home Loans.........................................................................3-2 Chart3-2 Interest Rates..................................................................................................3-3 Chart 3-3 Residential Land Use Controls in Pismo Beach........................................3-4 Chart 3-4 Residential Uses Permitted in the Coastal Zone.......................................3-9 Chart 3-5 Residential Uses Permitted Outside Coastal Zone.................................3-10 Chart 3-6 Residential Development Standards in the Coastal Zone......................3-12 Chart 3-7 Residential Development Standards in Non-Coastal Zones.................3-13 Chart 3-8 Residential Standards in Coastal Zone Commercial Zones...................3-14 Chart 3-9 Residential Standards in Non-Coastal Commercial Zones....................3-14 Chart 3-10 Parking Standards.........................................................................................3-16 Chart 3-11 Planning and Development Fees...............................................................3-18 Chart 3-12 Development Fees for New Housing.......................................................3-19 Chart 3-13 Proportion of Fee in Overall Development Cost for a Typical Residential Development............................................................................3-20 Chart 3-14 Permit Processing Procedures....................................................................3-22 Chart 3-15 Timelines for Permit Procedures...............................................................3-23 Chart 3-16 Constraints on Housing for Persons with Disabilities ...........................3-25 Chart 4-1 Regional Housing Needs Allocation Progress 2019-2028 ......................4-2 Chart 4-2 Pismo Beach: Vacant Land Sites Summary................................................4-3 Chart 4-3 Residential Units Built After Demolition, 2001-2018..............................4-5 Chart 4-4 State Program Funding Sources...................................................................4-8 Chart 5-1 Regional Housing Needs Allocation 2014-2019.......................................5-1 Chart 5-2 Review of Previous Housing Element Programs...................................... 5-3 Chart 6-1 Quantified Objectives for the 2020-2028 Housing Element..................6-3 Figures Figure 1 Regional Location Map................................................................................. 1-2 City of Pismo Beach 2020-2028 Housing Element Page iii �YOII� Table of Contents A�sMo B�PL� This page intentionally left blank. City of Pismo Beach Page iv 2020-2028 Housing Element Chapter 1 Introduction The 2020-2028 Housing Element addresses the City of Pismo Beach's (the City's) plans to meet its housing needs, particularly the availability, affordability, and adequacy of housing supply. The Housing Element r defines strategies and programs that will serve all socioeconomic groups. To these ends, the Housing Element accomplishes six objectives: 1) Identifies adequate sites for a range of housing options; 2) Provides guidance for developing adequate and affordable housing; 3) Addresses constraints to meeting the City's housing needs; 4) Defines approaches to conserve and improve housing conditions; 5) Promotes housing opportunities for all persons; and 6) Preserves and enhances Pismo Beach's natural environment. The following discusses the context for housing policy in Pismo Beach, the organization of the Housing Element, the element's relationship to other elements of the General Plan, and the public participation process employed in the preparation and adoption of the Housing Element. A. Community Context Pismo Beach is a coastal community of approximately 8,200 persons in San Luis Obispo County, midway between San Francisco and Los Angeles (see Figure 1). The City was founded in 1891 and incorporated in 1946. Pismo Beach is well known for its natural beauty and spectacular ocean views, tourism, and small-town character. City of Pismo Beach 2020 -2028 Housing Element Page 1-1 �Yoll� Introduction A�sMo B�PL� FIGURE 1 — REGIONAL LOCATION MAP 01 G't Y Oa 101 San Luis 'OiJ. C� Obispo yO gEP i - _�♦ 2 Pismo ♦ Beach Arroyo ♦ Graver Grande ♦ Beach Oceana ♦ Nipomo ♦ f ♦ � f \e Eeact`e �',♦r♦ �P Cities s-Way 0 City Limits 1 N Miles Grandvgv� A0 0.5 1 2 Source:SLO LAFCO,2019;Esri,2019 City of Pismo Beach Regional Location Map For the sixth-round planning period of the Housing Element (2020-2028) and beyond, the City faces many challenges: balancing employment and housing opportunities, matching the supply and demand for housing, enhancing the affordability of housing for all segments of the population, ensuring that adequate water and public services are available, and conserving natural resources that distinguish Pismo Beach. The 2020-2028 Housing Element sets forth a strategy to address these issues and provide guidance for local government decision making. City of Pismo Beach Page 1-2 2020-2028 Housing Element �Yolll Introduction A�SMo B�PL� B. Organization of the Housing Element The Housing Element update is a eight-year plan for the period from December 31, 2020, to December 31, 2028. The Housing Element consists of the following major components: 1) Introduction to the Housing Element, including the planning context in Pismo Beach, General Plan consistency,and the public participation process (Chapter 1). 2) An analysis of the City's population and housing characteristics and trends, including special housing needs (Chapter 2). 3) A review of potential governmental, market, and environmental constraints that impact the City's ability to address housing needs in Pismo Beach (Chapter 3). 4) An evaluation of land and financial resources available to address Pismo Beach's housing goals (Chapter 4). 5) An evaluation of the previous 2010 Housing Element; its effectiveness; progress in implementation; and appropriateness of goals, objectives, and policies (Chapter 5). 6) Housing goals, policies, and programs to address the City's identified housing needs (Chapter 6). The Housing Element is meant to address the City's housing needs. One of the main goals of the Housing Element is to increase affordability of housing in an equitable manner. This is often referred to as "affordable housing." However, the City recognizes that the high cost of housing in Pismo Beach makes it difficult for the local workforce to afford housing. In fact, teachers or nurses supporting a family could fall into the lower-income categories. Therefore, in order to better describe the housing needs, "affordable housing" and"workforce housing" are used interchangeably in the document. C. Relationship to General Plan Elements The California Government Code requires that all the elements of a general plan be consistent,so that no conflicts exist.The most important aspect of consistency among general plan elements is that policies and implementation measures in the general plan elements support one another to achieve the goals and vision of the general plan. The Pismo Beach General Plan contains 10 elements—seven mandatory elements and three non-mandatory elements. The General Plan was last comprehensively updated in 1993 but an update is underway. The 2020-2028 Housing Element policies and programs are consistent with and build on the policies and programs set forth in the other nine elements of the General Plan. The City is currently updating the General Plan/Local Coastal Program,which will address consistency with the housing element throughout the rest of the General Plan/LCP. City of Pismo Beach 2020 -2028 Housing Element Page 1-3 �Yoll� Introduction A�sMo B�PL� D. Public Participation The California Government Code states that "the local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element,and the program shall describe this effort." 1. Community Survey The City conducted public outreach via an online community survey. The survey was launched on the City's website in early April 2020 and was open until mid June 2020 to allow for a long time period for input to be provided due to the impacts of the COVID-19 pandemic. A total of 43 responses were recorded. The survey questions below are italicized and are followed by a summary of the responses: Demographic Information l) llhich gender doyou idenfift with? Approximately 49 percent of respondents were female, 35 percent were male,and 7 percent did not indicate their gender identity. 2) How old areyou? The median age of the respondents was 50 years. The youngest respondent was 28 and the oldest respondent was 100. Forty percent were between the ages of 25 and 50, 37 percent were 51 to 74 years of age, and one percent was older than 75 years of age. 3) Doyou identi ft as Hic�anic/Latino?Choose one. Most respondents (approximately 77 percent) did not identify as Hispanic or Latino. Approximately nine percent reported Hispanic or Latino ethnicity. Approximately 15 percent did not disclose their ethnic background. 4) 1Vhat race doyou ident with?Choose one or more regardless of ethnicity. The majority of respondents identified as white (approximately 81 percent). Equal amounts reported as Asian or Native Hawaiian/Pacific Islander (approximately 6 percent each). Approximately two percent reported American Indian or Alaska Native racial background. Nearly 11 percent of respondents did not disclose their racial identity. 5) Do you own or rentyour current home? Sixty-five percent) indicated that they owned their home while approximately 33 percent said they paid rent for their home. Two percent of respondents indicated City of Pismo Beach Page 1-4 2020-2028 Housing Element (�(Y OF Introduction A�SMO other housing arrangements such as being in the military or experiencing homelessness. 6) W>hich of the following best describesyou? Check all that apply. This question posed a list of demographic information for the respondent to choose from, which included the following: — I live in Pismo Beach — I work in Pismo Beach — I commute out of Pismo Beach for work/school — I commute into Pismo Beach for work/school — I own property in Pismo Beach I'm a landlord in Pismo Beach I'm a business owner in Pismo Beach — Other (please specify) A majority of respondents (63 percent) lived in Pismo Beach. More than a quarter of respondents (27 percent) said that they owned property in the city. Approximately 17 percent commute out of Pismo Beach for work or school while approximately 8 percent commuted into Pismo Beach for work or school. Nearly 13 percent of respondents work in the city. About six percent and eight percent were, respectively, landlords of Pismo Beach properties or owned businesses in the city. Nearly 17 percent marked "other" but without specification, indicating that they have a different type of relationship to the city distinct from the response options provided. 7) Wlbich of the following describes your housing situation and household composition? Check all that apply. A majority of respondents (66 percent) were in married households and approximately 40 percent of respondents had children in their household. Slightly more than 21 percent indicated they lived by themselves while only 4 percent lived with roommates. Equal amounts (about 2 percent each) lived in a household with a family member living with a disability or were experiencing homelessness. Community Needs 8) Doyou feel thatyour rentlmortgage in Pismo Beach is affordable based onyour income? 52 percent of respondents did not feel that they were able to afford their rent or mortgage while approximately 48 percent indicated the opposite. 9) Do you take advantage of any local, state, or federal housing programs to live in Pismo Beach? Very few respondents (approximately 4 percent) use any type of governmental programs to live in Pismo Beach. City of Pismo Beach 2020 -2028 Housing Element Page 1-5 �Yoll� Introduction A�SMO B�PL� 10) Wlbich programr doyou take advantage of ifyou indicated `yer"in Question 9 above? The survey field included an open-ended response for this question. Only one respondent responded and indicated "Shell Beach" as their response, which is undeterminable. 11) Haveyou needed to do any of the following as a result of the cost of living?This question posed a list of situations that could be applicable to those with housing insecurity in Pismo Beach. The available choices included: — Live temporarily with family or friends — Share housing with other families — Rent out rooms in your house — Move when you didn't want to — Live in an overcrowded unit — Experience a foreclosure — Some other action — None of the above Thirteen percent of respondents had moved out when they did not want to. Equal amounts (approximately 7 percent each) had either lived in an overcrowded housing unit or lived temporarily with family or friends. Slightly more than 4 percent had rented out rooms in their house,and equal amounts (approximately 2 percent)had to share housing with other families or had experienced a foreclosure. Nine percent of respondents had experienced some other type of adverse housing situation stemming from their cost-of-living. 12) Wlbat do you feel is the main concern for housing in Pismo Beach?Choose one. This question posed a list of concerns for the respondent to choose one from,which included: — Affordability of housing in Pismo Beach — Attainability of housing in Pismo Beach — Housing for those who work in Pismo Beach — Preserving community character Half of respondents felt that affordability of housing in the city was their primary concern. Preservation of community character was also ranked as a concern by approximately 30 percent of residents. Issues such as housing for employees in Pismo Beach or housing attainability were not an issue of concern for most respondents (13 percent and an approximate 7 percent,respectively). City of Pismo Beach Page 1-6 2020-2028 Housing Element (�(Y OF Introduction A�SMo 13) 1Vhat type of housing will hep Pismo Beach address the housing shortage? This question posed a list of options for the respondent to choose from,which included: — Apartments — Accessory dwelling units — Mobile home parks — Mobile/manufactured homes — Townhouses — Single family homes — Tiny or micro homes — A mix of housing types and sizes — Mixed use Half of respondents believed that a mixture of housing types and sizes would help address the city's housing shortage. Single-family homes were the second most popular housing type proposed by respondents to address the shortage (39 percent of respondents). Housing in mixed-use developments were ranked third by respondents (24 percent). Equal amounts (20 percent each) identified more accessory dwelling units and townhomes as a potential solution.All other options (i.e. apartments, mobile home parks, and mobile/manufactured homes) were favored by 22 percent of respondents. 14) If higher-density housing matches the City's existing character, should higher-density housing be available in all areas of the City? A majority of respondents (approximately 54 percent)believed that higher housing density should be ubiquitous in Pismo Beach whereas approximately 46 percent believe higher housing density should not be universally available. 15) Wlbat areas of the city are most appropriate for higher density housing? Respondents indicated the following areas would be suitable for higher-density housing: — Pismo Heights — Downtown and underutilized commercial areas — In select zones — Adjacent to City Hall — Areas away from tourism destinations, unless mixed-use multi-level in Downtown — Areas where traffic and parking would not become a problem — Near pier — Where room is available City of Pismo Beach 2020 -2028 Housing Element Page 1-7 �Yoll� Introduction A�sMo B�PL� — Near Price/Pomeroy — Areas already designated as R-2 and up Seven respondents indicated that no area would be suitable in Pismo Beach for higher-density housing with some expressing that there was no more room in the city for additional housing. 16) Wlbicb bousinggroups doyou think Pismo Beach needs to focus on and provide housing for? This question posed a list of options for the respondent to choose from,which included: — Seniors — Low income — Disabled — Households for children K-12 — Drug Rehabilitation housing — People who work in Pismo Beach — Homeless or recently homeless — First time homeowners More than half(approximately 51 percent) of respondents felt that the City should focus on opportunities for first-time homeowners. 46 percent of respondents and 44 percent of respondents felt that the city should also focus on people who work in Pismo Beach and households with children K-12 respectively. Approximately 40 percent felt that seniors should be focused on. Those demographics listed that did not garner as much response included low income groups (23 percent), those with disabilities (16 percent), homeless or recently homeless (nine percent) and those in need of drug rehabilitation (two percent). 17) Wlbicb area of Pismo Beach doyou think is most affordable?This question posed a list of options for the respondent to choose from,which included: — Downtown Core — Motel District — Pismo Heights — Pismo Marsh — Pismo Oaks — Shell Beach — Terrace Ave. — Toucan Terrace All the neighborhoods listed for this question garnered at least one respondent who felt it was the most affordable area of Pismo Beach.Thirty-three percent,the majority of respondents, felt that Toucan Terrace is the most affordable area of City of Pismo Beach Page 1-8 2020-2028 Housing Element �Yolll Introduction A�SMo B�PL� Pismo Beach.Following this was Pismo Marsh(26 percent of respondents).Nearly 12 percent of respondents each felt that Downtown Core and Motel District are the most affordable neighborhood. Nine percent of respondents felt that Pismo Oaks is the most affordable, approximately five percent of respondents felt that Pismo Heights is the most affordable, and two percent each feel that Shell Beach and Terrace Avenue are the most affordable neighborhoods in Pismo Beach. 18) Which area of Pismo Beach listed in question 17 do you think is least affordable? An majority of respondents (44 percent) felt that Shell Beach was the least affordable neighborhood in Pismo Beach. Twenty-three percent of respondents felt that Sunset Palisades is the least affordable neighborhood in Pismo Beach, while 14 percent felt it is the Downtown Core, 11 percent felt it is Pismo Heights, and seven percent feel that Pacific Estates is the least affordable neighborhood. Public Meetings [to be completed after public meetings are held] Public Hearings [to be completed after public hearings are held] City of Pismo Beach 2020 -2028 Housing Element Page 1-9 �Yoll� Introduction A�sMo B�PL� City of Pismo Beach Page 1-10 2020-2028 Housing Element Chap tee- 2 Community Profile Pismo Beach is in San Luis Obispo County and is bordered by the Pacific Ocean, Arroyo Grande, Grover Beach, Avila Beach, and rural lands. Located along the beach and cliffs with spectacular ocean views, the City is a popular vacation destination. According to the Pismo Beach Conference and Visitors Bureau, up to two and a half million tourists visit the City annually. Nov- A. Demographic Characteristics Population, employment, and household characteristics all affect the supply of and demand for housing in Pismo Beach. These characteristics are analyzed in this section to provide the basis for developing a successful housing program tailored to the needs of this community. 1. Population Growth Between 2010 and 2019, San Luis Obispo County experienced population growth, averaging approximately 4 percent for the entire county, including incorporated cities and unincorporated communities. As shown in Chart 2-1, the population in Pismo Beach experienced a slightly more robust growth rate of 8 percent,increasing from 7,655 residents in 2010 to 8,239 residents in 2019. Chart 2-1 Trends in Population Growth 2010 2019 Area Change Number Number Pismo Beach 7,655 8,239 8% Grover Beach 13,156 13,533 3% Arroyo Grande 17,252 17,876 4% San Luis Obispo County 269,637 280,393 4% Source:US Census 2000;California Department of Finance(DOF)E.5 Report 2011-2019 (HCD SLO County Housing Element Updated Data Profile 2019) City of Pismo Beach 2020-2028 Housing Element Page 2-1 �Yolll Community Profile �*Xo J511-IP- The San Luis Obispo Council of Governments (SLOCOG) published a 2050 Regional Growth Forecast for San Luis Obispo County in June 2017. Population, households, and jobs were projected through 2050 for low, mid, and high growth scenarios. Chart 2-2 reports the mid-growth scenario in Pismo Beach to be a projected 32 percent increase in population from 7,655 residents in 2010 to 10,079 residents in 2050. Chart 2-2 Population Growth Projections Percent Compound age Annual 2010 2015 2020 2025 2030 2035 2040 2045 2050 Change Growth 2010— Rate 2050 Pismo 7,655 8,068 8,642 9,122 9,486 9,753 9,901 9,989 10,079 32% <1% Beach San Luis Obispo 269,637 276,375 286,657 297,095 305,692 312,346 315,922 318,025 320,482 19% <1% County Source:SLOCOG 2017 2. Age Characteristics In 2018, Pismo Beach residents had a median age of 55 years, which is 15 years higher than the median age of 40 in the county overall. As shown in Chart 2-3, the number of residents below the age of 55 generally declined between 2010 and 2018, while the number of residents in the 55 to 64 age group increased. The number of residents 65 and above increased by 8 percent. This decrease reflects, in part, the high cost of housing in Pismo Beach, its large share of vacation homes, and affordability issues for most households like seniors who are on a fixed or reduced income, except higher-earning older households. The age group between 25 and 34 also increased by 32 percent. Chart 2-3 Trends in Population Age 2010 2018 Percentage Age Group Number Percentage Number Percentage Change of Persons of Total of Persons of Total < 15 812 11% 723 9% -11% 15-24 658 9% 630 8% -4% 25-34 811 11% 1077 13% 3304, 35-44 744 10%, 676 8% -9°/> 45-54 1,209 16`% 954 12% -21% 55-64 1,433 19%, 1552 19%, 8% 65+ 1,988 26% 2,504 31% 26% Total 7,655 100% LM 8,116 100% -- Source: US Census 2010, 2014-2018 American Community Survey, Five-Year Estimates (ACS 2014-2018:Table S0101). City of Pismo Beach Page 2-2 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ B. Economic Characteristics Economic characteristics play an important role in defining housing needs in Pismo Beach. Economic characteristics include the types of business, the occupations held by residents, and , the associated income. These characteristics " provide insight into the types of housing residents can afford and job-induced housing demand. 1. Business and Economy Pismo Beach's local economy is built around the tourism and retail industries. According to the 2013-2017 American Community Survey (ACS) and as shown in Chart 2-4, the City's industries that employ the most workers are educational services, healthcare, and social assistance (24 percent); arts, entertainment, recreation, and accommodation and food services (18 percent); and professional, scientific, and management, and administrative and waste management services (14 percent).Currently,these three industries comprise 56 percent of all those employed. All other industries employ less than 500 workers each. This distribution indicates that industry conditions are similar to those at the time of the previous housing element cycle since these three industries were also at that time the largest industries employing Pismo Beach's workforce. Chart 2-4 Industry Profile Number of Industry Employed Civilians Percentage 16 Years and Over 1. Educational services,and healthcare and social 953 24% assistance 2. Arts,entertainment,recreation,and accommodation 716 18% and food services 3. Professional,scientific,and management,and 560 14% administrative and waste management services 4. Retail trade V 442 11% 5. Finance and insurance,and real estate and rental and 252 6% leasing 6. Other services,except public administration 221 6% 7. Public administration 201 5% 8. Manufacturing 186 5% 9. Transportation and warehousing,and utilities 174 4% 10. Construction 128 3% 11. Wholesale trade 77 2% 12. Agriculture,forestry,fishing and hunting,and mining 55 1% 13. Information 47 1% Total 4,012 100% City of Pismo Beach 2020-2028 Housing Element Page 2-3 �Yolll Community Profile �*Xo Jolfz_ Source: 2013-2017 ACS: Table DP-03. (HCD SLO County Housing Element Updated Data Profile 2019) It can be difficult for lower-income employees working in retail, restaurants, and hotels to find affordable housing. The City's tourist marketing website (classiccalifornia.com) lists 31 hotels and motels with approximately 2,000 rooms and over 100 food and beverage establishments. According to the State of California Employment Development Department (EDD), the largest employers (1,000-4,999 employees) in central and southern San Luis Obispo County were in the industries of schools (universities and colleges), electric companies, and government offices. Many of these large employers are in San Luis Obispo,which is within 15 miles of Pismo Beach (see Chart 2-5). Chart 2-5 Largest Employers Employer Name Location Industry Number of Employees Cal Poly State University San Luis Obispo Schools-Universities& 1,000-4,999 Colleges Academic Pacific Gas&Electric Co San Luis Obispo Electric Companies 1,000-4,999 San Luis Obispo County San Luis Obispo Government Offices-County 1,000-4,999 EMS AMI Sierra Vista Radiology San Luis Obispo Physicians&Surgeons 500-999 Medi-Cal Eligibility Info San Luis Obispo Government Offices-County 500-999 Mental Marketing San Luis Obispo Advertising-Agencies& 500-999 Counselors Sierra Vista Regional Med San Luis Obispo Hospitals 500-999 Ctr Trust RCM San Luis Obispo Billing Service 500-999 Arroyo Grande Community Arroyo Grande Hospitals 250-499 Hosp Mustang Waterpark Arroyo Grande Water Parks 250-499 Pismo State Beach Oceano Parks 250-499 County Office of Education San Luis Obispo County Government- 250-499 Education Programs French Hospital Medical San Luis Obispo Hospitals 250-499 Ctr San Luis Obispo Sheriffs Dept San Luis Obispo Sheri��61 ff 250-499 Social Services Dept San Luis Obispo Government Offices-County 250-499 Source: EDD,America's Labor Market Information System (ALMIS) Employer Database,2020 1 st edition Employment projections provide insight into future number of jobs and are also an indicator of the demand for housing and population growth. Projections prepared by SLOCOG in 2017 predict that by 2050, Pismo Beach will have approximately 5,700 employed citizens,an increase of 16 percent from 2020 (see Chart 2-6). City of Pismo Beach Page 2-4 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ Chart 2-6 Pismo Beach Employment Projections Year 2010 2015 2020 2025 2030 2035 2040 2045 2050 Number 31992 4,898 4,919 5,121 5,309 5,456 5,555 5,627 5,705 Employed Source:SLOCOG 2017 2. Occupations and Wages As shown in Chart 2-7,the EDD produces an Occupational Employment and Wage Data spreadsheet by metropolitan statistical area (MSA) yearly that reports employment projections out to 2022 related to job growth for the San Luis Obispo- Paso Robles MSA in which Pismo Beach is included.During the 10-year period,new employment in the San Luis Obispo-Paso Robles MSA is expected to be concentrated in a variety of occupations. When comparing annual incomes to the median San Luis Obispo County income in 2019 for a family of four of $87,500, only three (or 12 percent of all people tabulated in the MSA) of the occupational groups are above this median income. Of these 22 occupational groups, the highest mean annual salaries are in the management and architecture and engineering occupations at$106,994 and$96,176. The lowest annual salary is in the food preparations and serving-related occupations at$28,682. Chart 2-7 San Luis Obispo-Paso Robles-Arroyo Grande Metropolitan Statistical Area Projected Employment by Occupation and Wage Mean Mean Estimated Projected Percentage Occupations of Residents Hourly Annual Employment Employment Change Wage Salary 2012 2022 Management Occupations $51.44 $106,994 5,720 9,160 60% Business and Financial $37.88 $78,787 4,220 4,980 18% Operations Occupations Computer and o Mathematical Occupations $36.77 $76,479 4,220 2,210 -48/o Architecture and $46.24 Engineering Occupations $96,176 2 070 2 560 24% Life,Physical,and Social o Science Occupations $40.44 $84,120 980 1,420 45/o Community and Social $29 91 $62,215 1,650 2,980 81% Services Occupations Legal Occupations $38.45 $79,969 690 730 6% Education,Training,and o Library Occupations $27.36 $56,904 8,150 8,760 7/o City of Pismo Beach 2020-2028 Housing Element Page 2-5 �Yolll Community Profile �*Xo Jolfz_ Mean Mean Estimated Projected Percentage Occupations of Residents Hourly Annual Employment Employment Change Wage Salary 2012 2022 Arts,Design, Entertainment,Sports,and $26.44 $55,011 1,100 2,120 93% Media Occupations Healthcare Practitioners .56 and Technical Occupations $94,772 7,180 7,000 -3%$45 Healthcare Support $19.09 $39,725 2,510 3,230 29% Occupations Protective Service $35.07 $72,938 3,470 3,110 -10% Occupations Food Preparation and Serving-Related $13.79 $28,682 14,770 13,680 -7% Occupations Building and Grounds Cleaning and Maintenance $16.38 $34,059 4,580 6,340 38% Occupations Personal Care and Service $14.17 $29,476 7,020 6,670 -5% Occupations Sales and Related $19.06 $39,633 13,040 15,990 23% Occupations Office and Administrative $19.48 $40,521 15,280 19,110 25% Support Occupations Farming,Fishing,and $14.01 $29,138 2,770 5,590 102% Forestry Occupations Construction and $27.04 $56,241 5,710 7,420 30% Extraction Occupations Installation,Maintenance, $24.56 $51,091 3,970 4,460 12% and Repair Occupations Production Occupations $21.03 $43,746 5,270 6,580 25% Transportation and Material Moving $18.34 $38,150 4,780 6,860 44% Occupations Source:EDD 2019 3. Work Commuter Patterns Commute distance is an important factor in housing availability and affordability and is also an indicator of the jobs/housing balance. Communities with extended commute distances generally have a poor jobs/housing balance, while those with short average commutes tend to have a strong jobs/housing balance.The burden of the additional costs of extended commuting disproportionately affects lower-income households,which must spend a larger portion of their overall income on fuel.This in turn affects a household's ability to afford decent housing without being overburdened by cost. Chart 2-8 indicates that most of Pismo Beach residents travel City of Pismo Beach Page 2-6 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ less than 30 minutes from home to work and only 5 percent travel an extended amount of time (60 or more minutes). The number of employed persons (4,000) divided by the number of households (3,834) shows that there is nearly one job for every household(98 percent).This analysis indicates that many of the jobs are within 20 miles of the City and that there is a strong jobs/housing balance, meaning that the available jobs are within relatively close distance to the employees' places of residence and commute doesn't place a large financial burden on the majority of City residents. Chart 2-8 Travel Time to Work Travel Time to Work Percentage Less than 30 minutes 77% 30 to 59 minutes 06 17% 60 or more minutes 5% Total 100% Source:ACS 2014-2018,Table B0803 4. Household Projections The SLOCOG report published in August 2017 updated earlier projections. Population, households, and jobs were projected through 2050 for low, mid, and high growth scenarios. Chart 2-9 reports the mid-growth scenario as a 13 percent increase in households from 4,250 in 2020 to 4,805 households in 2050. As shown in the chart, Pismo Beach is projected to have a larger percentage increase in the number of households than the rest of the county. This forecast was the result of a share allocation model to distribute the County population forecast to the incorporated cities, based on the SLOCOG accepted methodology. Chart 2-9 Household Projections Year 2010 2015 2020 2025 2030 2035 2040 2045 2050 Pismo 31834 4,025 4,250 4,442 4,582 4,686 4,742 4,774 4,805 Beach San Luis Obispo 102,016 103,964 108,169 112,611 116,112 118,788 120,215 121,049 121,826 County Source:SLOCOG 2017 City of Pismo Beach 2020-2028 Housing Element Page 2-7 �Yolll Community Profile J511-IP- 5. Household Income Household income is an important indicator of the ability to afford housing. Chart 2-10 shows resident income in Pismo Beach.According to the 2014-2018 ACS, the largest percentage of owners earned more than $150,000 (20 percent), which was also the case for renters (19 percent).According to the 2014-2018 ACS, for owners, the second-largest income group is $75,000 to $99,999 (33 percent),which is above the median income; as is the case for the third-largest group at 11 percent earning between $100,000 to $149,999. For renters, the second-largest income group is a moderate-income group, ranging from $75,000 to $99,000. This data indicates that Pismo Beach is not affordable to most people who make less than $50,000 per year (approximately 20 percent of the households in the chart). However, it should be noted that while this is the most current available data for Pismo Beach, the data set does have a high margin of error. Chart 2-10 Household Income by Tenure Characteristics Owner Renter Total Income Owner and Renter Groups Households Percentage Households Percentage Households Percentage <$10,000 79 3% 99 6% 178 4% $10,000— 57 2% 41 3% 98 2% $14,999 $15,000— 65 2% 31 2% 96 2% $24,999 $25,000— 143 5% 48 3% 191 5% $34,999 $35,000— 128 5% 126 8% 254 6% $49,999 $50,000— 229 9% 227 14% 456 11% $74,999 $75,000— 352 130%/,o 294 18% 646 15% $99,999 $100,000— $149,999 282 11% 161 10% 443 10% More than 1,292 4 %% 591 37% 1,883 44% $150,000 Total 2,627 ,618 100% 4,245 100% Source:ACS 2014-2018:Table B25118(HCD SLO County Housing Element Updated Data Profile 2019) Notes:The data in this table has a high margin of error. Due to rounding,some percentages may not total to 100. City of Pismo Beach Page 2-8 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ C. Housing Characteristics This section addresses housing characteristics in Pismo Beach. Housing factors evaluated include housing types, tenure and vacancy rates, age and condition, housing costs, and affordability. 1. Housing Type According to the California Department of Finance E-5 Population Estimates, Pismo Beach had 5,832 housing units in 2018, a 4 percent increase from 2013. As shown in Chart 2-11, single-family attached and detached residences comprise more than two-thirds of all housing.Mobile homes are a sizable percentage of the housing stock at 13 percent. Multiple-family housing comprises the remaining 18 percent of housing units in Pismo Beach. The total housing stock consisted of single-family detached housing units increased by 5 percent, followed by multiple-family (2 to 4) units,which increased by 5 percent and multiple-family (5+) units,which increased by 3 percent. No additional mobile homes or single-family attached housing units were added to the housing stock during the planning period.The ratios of the various types of housing remained nearly the same from 2013 to 2018. In 2017 and 2018, 54 units were entitled and 42 of those received building permits. All the units permitted were single-family residential except one that was an accessory dwelling unit (ADU). None of the units included lower-income housing. City of Pismo Beach 2020-2028 Housing Element Page 2-9 �Yolll Community Profile �*Xo J511-IP- Chart 2-11 Trends in Housing Type 2013 2018 Housing Type Units Percentage Units Percentage Single-Family Detached 3,238 58% 3,413 59% Single-Family Attached 618 11% 618 11% Multiple-Family 2-4 Units 502 9% 527 9% Multiple-Family 5+Units 497 9% 514 9% Mobile Homes 760 14% 760 13% Other(e.g.,RV Park) A na _ na na na Total Units 5,615 100% 5,832 100% Source:DOF 2013,2019 (HCD SLO County Housing Element Updated Data Profile 2019) *Some numbers in the chart have been rounded,affecting totals. 2. Tenure and Vacancy Housing tenure refers to the occupancy of a housing unit—whether the unit is owner-occupied or renter-occupied. Housing tenure is influenced by demographic factors (e.g.,household income, composition,and age of the householder) as well as the cost of housing. Chart 2-12 shows that between 2010 and 2017, the homeownership rate decreased from 61 to 60 percent. In addition,as a resort community,Pismo Beach has a significant amount of housing set aside for non-year-round occupancy. In 2017, as shown in Chart 2-13, the City had 1,233 vacant units (22 percent of total units and 80 percent of total vacant units) identified as seasonal, recreational, or occasional use. Chart 2-12 Trends in Housing Tenure 2010 2017 Tenure Number Percentage Number Percentage Occupied Units 3,834 69% 4,081 73% Owner 2,336 61% 2,429 60% Renter 1,498 39% 1,652 40% Vacant Units 1,751 31% 1,541 27% Total 5,585 100% 5,622 100% Source:ACS 2013-2017:Table B25002,B25004,B25007 (HCD SLO County Housing Element Updated Data Profile 2019) City of Pismo Beach Page 2-10 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ Chart 2-13 Vacant Units by Type Number Percentage For seasonal,recreational,or occasional use 1,233 80% For rent 92 6% Rented or sold,not occupied 89 6% For sale only 90 6% Other vacant 37 2% Total Vacant Units 1,541 100% Vacancy Rate: Owner-Occupied Housing — 3.5% Vacancy Rate:Renter-Occupied Housing — ° Source:ACS 2013-2017:Table 1325002,B25004(HCD SLO County Housing Element Updated Data Profile 2019) Vacancies play an important role in Pismo Beach. A certain number of vacant units help moderate housing costs,increase options for prospective residents,and provide an incentive for unit upkeep and repair. Optimal vacancy rates range from 1.5 to 2 percent for ownership units and 5 to 6 percent for rental units. According to the 2017 ACS (Tables B25002 and B25004), the vacancy rate is approximately 3.5 percent for owners and 5.1 percent for renters. Thus, both the owner and rental vacancy rates were higher than optimal for 2017. The high owner vacancy rate is likely attributable to Pismo Beach's high number of vacation rentals. 3. Housing Conditions As illustrated in Chart 2-14, Pismo Beach has a significant stock of older homes: 74 percent of homes are over 30 years old and 32 percent are over 50 years old. A general rule is that structures older than 30 years begin showing signs of deterioration and require reinvestment.Unless maintained,homes older than 50 years may require major renovations to ensure that plumbing and electrical systems, roofing, and insulation are sound. Older homes also have a higher prevalence of lead-based paint hazards.The rehabilitation need in the City has not changed significantly since 2014. In addition, home valuations have continued to rise since adoption of the last housing element, resulting in a general trend for homeowners to remodel or fully redevelop older units. In the last couple years, approximately seven code enforcement cases related to substandard housing were opened.All cases have since been resolved. City of Pismo Beach 2020-2028 Housing Element Page 2-11 �YOIII Community Profile �*Xo jolfz- Chart 2-14 Housing Age Characteristics Decade Built Number Percentage 2010-2019 324 5% 2000-2009 337 5% 1990-1999 1,047 16% 1980-1989 1,639 25% 1970-1979 1,110 17% 1960-1969 IL ' 579 9% 1950-1959 873 14% 1940-1949 wA ■ ' 301 5% 1939 or earlier 245 4% Total 6,455 100% Source:US Census 2000;City of Pismo Beach 2010 and 2019 *Note: Values for the years 2000 through 2009 and 2010 to 2019 are calculated based on the number of building permits approved by the City during the specified time frame.They do not reflect a census of physical structures built, permitted and not permitted, during this time. Therefore, this table may have totals and percentages that are slightly different from other data sources used in this document;these numbers should be interpreted as the best available data from the City. Despite the age of the housing stock, housing in Pismo Beach is generally well maintained in comparison to other communities. This may be due to the high household income levels and high housing values in the City. However, some exceptions apply. With the large number of homes occupied on a seasonal basis, some property maintenance may be postponed by the owners.Also, some absentee property owners purchased homes for later use, intending to rebuild or renovate upon their retirement. The number of substandard units is negligible. Two housing condition surveys were conducted in March 2009 (one for mobile homes,the other for all other units) to determine the number of units considered to be substandard in quality or in need of repair or replacement. City staff identified areas to survey.The survey was conducted through a windshield study that rated the physical condition of a unit in one of the following categories: — Foundation — Roofing — Siding/stucco — Windows — Electrical City of Pismo Beach Page 2-12 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ Units were evaluated by determining whether they needed minor, moderate, or substantial repair or if they were dilapidated and in need of replacement (see Chart 2-15).Although most of the units were found to be in sound condition,4 units were found to be in need of moderate repair and 40 units were found to be in need of minor repair (most of these were mobile homes that were considered to need repair due to the age of their construction materials). No units were found to need substantial repair or were dilapidated. Chart 2-15 Housing Conditions Survey Results Housing Type Minor Moderate Substantial Dilapidated Total Single 8 3 0 0 11 Mobile 30 1 01 0 31 Duplex 0 0 0 0 0 Multifamily 2 0 MJ 0 2 Total 40 4 0 0 44 Source:Lisa Wise Consulting,Inc.,San Luis Obispo County EOC,2009 According to the survey results,most housing in need of repair was near Wadsworth Street, Longview Avenue, and Placentia Avenue. A map showing the general locations of housing units found to need minor or moderate repair can be found in Appendix A. Seven code enforcement cases related to condition of a residential property were opened and addressed in the last two years.All of the issues were addressed,and the cases closed. Overall, the City's housing stock is in good condition. 4. Housing Costs Pismo Beach's shoreline, recreational amenities, and proximity to job centers have contributed to high housing prices. According to Trulia, from 2013 to 2017, the median price of homes in Pismo Beach increased significantly. As shown in Chart 2-16, home prices have increased on average since 2010. From 2012 to 2016, home prices increased by approximately 25 percent before decreasing slightly in 2017. According to Trulia, homes in Pismo Beach sold for a median price of$775,000 in 2017, well above the affordability of most first-time homebuyers and moderate- income households. As shown in Chart 2-17, the median home sales price in 2019 was $1,173,585, an increase of 21 percent from the 2018 median home sale price $967,680.These prices are not affordable to any income groups except a portion of those homebuyers making above-moderate income or higher than 120 percent. City of Pismo Beach 2020-2028 Housing Element Page 2-13 �YOIII Community Profile �*Xo J511-IP- Chart 2-16 Median Home Prices $1,000,000 $800,000 $600,000 $400,000 $200,000 2010 2011 2012 2013 2014 2015 2016 2017 Source:Trulia 2018 Chart 2-17 Median Home Selling Price for 2018 and 2019 Number of Average Days Median Selling Price Housing Type Homes Sold on Market 2018 2019 2018 2019 2018 2019 %Change Arroyo Grande 241 237 51 52 $765,818 $882,000 15% Avila Beach 9 19 56 96 $1,248,830 $1,453,496 16% Grover Beach 90 92 48 56 $531,744 $549,563 3% Nipomo 230 209 51 58 $670,631 $648,042 -3% Oceano 30 44 58 64 $500,233 $521,818 4% Pismo Beach 118 102 78 86 $967,680 $1,173,585 21% Source:SLO Association of Realtors 2019 Because of the high cost and high desirability of the for-sale housing stock in Pismo Beach, it is more financially feasible for many residents to rent. This may be due to the high vacancy rates and the seasonal occupancy of many rental homes. Chart 2- 18 shows housing rental units posted on Zillow in Pismo Beach during January 2020. As the chart indicates, there were mostly two- and three-bedroom rentals listed during the time of the survey and there were no ADUs available. Prices for rental listings typically ranged between $2,300 and $3,400, although the most expensive rental listed was a three-bedroom unit with a monthly rent of $4,000. The most affordable unit was a two-bedroom listing with a monthly rent of$1,800. City of Pismo Beach Page 2-14 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ Chart 2-18 Market Rental Rates by Unit Type Number of Average Lowest Highest Units Surveyed Studio N/A N/A N/A N/A ■ $2,338 $1,850 $2,500 2-bedroom 8 $2,474 $1,800 $3,000 7 $3,436 $2,495 $4,000 Source:Zillow.com,retrieved January 2020 Note:N/A=not applicable 5. Housing Affordability To estimate and plan for the supply of affordable housing, the California Department of Housing and Community Development (HCD) defines five income groups based on a percentage of the county median family income (MFI). For 2019, the MFI for San Luis Obispo County was $87,500 for a family of four. The household income groups are defined as follows: - Extremely low income earn less than 30 percent of county MFI - Very low income earn 31 to 50 percent of county MFI - Low income earn 51 to 80 percent of county MFI - Moderate income earn 81 to 120 percent of county MFI - Above moderate income earn 120+ percent of county MFI Household income limits are adjusted by household size. Chart 2-19 shows the 2019 income limits by household size for San Luis Obispo County. Chart 2-19 Household Income Limits by Household Size Persons per Household Income Categories 1 2 3 4 5 Extremely Low(<30%MFI) $18,900 $21,600 $24,300 $26,950 $30,170 Very Low(31%-50%MFI) $31,500 $36,000 $40,500 $44,950 $48,550 Low(51%-80%MFI) $50,350 $57,550 $64,750 $71,900 $77,700 Median(MFI) $61,250 $70,000 $78,750 $87,500 $94,500 Moderate (811/4-120%MFI) $73,500 $84,000 $94,500 $105,000 $113,400 Source:HCD 2019 City of Pismo Beach 2020-2028 Housing Element Page 2-15 �Yolll Community Profile �*Xo J511-IP- Housing affordability in Pismo Beach can be inferred by comparing the cost of renting or owning a home with the income levels of households of different sizes. Chart 2-20 shows the annual income ranges for extremely low-,very low-,low-,and moderate-income households and the maximum affordable payment based on the standard of 30 percent of monthly household income going toward housing costs. As illustrated in Chart 2-20,only above-moderate-income households can afford to purchase a single-family home, a condominium, or even a mobile home. Moderate- income households can afford some sizes of market-rate rentals (Chart 2-18). Extremely low-, very low-, and low-income households cannot afford to rent market-rate units without potential overpayment or overcrowding. Chart 2-20 Housing Affordability Extremely Low-Income(Households at 30%of Median Income) Household Size 1 2 3 4 Annual Income Limit $18,900 $21,600 $24,300 $26,950 Monthly Income $1,575 $1,800 $2,025 $2,246 Max.Monthly Gross Rent 1 $473 $540 $608 $674 Max.Purchase Price2 $27,066 $41,840 $56,614 $71,215 Very Low-Income (Households at 50%of Median Income) Household Size 1 2 3 4 Annual Income Limit $31,500 $36,000 $40,500 $44,950 Monthly Income $2,625 $3,000 $3,375 $3,746 Max.Monthly Gross Rent 1 $788 $900 $1,013 $1,124 Max.Purchase Price2 $96,011 $120,634 $145,257 $169,618 Low-Income(Households at 80%of Median Income) Household Size 1 2 3 4 Annual Income Limit $50,350 $57,550 $64,750 $71,900 Monthly Income $4,196 $4,796 $5,396 $5,992 Max.Monthly Gross Rent 1 $1,259 $1,431 $1,619 $1,798 Max.Purchase Price2 $199,165 $238,562 $277,959 $317,094 Moderate-Income (Households at 120%of Median Income) Household Size 1 2 3 4 Annual Income Limit $73,500 $84,000 $94,500 $105,000 Monthly Income $6,125 $7,000 $7,875 $8,750 Max.Monthly Gross Rent 1 $1,838 $2,100 $2,363 $2,625 Max.Purchase Price2 $325,827 $383,280 $440,734 $498,188 Source: 2019 Income Limits, HCD. Monthly mortgage calculation: http://www.realtor.com/home-finance/financial-calculators/home-affordability-calculator.aspx? Notes:1 Affordable housing cost for renter-occupied households assumes 30%of gross household income,not including utility cost. 2Afooddable housing sales prices are based on the following assumed variables:approximately 20% down payment, 30-year fixed-rate mortgage at 4.49% annual interest rate (Zillow affordable payment calculator). City of Pismo Beach Page 2-16 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ 6. Housing Problems A continuing priority of communities is maintaining quality of life. A key measure of quality of life is the extent of housing problems. According to the federal government, the term "housing problems" refers to overpayment, overcrowding, and when residential units lack sufficient kitchens or plumbing.The Comprehensive Housing Affordability Strategy (CHAS) was developed by the US Department of Housing and Urban Development (HUD) to assist jurisdictions in writing their HUD-required consolidated plans. The CHAS data provides information about housing problems in Pismo Beach. According to this data (Chart 2-21), there were 310 owner households and 345 renter households earning less than 50 percent of the median family income in the City in 2016 with at least one of these housing problems. Approximately 45 percent of these lower-income renter-occupied households were identified as having at least one of four housing problems (which include incomplete kitchen facilities,incomplete plumbing facilities, more than one person per room, and a cost burden greater than 30 percent). Approximately 38 percent of lower-income owner-occupied households experienced at least one of those four housing problems. The most common housing problem is overpayment, which affects approximately 28 percent of the lower-income population, while incomplete kitchen or plumbing facilities and overcrowding is far less common. It is important to note that, similar to ACS data, the CHAS dataset uses small samples and is subject to large margins of error and therefore may have totals and percentages that are slightly different than other data sources used in this document. Chart 2-21 Housing Problems for All Households Total Total Total Renters Owners Households Household income< 30%MFI with any housing 165 60 225 problem Household income>30%to< 50%MFI with any 180 250 430 housing problem Total Households < 50%MFI)with any housing 345 310 655 problem Percentage of households (< 50%MFI)with any o 0 0 housing problem 45/0 38/0 41/o Source:CHAS 2012-2016 Housing overpayment refers to spending more than 30 percent of income for housing costs. Chart 2-22 shows the prevalence of housing overpayment in Pismo Beach by tenure. As the chart shows, 21 percent of lower-income renters overpay for housing, compared to 17 percent of lower-income homeowners. City of Pismo Beach 2020-2028 Housing Element Page 2-17 �Yolll Community Profile �*Xo J511-IP- Chart 2-22 Housing Overpayment in Pismo Beach Total Household Characteristics Number Percentage of Total Households Total occupied units (households) 3,870 100% Total renter households 1,750 45% Total owner households 2,120 55% Total lower-income (0-80%of HUD Area Median 1,900 49% Family Income (HAMFI)households Lower-income renters 820 21% Lower-income owners 655 17% Extremely low-income renters 290 7% Extremely low-income owners 135 3% Lower-income households severely overpaying u (paying more than 50%) 770 20/o Lower-income renter households severely overpaying 460 12% Lower-income owner households severely overpaying 310 8% Extremely low income(ELI) (0-30%of HAMFI) 310 8% ELI renter households severely overpaying 215 6% ELI owner households severely overpaying 95 2% Lower-income households overpaying(paying more 1 085 28% than 30%) ' Lower-income renter households overpaying 705 18% Lower-income owner households overpaying 380 10% Total households overpaying— 2,165 41% Total renter households overpaying 1,380 24% Total owner households overpaying 785 17°/ Source:CHAS 2012-2016 (HCD SLO County Housing Element Updated Data Profile 2019) Escalating housing prices have edged out lower-and moderate-income families who can no longer afford housing in the community. Residents may also choose to pay more for housing,leaving limited financial resources to pay for other necessities. The US Census Bureau defines overcrowding as when a housing unit is occupied by more than the equivalent of one person per room (not including kitchens and bathrooms).A typical home might have three bedrooms,a living room,and a dining room, for a total of five rooms. If more than five people were living in the home,it would be considered by the Census Bureau to be overcrowded. Because some households require less "space"per person,there is some question of whether units with slightly more than one person per room really have an overcrowding problem. In most cases,units with more than 1.01 persons per room are overcrowded. Units with more than 1.50 persons per room are considered highly overcrowded and City of Pismo Beach Page 2-18 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ should be recognized as a significant housing problem. Overcrowding can occur when housing costs are so high relative to income that families double up or reside in smaller units,which tend to be more affordable, to devote income to other basic living needs. Overcrowding also tends to result in accelerated deterioration of homes,a shortage of off-street parking,increased strain on public infrastructure,and additional traffic congestion. As illustrated in Chart 2-23, only 17 households (less than 1 percent) in Pismo Beach lived in overcrowded conditions (owners and renters).All 17 of the overcrowded households were renter households and all were experiencing severe overcrowding(more than 1.5 persons per room). Overcrowding is not a significant issue in Pismo Beach. Chart 2-23 Overcrowded Households Persons per Room Owner-Occupied Renter Total Percentage Households Households Households 1.00 or less 2,429 1,635 4,064 99% 1.01 to 1.50 1 0 0 0 0% 1.51 or more 0 17 17 <1% Total = 2,429 1,652 4,081 100% Source: ACS 2013-2017, Table B25014 (HCD SLO County Housing Element Updated Data Profile 2019) 7. Extremely Low-Income Households Extremely low-income households are defined as earning 30 percent or less of the area median income. This group is one of the neediest in the population because its household incomes are so low and require the greatest housing subsidies in order to make housing affordable. Based on the 2014-2018 ACS, 454 extremely low-income households reside in Pismo Beach. Per HCD guidelines, 50 percent of San Luis Obispo County's very low-income Regional Housing Needs Allocation (RHNA) number qualifies as extremely low income. The RHNA for Pismo Beach estimates the need for 113 very low-income housing units between 2019 and 2028, of which, 50 percent should be for extremely low-income households. Therefore, it is projected that an additional 56 extremely low-income households will be added to the City. Most,if not all,extremely low-income households require rental housing. Extremely low-income households likely face housing problems, such as overpaying, overcrowding, and/or accessibility issues as a result of their limited incomes. Also, many of the extremely low-income households are in a special needs category (disabled,seniors,large households,or female-headed households) and some require supportive housing services. Most families and individuals receiving public assistance, such as social security or disability insurance, are considered extremely low-income households. Many minimum-wage workers would also be considered extremely low-income households. City of Pismo Beach 2020-2028 Housing Element Page 2-19 �Yolll Community Profile �*Xo Jolfz_ 8. At-Risk Units State legislation (Chapter 1451, Statutes of 1989) requires that all housing elements include an analysis of at-risk housing in the jurisdiction and, if necessary, the development of programs to preserve or replace those assisted housing units. Many subsidized units are multifamily rental units that provide rental housing at below- market rates. If these units cease to be assisted, the owners of the properties may increase unit rents to market rates. Should this occur,low-income housing might be lost, making it difficult for the City to meet its goals for providing adequate affordable housing. The multifamily units to be considered are any units that were constructed using various federal assistance programs, state or local mortgage revenue bonds, redevelopment tax increments, in-lieu fees or an inclusionary housing ordinance, or density bonuses. Low-income multifamily housing is considered to be at risk if it is eligible to convert to non-low-income or market-rate housing due to (1) the termination of a rental subsidy contract; (2) mortgage prepayment; or (3) the expiration of affordability restrictions. The time period that is to be considered in making this determination is the 10-year period following the beginning of the Housing Element planning period (from December 31, 2020, to December 31, 2030). The City has two affordable-housing projects owned by Peoples'Self-Help Housing, the Sea Haven Apartments,which provides 12 units of affordable housing for lower- income households, and the Pismo Creek Bungalows, which has 14 units of affordable housing for very low-income households. In October 1998, Sea Haven Apartments were rehabilitated with financing from HCD Home and local Community Development Block Grant (CDBG) funds. The affordability controls extend for 30 years, from 1998 through 2027. Thus, the 12 units at Sea Haven Apartments are at risk of conversion during the planning period. Communication with Peoples' Self-Help Housing indicates they plan to work to extend the 2027 deadline for Sea Haven Apartments and maintain affordability. However, should the project become at risk, the City will consider providing technical and financial assistance to continue the affordability controls on the project. The Pismo Creek Bungalows were completed in 2012 with financing from the California Tax Credit Allocation Committee,City of Pismo Beach,Pismo Beach Redevelopment Agency, and private sponsors. The tax deed restriction is in place for 55 years, through 2067. There are no other units that are considered at risk for conversion (see Program HE-19). Chart 2-24 lists the units in Pismo Beach that are assisted and potentially at risk during the 10-year period. City of Pismo Beach Page 2-20 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ Chart 2-24 Assisted Housing Inventory, Pismo Beach, 2018 Project Tenant Total Total Funding Expiration Assisted Name Type Units Units Sources Date Sea Haven Low and Apartments Very Low 12 12 HOME,CDBG 2027 Income California Tax Credit Allocation Committee,City Pismo Creek Very Low of Pismo Beach,Pismo Bungalows Income 14 14 Beach Redevelopment 2067 Agency,Merritt Community Capital Corporation,and Wells Fargo Bank. Totals 26 26 Source:Peoples'Self-Help Housing and California Housing Partnership Corporation 2020 Loss of Assisted Housing From time to time, restricted units lose their affordability controls or subsidies and revert to market rates. As shown in Chart 2-24, in Pismo Beach one of the two assisted projects is at risk of conversion before December 31, 2030, Sea Haven Apartments,with a total of 12 assisted units. Preservation and Replacement Generally, the cost of preserving assisted housing units is estimated to be significantly lower than replacing units through new construction. Preserving units entails covering the difference between market rates and assisted rental rates. New construction tends to be less cost efficient because of the cost of land and labor, which is often a limiting factor in the development of affordable housing. To maintain the existing affordable housing stock,the City may either work to preserve the existing assisted units or replenish the affordable housing inventory with new units. Preservation Rental subsidies using non-federal(state,local,or other) funding sources can be used to maintain the affordability of the 12 at-risk units. These rent subsidies can be structured to mirror the federal Housing Choice Voucher (Section 8) program. Under Section 8, HUD pays the difference between what tenants can pay (defined as 30 percent of household income) and what HUD estimates as the fair market rent on the unit. In San Luis Obispo County, the 2020 fair market rent is determined to be $1,657 for a two-bedroom unit. City of Pismo Beach 2020-2028 Housing Element Page 2-21 �Yolll Community Profile �*Xo J511-IP- The feasibility of this alternative is highly dependent on the availability of unit type and other funding sources necessary to make rent subsidies available, and the willingness of property owners to accept rental vouchers if they can be provided.As indicated in Chart 2-25, the total cost of subsidizing the rents for all 12 at-risk units is estimated at$9,084 per month or$109,008 annually. Chart 2-25 Estimated Costs of Preserving At-Risk Units Total Fair Very Low Affordable Monthly Total Unit Size Units Market Income Monthly per Unit Monthly Rent (50%AMI) Rent Subsidy Subsidy Two bedrooms 12 $1,657 $36,000 $900 $757 $9,084 Source:HUD 2020 Note:Exact division of current at-risk units is not available so very low income was used to result in a more conservative(higher)dollar amount estimate. Re lacement The construction of new low-income housing units is a means of replacing the 12 at-risk units. The cost of developing housing depends on a variety of factors, including density, size of the units (i.e., number of bedrooms), location, land costs, and type of construction.Based on cost estimates gathered from Coastal Community Builders, a developer of multifamily structures in San Luis Obispo County, a typical single-story multifamily building in Pismo Beach of approximately 32,000 square feet and with 900-square-foot apartments has a cost of $260 per square foot for construction with prevailing wage. This cost per square foot would result in a cost per unit for 900-square-foot units of$234,000. Using this general estimate, it would cost approximately $2.8 million to develop 12 new units to replace the at-risk units. Given the City's limited financial resources for housing development, development of replacement housing must rely on partnerships with nonprofit or for-profit housing developers or other public entities. Acquisition Another option would be for a nonprofit organization to purchase an existing multifamily complex, rather than build a new one, lowering the per-unit cost significantly. A survey done in June 2018 showed that multifamily units in Pismo Beach were selling for between an average of $514,950 (one-bedroom units) and $751,500 (three-bedroom units). Cost Comparisons The above analysis attempts to estimate the cost of preserving the at-risk units under various options. The cost of acquiring Sea Haven Apartments and transferring ownership to a nonprofit organization is the second highest of the three quantified City of Pismo Beach Page 2-22 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ options (starting at$2.8 million to replace 12 units based on the lowest market price identified). In comparison,the annual costs of providing rental subsidies required to preserve the 12 assisted units are relatively low ($109,008). However, long-term affordability of the units cannot be ensured in this manner. The option of constructing 12 replacement units has the highest cost(ranging from$6.2 million to $9 million). The best option to preserve the at-risk units appears to be the purchase of affordability covenants. Resources for Preservation The types of resources needed for preserving at-risk units fall into three categories: (1) financial resources available to purchase existing units or develop replacement units; (2) entities with the intent and ability to purchase and/or manage at-risk units; and (3) programs to provide replacement funding for potentially lost Housing Choice Voucher program rent subsidies (previously known as the Section 8 program). Public Financing/Subsidies—A variety of federal, state, and local programs are available for potential acquisition, subsidy, or replacement of at-risk units. Due to both the high costs of developing and preserving housing and limitations on the amounts and uses of funds, a variety of funding sources would be required. The following summarizes financial resources available to Pismo Beach for preservation of assisted, multifamily rental housing units. The Housing Choice Voucher (Section 8) Program is another affordability option that individuals may apply for through the San Luis Obispo County Housing Authority. Section 8 increases affordable housing choices for very low-income households by allowing families to choose privately owned rental housing. The public housing authority generally pays the landlord the difference between 30 percent of household income and the housing authority-determined payment standard—about 80 to 100 percent of the fair market rent. The rent must be reasonable.The household may choose a unit with a higher rent than the fair market rent and pay the landlord the difference or choose a lower-cost unit and keep the difference. Section 8-supported housing may be either project-based for an entire apartment building or subsidies may be provided in the form of vouchers for individual, independent units.The City does not have any apartment buildings dedicated solely to Section 8 assistance. The property owner can opt to terminate the Section 8 contract ("opt out") or renew the contract. The primary incentive for Section 8 property owners to opt out of their regulatory agreement is monetary. Market rents have risen to the point at which many property owners can earn more by prepaying their government assistance, even if they have to borrow money at market interest rates. City of Pismo Beach 2020-2028 Housing Element Page 2-23 �Yolll Community Profile �*Xo Jolfz_ Federal Program - CDBG - HOME Investment Partnership - Housing Choice Voucher (Section 8) Program - Section 811/202 Program - HUD Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA) State Programs - California Housing Finance Agency (CHFA) Multiple Rental Housing Programs - Low-Income Housing Tax Credit (LIHTC) - California Community Reinvestment Corporation (CCRC) Nonprofit Entities Nonprofit entities serving the county can be contacted to gauge their interest and ability in acquiring and/or managing units at risk of conversion. A partial listing of entities with resources in San Luis Obispo County follows: - Peoples' Self-Help Housing - Habitat for Humanity - Housing Trust Fund D. Special Housing Needs Certain groups encounter difficulty finding affordable housing due to special circumstances. Special circumstances may be related to a person's employment type and income,family characteristics,medical condition or disability,and/or household characteristics.The housing needs for each group are evaluated and major programs available to address their housing and services needs are identified. 1. Senior Households As illustrated in Chart 2-26, 1,531 Pismo Beach households (38 percent) were headed by seniors (persons age 65 years and older)in 2017,which is an increase from 34 percent in 2010. Seniors typically have special needs due to disabilities,healthcare needs, and fixed income. With respect to their housing tenure, 255 senior households rent homes and 1,276 senior households own their homes.An additional number of seniors live with family members or in a retirement home. City of Pismo Beach Page 2-24 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ Chart 2-26 Senior Households Householder by Owner Renter Total Age Number Percentage Number Percentage Number Percentage Total 65 and over 1,276 53% 255 15% 1,531 38% 65 to 74 years 635 26% 166 10% 801 20% 75 to 84 years 450 19% 37 2% 487 12% 85 years and over 191 8% 52 3% 243 6% Total 64 and under 1,153 47% 1,397 85% 2,550 62% Total(all ages) 2,429 100% 1,652 4,081 100% Source: ACS 2013-2017: Table B25007 (HCD SLO County Housing Element Updated Data Profile 2019) Maintaining and repairing a residence with a fixed retirement income can be problematic.Renters face many of the same housing affordability issues,except they are more susceptible to displacement due to changing rental costs. As illustrated in Chart 2-27, senior households are slightly less well off than the general Pismo Beach population. Approximately more than half of all senior households earn very low and low incomes, and the other half earn moderate and above-moderate incomes. Chart 2-27 Senior Households by Income Group Income Group Number Percentage Very Low($0 to <$34,999)' 528 34% Low($35,000 to <$59,999)hE 307 20% Moderate and Above Moderate(>$59,999) 711 46% Source:ACS 2013-2017 (1-year):Table B19037 Note: 1.ACS income ranges are different than 2015 HUD income limits. For this table,because ACS data is used,the income ranges are based on ACS ranges and not HUD ranges. 2. Large and Female-Headed Households State law identifies large families with children and female-headed households as having special needs due to their income challenges, childcare expenses, and need for affordable housing.Large households are defined as households with more than five persons. Large family households are considered a special needs group because there is typically a limited supply of adequately sized housing to accommodate their needs. The more persons in a household,the more rooms are needed to accommodate that household. Specifically, a five-person household would require three or four bedrooms, a six-person household would require four bedrooms, and a seven- person household would require four to six bedrooms.In some circumstances where City of Pismo Beach 2020-2028 Housing Element Page 2-25 �YOIII Community Profile �*Xo J511-IP- the housing market does not meet the housing needs of large households, overcrowding can result. As discussed previously and illustrated in Chart 2-23, overcrowding is not a significant housing issue in the City, with overcrowded situations representing less than 2 percent of households. Households with children under 18 years of age headed by a single parent are another group that may have special needs for housing. The housing needs of a female- headed household range from affordability of a home to availability of nearby services, such as licensed daycare to support individual parents who work. Nationwide, housing trends such as co-housing are increasingly being implemented that specifically allow groups such as female-headed households, the elderly, and families to help support one another. Co-housing typically advocates affordable shared housing with community resources available, such as group dining facilities, shared maintenance, and daycare. There is one co-housing community near Pismo Beach in Oceano. According to the ACS 2013-2017, Pismo Beach is home to 203 female-headed households and 87 large households with five or more members. These groups represent 5 and 2 percent of the total households in Pismo Beach, respectively. These are relatively small percentages of the overall population, indicating that neither one of these special-needs groups has the greatest need currently in Pismo Beach. However, the relatively small presence of female-headed households and large households may indicate a lack of housing options in the City, particularly for large households, and these types of households may live in other communities in the area. Of the 203 female-headed households, 13 live under the poverty level. For large households, 81 percent own homes and 19 percent rent. 3. Persons with Disabilities Persons with disabilities have special housing needs because of employment and income challenges, a need for accessible and appropriate housing, and higher healthcare costs. A disability is defined broadly by the Census Bureau as a physical, mental, or emotional condition that lasts over a long period of time and makes it difficult to live independently. The ACS defines six non-work disabilities: hearing, vision,cognitive,ambulatory,self-care,and independent living difficulty. Chart 2-28 shows the number and percentage of persons with disabilities in the City. City of Pismo Beach Page 2-26 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ Chart 2-28 Persons with Disabilities by Type Disability by Type and Age Group Number Percentage Total disabilities for people 5 to 64 years 714 39% Hearing Difficulty 125 18% Vision Difficulty 93 13% Cognitive Difficulty 142 20% Ambulatory Difficulty 180 25% Self-Care Difficulty 44 6% Independent Living Difficulty 130 18% Total disabilities for people 65 years and over 1,110 61% Hearing Difficulty 293 26% Vision Difficulty 62 6% Cognitive Difficulty 171 15% Ambulatory Difficulty 236 21% Self-Care Difficulty 113 10% Independent Living Difficulty 235 21% Total disabilities for all ages 1,824 100% Source:2013-2017 ACS:Table S1810(HCD SLO County Housing Element Updated Data Profile 2019) As shown in Chart 2-29, Pismo Beach has 759 non-institutionalized disabled residents, representing 16 percent of the total population. Of these residents, 15 percent are employed with a disability, 3 percent are not employed with a disability, and 81 percent are seniors (older than 65). Chart 2-29 Employment Status of Persons with Disabilities Number Percentage Age 5-64,Employed Persons with a Disability 117 15% Age 5-64,Not Employed Persons with a Disability 25 3% Persons Age 65+with a Disability 617 81% Total Persons with a Disability 759 100% Source: ACS 2013-2017: Table C18120, S1810 (HCD SLO County Housing Element Updated Data Profile 2019) Disabled persons have special needs as many earn low incomes, have higher healthcare costs, and are often dependent on supportive services. Living arrangement needs for disabled persons depend on the severity of the disability. Many persons live independently or with other family members. To maintain independent living, disabled persons may need special housing design features, City of Pismo Beach 2020-2028 Housing Element Page 2-27 �Yolll Community Profile �*Xo J511-IP- income support, and in-home supportive services. There are no residential care facilities in Pismo Beach. Persons with Developmental Disabilities Senate Bill (SB) 812 requires the City to include the needs of individuals with a developmental disability within the community in the special housing needs analysis. According to Section 4512 of the 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. Many developmentally disabled persons can live and work independently in 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 California 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, 4 developmental centers,and 2 community-based facilities.The Tri-Counties Regional Center is 1 of 21 regional centers in California that provides point of entry to services for people with developmental disabilities. The center is a private, nonprofit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. Chart 2-30 provides information about Pismo Beach's population of developmentally disabled persons; Chart 2-31 provides information about those persons' place of residence. The two charts may not match as they are different surveys. Chart 2-30 Developmentally Disabled Residents by Age Zip Code 0-17 Years 18+Years Total 93448&93449 >16 19 >35 Source:HCD SLO County Housing Element Updated Data Profile 2019 City of Pismo Beach Page 2-28 2020-2028 Housing Element LDS Y O.c - Community Profile A�SMO B�PLZ Chart 2-31 Developmentally Disabled Residents by Residence Type Community Home Parent/ Independent Zip Code Care Guardian Living Other Total 93448,93449 0 >29 <11 0 >29 Source:HCD SLO County Housing Element Updated Data Profile 2019 A number of housing types are appropriate for people living with a developmental disability: rent-subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, those that accept Section 8 vouchers in market rate rental housing, HUD housing, and SB 962 homes (adult residential facilities for persons with special healthcare needs).The design of housing-accessibility modifications,the proximity to services and transit, and the availability of group living opportunities represent some of the considerations that are important in serving this special-needs group. Incorporating "barrier-free" design in all new multifamily housing (as required by California and federal fair housing laws) is especially important to provide the widest range of choices for disabled residents. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income. In order to assist in the housing needs for persons with developmental disabilities, the City will continue to implement programs to coordinate housing activities and outreach with the Tri-Counties Regional Center and encourage housing providers to designate a portion of new affordable housing developments for persons with disabilities, especially persons with developmental disabilities, and pursue funding sources designated for persons with special needs and disabilities. Program HE-9 is proposed to specifically address the needs of the developmentally disabled. 4. Homeless Persons Homelessness is a pressing issue in San Luis Obispo County. In 2019, the County's Continuum of Care(CoC)point-in-time count documented 1,483 homeless persons, of which, 298 were chronically homeless. The chronically homeless are those persons who have experienced homelessness for at least a year or have experienced four episodes of homelessness over the last three years. A comparison of point-in- time homeless counts shows a 2 percent decrease in the number of homeless in the county between 2015 and 2019 (Point-In-Time Census 2019). Of the 1,483 homeless, 79 percent were unsheltered. This survey also reported an estimated five homeless persons (unsheltered) in Pismo Beach. Throughout the larger South County region identified in the 2019 Point-In-Time Census,there were 211 persons counted. Approximately 33 percent of those counted were sleeping on the street in communities in South County and nearly 29 percent were sleeping in cars, vans, or recreational vehicles (RVs). Only an approximate 23 percent had been sheltered in emergency or transitional housing. City of Pismo Beach 2020-2028 Housing Element Page 2-29 �Yolll Community Profile �*Xo J511-IP- The homeless population in San Luis Obispo County consists of both families and individuals. In 2019, the CoC documented 222 homeless persons in 67 family households with children.Beyond the need for housing,they are likely to have other needs, such as support services. As there is no homeless shelter in Pismo Beach, the Police Department refers homeless persons to the 40 Prado Homeless Services Center in San Luis Obispo, the closest homeless shelter to Pismo Beach in the county.The shelter provides 150 beds nightly year-round. 5. Farmworkers Farmworkers are defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor.Permanent farmworkers work in the fields, processing plants, or support activities on a year-round basis. When workloads increase during harvest periods, the labor force is supplemented by seasonal or migrant labor. Farmworkers' housing needs arise from their limited income and unstable nature of their employment. Although the county is in a large agricultural region,Pismo Beach is within the urban boundary of coastal communities, which is not suitable for agricultural uses. Agricultural zones, however, surround the City, with wine grape production to the east and broccoli and strawberry production 2 miles south. According to the US Department of Agriculture 2017 Census of Agriculture, there were approximately 1,100 farms employing approximately 11,400 farmworkers throughout San Luis Obispo County.It is unknown how many of these farmworkers reside within Pismo Beach.The 2013-2017ACS,however,indicates that the agricultural,forestry,fishing and hunting, and mining sector employs an estimated 55 laborers in Pismo Beach. How many of these laborers work specifically on farms is not clear. Nonetheless, the need to address farmworker housing in Pismo Beach is relatively small compared to other more agricultural communities in San Luis Obispo County or other communities in California. City of Pismo Beach Page 2-30 2020-2028 Housing Element Chap tee- 3 Housing Constraints Government policies and regulations impact the price and availability of housing and the provision of affordable housing. Constraints include residential development standards, fees and taxes, and permitting procedures. Providing infrastructure and services also increases the cost of producing housing. One of the greatest constraints to affordable housing production is the chronic shortage of state and federal financial assistance. This chapter addresses potential nongovernmental and governmental constraints and focuses on mitigation options available to the City. A. Market Constraints Land costs,construction costs,and market financing are major variables in the cost of housing and hinder the production of new affordable housing. Although many constraints are driven by market conditions, jurisdictions have some leverage in instituting policies and programs to alleviate the constraints. 1. Land and Construction Costs Land costs in Pismo Beach are relatively high due to the demand for housing,lack of vacant land,and proximity to the ocean.A review of Trulia.com in April 2020 showed eight vacant residential lots for sale in the City. Of that sample, those in single-family or mixed-use residential neighborhoods were selling for $28 to $74 per square foot. Beachfront lots were selling at much higher rates,ranging from$41 to$278 per square foot. As a result, developers will have an incentive to build higher-priced housing to recoup the cost of land and construction, unless land cost is mitigated with public assistance. Construction costs are those incurred while constructing a dwelling unit.As with other land development costs, construction costs vary. Important determinants of construction costs include the amenities built into the unit, materials used, the prevailing labor rate, and the difficulty of building on the site. Building-cost.net is a housing construction cost resource that calculates the total estimated cost of building a new home (land costs not included). A calculation run on Building-cost.net in April City of Pismo Beach 2020-2028 Housing Element Page 3-1 �Yoll� Constraints Analysis A�SMO B�PL� 2020 for the Pismo Beach region resulted in an estimated cost of$218,511 (or $146 per square foot) for a 1,500-square-foot single-family home of good quality construction with four walls, an attached garage, central heating and air, and average building materials. However,homes being built in Pismo Beach are typically high-end custom homes, which cost significantly more. Multiple-family residences, such as apartments, can generally be constructed at a slightly lower cost than single-family residences. 2. Availability of Financing The availability of financing affects the ability to purchase or improve homes.In Pismo Beach, 102 applications for conventional mortgage home loans for purchases and rehabilitations were received in 2014, of which, 69 percent were approved by lenders and accepted by applicants (see Chart 3-1).The remainder of applications were denied, withdrawn, closed due to incompleteness, or approved but not accepted by the applicants. Pismo Beach has historically had relatively high housing costs.In 2018,there were 181 conventional and 9 government-assisted home loans sought. All government-assisted loans sought in 2018 were for home purchase.Last time this data was queried,in 2014, there were 11 government-assisted loans sought. This could indicate that there is a decrease in lower-priced homes that would be a good fit for government-assisted loan programs. There were 169 conventional home purchase loans sought in 2018, as opposed to 95 in 2014, which suggests that changes in interest rates may have made conventional loans more accessible for home purchasers. Chart 3-1 Disposition of Home Loans Home Purchase Home Improvement Total Purchase and Improvement Loan Type Total Percentage Total Percentage Total Percentage Apps.* Originated Apps. Originated Apps. Originated Conventional 169 59% 12 50% 181 59% Government 9 0 0% 9 44% assisted I JhL Source:Home Mortgage Disclosure Act 2018 Notes:*Apps. =applications Data is compiled by census tracts,which do not match the City boundaries precisely. Data provided includes nearly the entire City,plus an adjacent area which is large but sparsely populated. Upper-income households (annual income of$96,720 or more) filed 80 percent of the applications for home purchase loans, an expected result given the high price of housing in Pismo Beach. The approval rate was 69 percent among upper-income applicants and 50 percent for lower- and moderate-income households. City of Pismo Beach Page 3-2 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMo The cost of borrowing money to finance the construction of housing or to purchase a house affects the amount of affordably priced housing in Pismo Beach. Fluctuating interest rates can eliminate many potential homebuyers from the housing market or render infeasible a housing project that could have been developed at lower interest rates. When interest rates decline, sales generally increase. The reverse has been true when interest rates increase. Chart 3-2 illustrates interest rates as of April 28, 2020. The chart presents both the interest rate and the annual percentage rate (APR) for different types of home loans. The interest rate is the percentage of an amount of money that is paid for its use for a specified time,and the APR is the yearly percentage rate that expresses the total finance charge on a loan over its entire term. The APR includes the interest rate, fees,points, and mortgage insurance and is therefore a more complete measure of a loan's cost than the interest rate alone. However, the loan's interest rate, not its APR, is used to calculate the monthly principal and interest payment. Chart 3-2 Interest Rates Product Interest Rate APR Conforming and FHA Loans 30-Year Fixed Rate 3.375% 3.458% _ 15-Year Fixed Rate 2.750% 2.861% 7/1 ARM 3.000% 3.239% 5/1 ARM FHA 3.125% 3.257% Jumbo Loans:Amounts that exceed conforming loan limits 30-Year Fixed-Rate Jumbo 3.250% 3.274% 15-Year Fixed-Rate Jumbo 3.125% 3.150% 7/1 ARM Jumbo 2.750% 2.958% Source:www.wellsfargo.com,April 28,2020 Notes:APR=annual percentage rate;FHA=Federal Housing Administration;ARM=adjustable- rate mortgage Conforming loan is for no more than$510,400.A jumbo loan is greater than$510,400. B. Governmental Constraints Local policies and regulations impact the price and availability of housing and the provision of affordable housing. Land use controls, site improvement requirements, fees and exactions, permit processing procedures, and various other issues constrain the maintenance,development,and improvement of housing. Currently,the City does not have in place a standardized development concessions list established for affordable housing. Program HE-12 provides further detail. City of Pismo Beach 2020-2028 Housing Element Page 3-3 �Yoll� Constraints Analysis A�sMo B�PL� 1. Land Use Controls The Land Use Element of the Pismo Beach General Plan sets forth policies for residential development. These land use policies, coupled with zoning regulations, establish land allocation for different uses. Housing supply and costs are affected by the amount of land designated for residential use, the density at which residential development is permitted, and the standards governing the character of development. Development in Pismo Beach is governed by two zoning codes:the 1983 Zoning Code applies to areas in the Coastal Zone and the 1998 Zoning Code applies to property outside of the Coastal Zone. The 1983 Zoning Code covers approximately two-thirds of the community. The City is currently updating its Local Coastal Program which includes the General Plan and zoning. It is anticipated to be completed by the end of 2021. Chart 3-3 summarizes the General Plan land use designations and the zoning districts that either allow by right or conditionally permit residential development. Chart 3-3 Residential Land Use Controls in Pismo Beach General Plan Land Use Category Coastal or Non-Coastal Zoning District(s) Coastal R-1 Residential Low Density Non-Coastal RSL Coastal R-2 Residential Medium Density Non-Coastal RS-M,RR-L High Density Coastal R-3,R-4,R-R Non-Coastal RR-H Mixed Use Coastal C-1,C-2 Non-Coastal CD-M,CD-V,CD-C,CS,CRS,CG Planned Residential Coastal P-R Source: 1983 and 1998 Pismo Beach Zoning Codes;1992 General Plan Land Use Element Notes: RSL: Single-Family Low-Density Residential, RSM: Single-Family Medium-Density Residential, RR: Resort Residential, RR-L: Resort Residential—Low Density RR-H: Resort Residential—High Density, CRS: Resort Commercial, CD: Downtown Commercial, CD-M: Mixed- Use and Resident-Serving Commercial, CD-C: Central Core District, CD-V: Visitor Services, CG: General Commercial,CS:Service Commercial 2. Provisions for a Variety of Housing California housing element law specifies that jurisdictions must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of various types of housing for all economic segments of the population. This includes single-family housing, multifamily housing, manufactured housing, mobile homes, emergency shelters, and transitional housing, City of Pismo Beach Page 3-4 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMo among others. Pismo Beach has a wide range of housing types throughout the community. The following describes the major provisions in the Zoning Codes allowing residential uses. Conventional Housing Single-family homes are permitted by right in all residential zones, except for the R-4 and P-R zones, where such housing is permitted conditionally. Single-family homes are also permitted in some commercial zones, including by right in the CS zone and with a conditional use permit in the CD-M zone. In the Coastal Zone, multifamily housing of fewer than four units is permitted in the R-2, R-3, and R-R zones, but conditionally permitted in the P-R and R-4 zones. Multifamily housing of four or more units is permitted in the R-3 and R-R zones and is conditionally permitted in the P-R and R-4 zones. During the General Plan/Local Coastal Program (LCP) update,which is underway, the City will evaluate whether the discretionary review of multifamily projects of four or more units in the R-4 zone constrains development of multifamily housing in that zone and may consider revising how multifamily units are allowed in R-4. Outside the Coastal Zone,the Zoning Code permits multifamily developments in the RR-L and RR-H zones. Duplexes are permitted in the CS and CD-M zones and are conditionally permitted in the CD-V zone. Multifamily development is permitted in the CS zone and is conditionally permitted in the CD-M and CD-V zones. Pursuant to state law, manufactured housing placed on a permanent foundation is considered a single-family dwelling and is permitted in all zoning districts that allow single-family housing subject to architectural review. In the Coastal Zone, mobile home parks are permitted in the M-H zone.Outside of the Coastal Zone,mobile home parks are conditionally permitted in the RSL,RSM, and RR zones. Mixed-Use Development The City allows mixed-use development in several areas of Pismo Beach.As identified in the Pismo Beach Zoning Codes, the intent of mixed-use development is to provide a continuous frontage of retail shops and commercial business establishments at the street level, while providing opportunities for downtown living on the second floor and/or to the rear of the lot. The development of mixed use provides new employment and housing opportunities for residents. In the Coastal Zone, apartments are allowed on the second floor of a commercial building or on the rear of the lot. If the apartments are affordable housing, they are allowed by right. If the apartments are in conjunction with a permitted business, they are allowed with a conditional use permit. Outside the Coastal Zone, mixed-use residential developments are allowed by right in CS zones and with a conditional use permit in the CG, CD-C,CD-M, and CD-V zones.All mixed-use developments must use the entire ground-floor street frontage for retail and other commercial uses,rather City of Pismo Beach 2020-2028 Housing Element Page 3-5 �Yoll� Constraints Analysis A�SMo B�PL� than residential. However,in single-story structures, residential uses are permitted on the rear half of the lot, occupying less than 40 percent of the ground-floor area. Accessory Dwelling Units Accessory dwelling units (secondary units) are defined in the Pismo Beach Zoning Code as dwelling units that are attached or detached from a single-family dwelling unit on the same parcel. Accessory dwelling units provide quarters for independent living areas, sleeping, cooking, and sanitation facilities. Accessory dwelling units are permitted in R-1, R-2, R-3, R-4, R-R, and P-R in the Coastal Zone and in the RSL, RSM, and RR zones outside the Coastal Zone.The main exception is in R-1 in Pismo Heights above the intersection of Longview Avenue and Stratford Street, where the City Council adopted required findings. A coastal development permit is required in the Coastal Zone. In addition, due to inadequate emergency service access, accessory dwelling units cannot be established in any condominium or apartment project,unless specially addressed in the planned residential ordinance, or any mobile home subdivision or trailer park. Accessory dwelling units are permitted on lots/parcels where there is one existing or planned residence.. Accessory dwelling units require no discretionary approval, with the exception of hillside developments. Accessory dwelling units proposed on a slope of 20 percent or greater are prohibited. Parking requirements for accessory dwelling units within the Coastal Zone are shown in Chart 3-10 to comply with the public access requirements of California Coastal Act.The City will continue to update its regulations to comply with state legislation as needed as updates are made to state law. Housing for Farmworkers California law (Government Code Section 65583(c)(1)(C)) requires the adequate provision of sites to accommodate the housing needs of farmworkers. Housing elements should ensure that local zoning, development standards, and permitting processes comply with Health and Safety Code Sections 17021.5 and 17021.6. Section 17021.5 generally requires employee housing for six or fewer persons to be treated as a single-family structure and residential use. A jurisdiction cannot require any conditional use permit, zoning variance, or other zoning clearance for this type of employee housing that is not required of a family dwelling of the same type in the same zone. Section 17021.6 generally requires employee housing consisting of not more than 36 beds in group quarters or 12 units or less designed for use by a single family or household to be treated as an agricultural use. A jurisdiction cannot require a conditional use permit, zoning variance, or other zoning clearance for this type of employee housing that is not required of any other agricultural activity in the same zone. Program HE-25 addresses the requirements of the Employee Housing Act. City of Pismo Beach Page 3-6 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMO Housing for People with Disabilities The Lanterman Development Disabilities Services Act declares that mentally and physically disabled persons are entitled to live in normal residential surroundings. A state-authorized, certified, or licensed family care home, foster home, or group home serving six or fewer disabled persons or dependent and neglected children on a 24- hour-a-day basis is considered a residential use that is permitted in all residential zones. No local agency can impose stricter zoning or building and safety standards or require variances on these homes than those required for homes in the same district. The 1983 Zoning Code for the Coastal Zone conditionally permits family care facilities serving six or fewer residents in the R-1,R-2,and R-3 zones and conditionally permits larger facilities, called group care facilities, in the R-3 and R-R zones. Outside the Coastal Zone, the 1998 Zoning Code permits residential care facilities serving six or fewer persons by right in all residential zones and conditionally permits larger facilities in the same zones.Program HE-22 proposes amending the 1983 Zoning Code for the Coastal Zone to permit small residential care facilities in all residential zones. Emergency Shelters The California Health and Safety Code, Section 50801, defines an emergency shelter as "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 households may be denied emergency shelter because of an inability to pay." Legislation (Senate Bill [SB] 2 [Cedillo 2007])requires jurisdictions to allow emergency shelters without a conditional use permit in at least one zone or sufficiently sized site in the City to meet the City's homeless need. The City of Pismo Beach 1998 Zoning Code permits emergency shelters by right in the RSM, CRS, CG, CS, CD-C, CD-M, and CD-V zones. Pismo Beach currently has over 6 acres of vacant land on three parcels in these zones that can accommodate the development of an emergency shelter. Typical uses in these zones are a mix of commercial uses and medium-density residential housing. The vacant parcels range in size from 0.2 to 4.6 acres. These sites are in proximity to transit and services. Supportive and Transitional Housing Supportive housing is defined by Health and Safety Code Section 50675.14 as housing with linked on-site or off-site services with no limit on the length of stay and that is occupied by a target population as defined in Health and Safety Code Section 53260 (i.e., low-income person with mental disabilities, AIDS, substance abuse or chronic health conditions, or persons whose disabilities originated before the age of 18). Services linked to supportive housing usually focus on retaining housing, living and working in the community,and/or health improvement. In an effort to encourage the development of more supportive housing and address increasing levels of homelessness statewide,in 2018,the State Assembly passed Assembly Bill (AB) 2162, which limits the discretionary and review process for supportive housing projects.AB City of Pismo Beach 2020-2028 Housing Element Page 3-7 �Yoll� Constraints Analysis A�SMO B�PL� 2162 requires jurisdictions to permit the development of supportive housing by-right in areas zoned for either multifamily or mixed-use development. By requiring ministerial approval in these circumstances, the development of certain supportive housing would also fall under the California Environmental Quality Act (CEQA) exemption for ministerial approval. Transitional housing is defined in Health and Safety Code Section 50675.2 as rental housing for stays of at least six months but where the units are recirculated to another program recipient after a set period. It may be designated for a homeless individual or family transitioning to permanent housing. This housing can take many structural forms, such as group housing and multifamily units, and may include supportive services to allow individuals to gain necessary life skills in support of independent living. Pursuant to SB 2, transitional and supportive housing types are required to be treated as residential uses and subject only to those restrictions that apply to other residential uses of the same type in the same zone. The City's Zoning Codes are silent on the provision for transitional and supportive housing. To ensure consistency with state law,Program HE-22 proposes to make transitional and supportive housing subject to the same requirements as residential uses and to address AB 2162. Allowed Land Uses Chart 3-4 and Chart 3-5 summarize the housing types permitted in the community by zoning district. Each use is designated by a letter denoting whether the use is permitted by right (P) or conditionally permitted (CUP). Note that all residential uses in the Coastal Zone also require a Coastal Development Permit (CDP) for approval. City of Pismo Beach Page 3-8 2020-2028 Housing Element �YOIII Constraints Analysis A�sMo B�PL� Chart 3-4 Residential Uses Permitted in the Coastal Zone Zoning District Type of Housing C-1 C-2 R-1 R-2 R-3 R-4 R-R P-R M-H Single Family P P P CUP P CUP — — — Duplexes/Triplexes — P P CUP P CUP — — — Multiple Family Ct IP P CUP P CUP P** P** Condominiums — — CUP — CUP CUP — — — Mobile Home Parks — — — P — — Mobile Home P — — CUP P — P — — Emergency Shelters — — — — — — Accessory Dwelling Units P P P P P P — P/CUP* CUP (Secondary Units) Senior Housing — — — — — — Boarding Homes — — CUP — CUP — — — — Mixed Use — — — — — — — Adult Daycare Facilities — — — — — — — — — Family Care Facility CUP CUP CUP — CUP — — — (6 or fewer) Group Care Facility — CUP — CUP — — — — (7 or more) Source: 1983 Pismo Beach Zoning Code Notes:P =permitted use,CUP=conditionally permitted use,—=not permitted *Permitted by right if affordable **Affordable housing as a secondary use(i.e.,upper floors of buildings) City of Pismo Beach 2020-2028 Housing Element Page 3-9 �Yoll� Constraints Analysis A�SMO B�PL� Chart 3-5 Residential Uses Permitted Outside Coastal Zone Zoning District Type of Housing RR RSL RSM (L CRS CG CS CD-C CD-M CD-V Single Family P P P — — P — C L;P — Duplexes — — P — — P — P CUP Multiple Family — — P — — P — (:C 1' CUP Condominiums — P CUP — — — — — — Mobile Home Parks CUP CLIP CUP — — — — — Mobile Home P P P P — — — — — — Emergency Shelters — CL;P — P P P P P P Accessory Dwelling Units P P P — — — — — — (Secondary Units) Senior Housing — P P — — — — — — Boarding Homes — — CUP — — — — — — Mixed Use — — — CUP P CUP CUP CUP Adult Daycare Facilities CUP CUP CUP — — — — — — Residential Care Homes P P P — — P — P P (6 or fewer) Residential Care Homes CUP CUP CUP — P — P P (7 or more) Source: 1998 Pismo Beach Zoning Code Notes:P=permitted use,CUP=conditionally permitted use,—=not permitted What typically gets built is what the zone is intended for. For example, in the Pismo Heights Planning Area with a Single-Family land use designation, single-family homes have been built. However, there are exceptions. The PR land use designation has had both single family and duplexes built in the medium-density designation in the South Palisades and Freeway foothills planning areas. Typical built density for R-1 sites is one unit per buildable lot.The allowed density for the R-2 (Two and Three-Family Residential) Zone is 21.78 dwelling units per acre (du/ac.). The majority of lots with the R-2 designation are smaller in size (approximately 5,000 square feet [sq. ft.]) and are typically built to a density of approximately 15 du/ac. The allowed densities for the R-3 (Multifamily Residential), R-4 (Hotel-Motel and Visitor Serving) and R-R (Resort-Residential) zones are 30 du/ac. Recent projects within these zones have been built to a density of approximately 20 du/ac. In all cases, the major limiting factor in providing additional density were parking requirements. City of Pismo Beach Page 3-10 2020-2028 Housing Element �YOIII Constraints Analysis A�sMo B�PL� 3. Density Bonus To achieve density increases, the City implements the state's density bonus program (Government Code Section 65915) through Chapter 17.26 of the Pismo Beach 1998 Zoning Code,last updated in 2000.Under this law,the City offers developers a density bonus and at least one additional concession or incentive for proposed projects that will contain: (1) units affordable to very low-, low-, or moderate-income residents consistent with state law; (2) units restricted to qualified seniors; or (3) condominiums that meet certain state affordability thresholds. Conditions and affordability covenants required by state law will apply. Density bonus requirements were not codified in the 1983 Zoning Code; therefore, no specific standards exist for projects in the Coastal Zone. Numerous legislative actions have been passed since 2000 that amended the state density bonus program,including SB 1818,AB 2280,AB 2222,and AB 744.The City's zoning requirements in both the Coastal Zone and inland areas have not been updated to be consistent with these laws. Therefore, Program HE-1 proposes to bring Pismo Beach into compliance with current state density bonus law. 4. Residential Development Standards The City regulates the type, location, density, and scale of residential development primarily through the Zoning Codes. Zoning regulations are designed to promote the health, safety,and general welfare of residents as well as implement the policies of the General Plan. The Zoning Codes also serve to preserve the character and integrity of neighborhoods. Charts 3-6 through 3-9 summarize residential development standards in Pismo Beach. City of Pismo Beach 2020-2028 Housing Element Page 3-11 Get Y 0 Constraints Analysis �o s G TMO EP Chart 3-6 Residential Development Standards in the Coastal Zone Residential Zoning District Development Low Density Medium Density High Density Planned Residential Standard R-1 R-2 R-3 R-4 R-R P-R Maximum Density* One unit per parcel 21.78 units 30 units 30 units 30 units One unit per parcel,unless per acre per acre per acre per acre use permit specifies otherwise Minimum Lot Area 5,000 sq.ft. 5,000 sq.ft. 5,000 sq.ft. 20,000 sq.ft. 5,000 sq.ft. Determined by use permit** Minimum Lot Area 1 unit per buildable As established by use permit per Family Unit parcel,or combination 2,000 sq. ft. 1,450 sq. ft. 1,450 sq. ft. 1,450 sq. ft. or Coastal Land Use Plan of buildable lots i ■ Front Setback 20 ft. 20 ft. 15 ft. 15 ft. 15 ft. Determined use permit but not less than 15 ft. Front,bluff-top lot 15 ft. Sides Corner:20%of lot width,min 5 ft.and max 10 ft. As established by use permit Interior: 10%of lot width,min 7 ft.and max 10 ft. or Coastal Land Use Plan Rear Setback 10%of average lot depth,min 5 ft.and max 10 ft. Not As established by use permit specified or Coastal Land Use Plan Maximum allowable 86%of the first 2,700 For single-family, total building floor sq.ft.of lot area plus same as R-1;all For single-family,same as R-1;all other As established by use permit area for all structures 60%of any lot area other unit types unit types 125% or Coastal Land Use Plan as a percentage of lot >2,700 sq.ft. 80% area Site Coverage 55% Not to exceed 40%** As established by use permit Height*** 25 ft. 35 ft. or Coastal Land Use Plan, whichever requires greatest height restriction Source: 1983 Pismo Beach Zoning Code Notes:*Maximum number of dwelling units allowed per net buildable acre in a single-family subdivision or a multifamily project.The actual number of units allowed is determined through the subdivision or land use permit process,as applicable. **Single-family detached homes must comply with R-1 regulations. ***Exceptions and further restrictions subject to Height Overlay District. City of Pismo Beach Page 3-12 2020-2028 Housing Element �YOIII Constraints Analysis A�sMo B�PL� Chart 3-7 Residential Development Standards in Non-Coastal Zones Residential Zoning District Development Low Density Medium Density High Density Standard = RSL RSM RR-L RR-H Density 1 to 8 units per 9 to 15 units per 9 to 15 units 16 to 30 units acre acre per acre per acre 1 unit per 2,000 1 unit per 1,450 Maximum Units per Parcel 1 unit per parcel 1 unit per parcel sq. ft. sq.ft. Minimum Lot Area 5,000 sq.ft. Front Setback Parcels >4,000 sq. ft. 20 ft. Parcels <4,000 sq.ft. 20%of depth of 20%of depth of 15 ft. 15 ft. lot;min 10 ft. lot;min 10 ft. Front,bluff-top lot 15 ft. Side Setback 5 ft. - Street-side Setback 10 ft. Rear Setback ' - Parcel depth>70 ft. 10 ft. Parcel depth<70 ft. 5 ft. Blufftop 25 ft.from the top of the bluff for parcels subdivided before January 23, 1981;as determined by geologic study elsewhere Accessory structures must be M Distance Between separated from any other buildings Not specified Buildings by at least 6 ft. Floor Area Ratio(FAR) Parcels <2,700 sq. ft. 0.86 Parcels >2,700 sq. ft. 0.72 Site Coverage Mq 55% r 25 ft.in the Pismo Heights Height* 25 ft. and the Motel 35 ft. 35 ft. District planning areas;35 ft. elsewhere Source: 1998 Pismo Beach Zoning Code Notes: Maximum number of dwelling units allowed per net buildable acre in a single-family subdivision or a multifamily project.The actual number of units allowed is determined through the subdivision or land use permit process,as applicable. *Exceptions and further restrictions subject to Height Overlay District. City of Pismo Beach 2020-2028 Housing Element Page 3-13 �YOII� Constraints Analysis A�SMO B�PL� Chart 3-8 Residential Standards in Coastal Zone Commercial Zones Development Commercial Zoning District Standard C-1 C-2 Maximum Density By use permit Minimum Lot Area per Family Unit 2,000 sq.ft. Not specified Lot Area Determined by the use permit or development permit Front Setback Per development permit;none unless side is abutting a residential parcel,then no less than 10 ft. Side Setback None,unless required by other City regulations Rear Setback None,unless required by other City regulations Bluff-top Subject to the standards adopted in the Coastal Land Use Plan policies and programs 200 Site Coverage 80% Height = 42 ft.,unless oceanfront,then 25 ft. Source: 1983 Pismo Beach Zoning Code Chart 3-9 Residential Standards in Non-Coastal Commercial Zones Development Commercial Zoning District Feature CD-C CD-M CD-V CRS CG CS Maximum Not specified Not specified Not specified By use permit 30 units per acre in municipal in municipal in municipal Density code code code r� T Large enough 5,000 sq.ft.or as 2 acres for Determined to Lot area required by CUP 5,000 sq. ft. RV park by permit accommodate 20 units per acre 10 ft.where side Front Setback lot line abuts 15 ft. 15 ft. 10 ft. Determined residential;none by permit otherwise Sides None 5 ft. Determined Determined Determined by permit by permit by permit Rear None 10 ft. 5 ft. Determined Determined Determined minimum by permit by permit by permit Bluff-top 25 ft. from the top of the bluff for parcels subdivided before January 23,1981;as determined by geologic study elsewhere FAR 2.0 1.25 N/A 2 0.7 Site Coverage 80% 55% Not specified Not specified Not specified City of Pismo Beach Page 3-14 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMO B�PL� Development Commercial Zoning District Feature CD-C CD-M I CD-V CRS CG CS Per Planned 35 ft.;25 ft.for Development Height 35 ft. single-family 25 ft. 35 ft. Permit (Section 17.42.060) Source: 1998 Pismo Beach Zoning Code Notes:CUP=conditional use permit,N/A=not applicable,RV=recreational vehicle,FAR=floor area ratio Development standards in the City should not pose any constraints to the development of affordable housing.Minimum lot area required per unit decreases with the higher-density zoning districts and will provide opportunities for lower-income housing. The Zoning Codes pose no extraordinary constraints on any form of residential development. The greatest constraint to development in Pismo Beach is the cost of land, which is market driven. The City has attempted to adopt development standards that exert modest control over development as well as providing opportunities for projects to reduce standards via planned residential developments and other flexible options. By offering flexibility in the development standards, the City allows greater opportunities for projects to achieve maximum density, yet still provides for development projects to meet the City's overall adopted goals. The Planned Residential (P-R) zone allows for flexibility in design and structures best suited to the site and to accommodate environmental constraints.Single-and multiple- family housing is permitted subject to a conditional use permit. Densities in the P-R zone are often set by the General Plan, typically no more than eight units per acre. Any proposed development in the P-R zone must comply with the applicable specific plan. Finally,although the City's Zoning Codes permit a wide range of housing types,single- family homes are allowed in multiple-family zones. This provision could potentially constrain the City in encouraging the production of multiple-family housing in higher- density residential zones where necessary to meet City production goals. To address this potential constraint, Program HE-14 proposes to prohibit single-family housing from being built in the multiple-family residential zones, unless the lot cannot physically accommodate more than one unit. Additionally, Programs HE-5, HE-9, HE-10, HE-11, HE-12, and HE-24 call for providing incentives and flexibility in regulations to encourage development of a variety of housing options. Parking Standards The City's parking requirements are based on unit type and size. Shown in Chart 3-10, parking requirements are typically two spaces per single-family residential unit. Multifamily residential units have a reduced requirement based on the size of unit,but City of Pismo Beach 2020-2028 Housing Element Page 3-15 �Yoll� Constraints Analysis A�SMO B�PL� generally average two spaces per unit after accounting for guest parking. Reductions in the number of parking spaces are allowed for uses that serve tenants with low vehicle-ownership rates, such as senior housing, rooming/boarding homes, and convalescent homes. Program HE-1 proposes greater flexibility in the density bonus program to allow for these types of options. Chart 3-10 Parking Standards Residential Land Use Parking Required 2 garage spaces;both within a garage on parcels larger than 2,700 Single-family dwellings,duplexes sq. ft.;1 within a garage on parcels less than 2,700 sq.ft.Carports not allowed for single-family dwellings. Senior convalescent housing 1 space per 1.5 living units � ' Ir Studio and 1-bedroom units of less than 600 sq.ft.: 1 space/unit; Multifamily,condominiums, all other units require 2 spaces/unit.May be permitted in parking senior non-convalescent dwellings courts,carports,or garages. Guest parking: 1 space per 4 units for projects of 50 units or less; 1 space per 2 units for larger projects Mobile home parks 2 spaces per unit,1 covered;plus 1 space for each 4 units Mobile homes outside of parks 2 spaces per unit,1 covered Accessory dwelling units outside 1 additional off-street space per unit or per bedroom,whichever the Coastal Zone',2 is less Accessory dwelling units in the 1 space for studio and 1-bedroom units;2 spaces for 2-bedroom Coastal Zonez units Rooming and boarding homes 1 parking space per sleeping room,or 1 space per 100 sq.ft.of sleeping area Source: 1983 and 1998 Pismo Beach Zoning Codes Notes: 1. 1998 Zoning Code states no accessory parking is required for an accessory dwelling unit outside the Coastal Zone if the unit is within half a mile to a public transit stop or if the unit is part of the proposed or existing primary residence or an accessory structure. 2.All parking spaces for accessory dwelling units are required in addition to the parking spaces required for the primary residence. Open Space In highly dense residential environments, open space between housing units and buildings can provide a more pleasant setting and more livable environment. As a means to improve the quality of high-density residential complexes, multifamily projects must comply with open space requirements. In non-Coastal Zone areas,new residential projects are required to include common outdoor space (not including required front or street-side setbacks) of 400 square feet per unit. Private outdoor space in the form of patios, decks, fenced yards, and similar spaces is also required at 75 square feet per bedroom. Buildings must be oriented to create courtyards and common open space areas that are usable by residents and not relegated to leftover pieces of the site that are difficult to access. Requirements may be modified through either Site Plan and Architectural Review or the conditional use permit approval. City of Pismo Beach Page 3-16 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMo BBPL� During the General Plan/LCP update, which is underway, the City will revise open space requirements. Outside the coastal zone, there are no medium or high-density- zoned properties where the open space requirements would apply. No analogous provision applies for residential projects in the Coastal Zone, which is most of the City. Adequacy of Density and Development Standards Densities of 20 units per acre or more are preferable for affordable rental housing. Moreover, projects should also incorporate amenities such as open space, common areas, and community space that are vital to livability and appeal. A more critical factor than achievable densities in creating affordability is access to financing that can write down (reduce the book value of an asset) the cost of the land and, if possible, any required off-site improvements. Depending on the desired affordability,it may be necessary to write land costs down to zero. Of equal importance is ensuring that the parcel is large enough to achieve a certain construction and management "critical mass." Small infill-type development projects, while necessary and attractive, are difficult to develop, finance, and manage over the long term. Typically,projects should be at least 30 to 40 units. The Zoning Codes establish density and development standards to facilitate affordable housing.Multifamily projects can be built at 21.78 to 30 units per acre in medium-and high-density residential zones. A mixed-use project with condominiums, a hotel, and restaurant with the units built at 28.3 units per acre was built in 2015 and a second mixed-use project with attached and detached townhomes, commercial space, and vacation rentals with the units built at 20 units per acre was built in 2013.Both projects achieved higher densities while complying with current open space, height, and parking space requirements in the Zoning Codes. The Residential Very High Density (RVHD) Overlay District contains a list of provisions to enable well-designed, very high density, and 100 percent affordable residential developments that are consistent with the Housing Element. Development within the RVHD Overlay Zone requires a minimum density of twenty residential units per acre and allows up to fifty units per acre. In addition, density bonus may be awarded to achieve further density in the RVHD Zone. Program HE-17 proposes a housing incentive program to further encourage the development of affordable and higher-density market-rate housing. The program considers the following provisions: — Exceptions to regulations encouraging the use of current substandard lots; — Lot consolidation provisions to allow the assemblage of parcels into larger sites to accommodate affordable housing;and — Density bonus provisions and specification of modifications in development standards to facilitate maximum density. City of Pismo Beach 2020-2028 Housing Element Page 3-17 �Yoll� Constraints Analysis A�SMO B�PL� 5. Development Fees The City charges various fees and assessments to cover the costs of processing permits and providing services. Impact fees are also charged to cover the cost of providing municipal services or mitigating project impacts. These fees are summarized in Chart 3-11.The total amount of fees varies from project to project based on location (within or outside of the Coastal Zone) and the cost of mitigating environmental impacts.The school district charges impact fees to pay for school construction projects; however, these fees are controlled by the school district. Local developer records provided real project examples of fees charged on new housing projects. Two multifamily projects submitted since 2010 were reviewed—a 36-unit condominium project and a 32-unit townhouse project. Fees ranged from approximately $22,900 to $40,400 per unit. According to City staff, fees for recent single-family projects have ranged from approximately $26,833 to $50,333 per residence. Note: The fees shown in Charts 3-11, 3-12, and 3-13 are effective as of July 1, 2018. However, all fees are subject to change. Chart 3-11 Planning and Development Fees Fee Category Fee Amount Planning Commission and City Council Coastal Development Permit $3,261 Development Permit $3,149 Conditional Use Permit $4,088 Development Agreement $11,171 a Variance ' $2,138 Tentative Parcel Map $7,702 Tentative Tract Map ' $7,702+$445 per lot over 4 lots Planned Development Permit;Minor(SFRs and Parcel Maps) $4,506 Planned Development Permit;Major(Subdivisions) $7,652 Condominium Conversion $10,053 deposit a Environmental Review Environmental Initial Study—Minor $1,802 b Environmental Initial Study—Major Deposit determined by staff Administrative and Ministerial Actions Administrative Development Permit $250 Administrative Coastal Development Permit $250 Zoning Clearance $154 City of Pismo Beach Page 3-18 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMO B�PL� Fee Category Fee Amount Amendments Local Coastal Plan-Minor $8,378 Local Coastal Plan-Major $16,758 General Plan-Minor $3,390 General Plan-Major $11,171 Impact Fees Single-Family Multifamily Police $1,724 $1,212 Fire $2,617 $1,841 Traffic $5,364 $3,299 Park and Recreation Improvements $6,781 $4,771 Wastewater $3,266 $2,385 Water $9,869 $4,944 Recycled Water $9,637 $4,848 School $3.48/sq.ft. $3.48/sq.ft. Source:City of Pismo Beach 2019 Notes: All fees listed are effective as of July 1, 2018, except impact fees, which are effective as of January 1,2020. a. Deposit with charges at the fully allocated hourly rates for all personnel involved,plus any outside costs. b. Per study or$1,802 deposit if outside consultant is used. c. With charges at the fully allocated hourly rates for all personnel involved,plus any outside costs. Chart 3-12 Development Fees for New Housing Development Fees per Unit Development Fee Category Single-Family Attached/Multifamily, 2,000 Sq.Ft. 1,400 Sq.Ft. General,Admin.and Police Fees $1,724 $1,212 Fire Projection Fees � $2,617 $1,841 Traffic and Circulation Fees $5,364 $3,299 Parks and Recreation Fees $6,781 $4,771 Wastewater Fees $3,266 $2,385 Water Fees(Supply and Improvements) $9,869 $4,944 Recycled Water Development Fees $9,637 $4,848 School Fees $6,960 $4,872 Total $46,218 per unit $28,172 per unit Source:City of Pismo Beach 2019 City of Pismo Beach 2020-2028 Housing Element Page 3-19 �Yoll� Constraints Analysis A�SMo B�PL� Fees make up approximately 4 to 14 percent of a home purchase price (see Chart 3-13). Given the prices of housing in Pismo Beach and fees in other jurisdictions, fees for residential development are not a significant factor in housing costs in the City. Chart 3-13 Proportion of Fee in Overall Development Cost for a Typical Residential Development Development Cost for a Typical Unit Single-Family Multiple-Family Total estimated fees per unit $46,218 per unit $28,172 per unit Median sale price per unit $673,363 $474,673 Estimated proportion of fee cost to overall 7% 6% development cost per unit Sources:City of Pismo Beach 2019;City-Data 2019. Inclusionary Housing Requirements The City's inclusionary housing requirements are in Chapter 17.26 of the municipal code. Inclusionary requirements and fees also add to housing development costs. For residential projects of five or more units,the developer can either (1) pay an in-lieu fee equal to or greater than 5 percent of the building permit value; or (2) dedicate land or build affordable units of equal value to the fee.Commercial projects greater than 5,000 square feet must either(1)pay an in-lieu fee of at least 2 percent of the building permit value; or (2) build an affordable unit or dedicate land with value equivalent to the in- lieu fee. (Note: The projects in Chart 3-13 were less than five units and did not incur an inclusionary in-lieu fee.) The inclusionary fee has not been a constraint to development. Short-Term Rental Regulations The City updated their short-term rental (STR) regulations in 2018. These regulations can be found in Chapter 17.09 of the non-coastal zone zoning ordinance and Chapter 17.113 of the coastal zoning ordinance. Outside the coastal zone, STRs are permitted in the Single-Family Low-Density Residential (RSL), Single-Family Medium-Density Residential (RSM), and Open Space (OS) zones and are prohibited in all other residential zones. Homestays are regulated in the same manner as STRs, except there is no limit to the number of rental days allowed per year. These STRs or homestays are permitted only at single-family homes where the property owner retains the property as their primary residence. The property owner is required to obtain a STR license from the City. For tax purposes,properties identified as STRs must be licensed and the property owner must apply for a transient occupancy tax/lodging business improvement district/tourism marketing district (TOT/LBID/TMD) certification. This certificate requires that the property owner collect and remit TOT/LBID/TMD payments to the City on a monthly basis in compliance with the City's TOT and LBID ordinances and tourism marketing district assessment. STRs in the Coastal Zone are permitted in Planning Area K of the General Plan,or other non-residential zones.This definition is consistent with Coastal Commission guidance that recommends defining City of Pismo Beach Page 3-20 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMo and regulating STRs in the LCP. STRs in the coastal zone are taxed under the same procedures as STRs and homestays in the non-coastal zone described previously. The updates to the STR regulations are recent and balance housing needs of long-term residents with the mission of providing accommodations to visitors to the coast. As of June 30,2020,the City has permitted approximately 25 STRs.The City will continue to monitor the impacts of STRs on long-term housing options. 6. Building Codes and Site Improvements Building codes and site improvements can also increase the cost of developing housing, particularly affordable rental housing. The following examines the City's building codes and site improvement standards. Building Codes and Enforcement Pismo Beach implements the 2019 edition of the California Building Code and other model construction codes, with amendments adopted by the California Building Standards Commission. These model codes establish standards and require inspections at various stages of construction to ensure code compliance and minimum health and safety standards. Although these standards and the time required for inspections increase housing production costs and may impact the viability of rehabilitation of older properties, the codes are mandated for all jurisdictions in California. The City has not adopted local amendments to the model codes that increase housing costs. Building inspectors are responsible for ensuring that proposed projects meet state and local codes. Site Improvements The City requires on-site and off-site improvements for new housing projects. Many areas of Pismo Beach are highly developed and already have infrastructure in place to serve smaller infill residential projects. Thus, the on- and off-site improvements are minimal. Larger developments, like the Los Robles annexation area, are governed by specific plans. Fees also pay for many types of improvements to serve residential properties. For unimproved areas not governed by a specific plan, the General Plan and City standards direct on- and off-site improvements. For instance, local streets typically have a 56-foot right-of-way and a 36-foot curb-to-curb width, but exceptions allow for smaller roadway widths as appropriate. Collectors have a 60-foot right-of-way with a curb-to-curb width of 40 feet. Sidewalks 5 feet in width are generally required on both sides of the street,as well as an additional 5-foot-wide easement for future street widening. City of Pismo Beach 2020-2028 Housing Element Page 3-21 �Yoll� Constraints Analysis A�SMO B�PL� For small infill developments, the City does not usually require fire hydrants, streetlights,and signals,but would require these amenities for larger specific plan areas. In subdivisions, street trees are required every 30 feet. Developers are also required to install water and sewer lines. For small infill projects, developers simply install the laterals from the in-street main to the actual home. These on- and off-site improvement standards are typical for most communities and do not pose unusual constraints for housing development. 7. Local Processing and Permit Procedures As a coastal community with unique environmental and topographical constraints,the City requires different levels of review for housing projects depending on the type, size, and location. Project reviews ensure that the proposed project meets applicable City regulations, state environmental laws, and applicable building standards. The City's development review and permitting processes for residential developments are described herein and summarized in Charts 3-14 and 3-15. Chart 3-14 displays the review authority required for various planning decisions and permits. Chart 3-15 displays the typical timelines for approvals and permits for the City.Residential projects of less than four units typically take two to four months from submittal of the application through completion of public hearings. Processing for larger residential projects can take three to six months to complete. Applications for building permits are usually submitted within one year once a project is fully entitled. Chart 3-14 Permit Processing Procedures Role of Review Authority Type of Decision Director or Planning City City Staff Commission Council Zoning Clearance Decision Appeal Appeal Site Plan and Architectural Review Decision Appeal Appeal -Projects in RSL,RSM,and RR districts Decision Appeal Appeal -Development in other zoning districts Recommend Decision Appeal Conditional Use Permit Recommend Decision Appeal Source: 1998 Pismo Beach Zoning Code Notes:In the Coastal Zone,the Site Plan Review is called a Review of Coastal Development Permit and applies in the same manner as the Site Plan and Architectural Review. City of Pismo Beach Page 3-22 2020-2028 Housing Element �YOIII Constraints Analysis A�sMo B�PL� Chart 3-15 Timelines for Permit Procedures Type of Approval,Permit,or Review Typical Processing Time Zoning Clearance 10 days Site Plan and Architectural Review 30 days Site Plan and Architectural Review, 30 days after staff approval Planning Commission Approval Conditional Use Permit Mplp� 4-6 months Coastal Zone Development Permit 3-4 months Environmental Review Process 6-12 months,dependent on the project type and type of review required Zoning Clearance The 1998 Zoning Code requires zoning clearance for all developments. For conventional single-family homes on existing lots of record and multifamily projects, City staff will approve the project over the counter unless the development requires an exception or modification. The zoning clearance process is intended to verify that the proposed structures or land use complies with the permitted list of activities allowed in the zoning district and the development standards applicable to the type of use.This process is completed within 10 working days. Site Plan and Architectural Review Site Plan and Architectural Review is required for proposed new housing for site design, including location of structures, landscaping, ingress/egress, parking and loading, grading, and architectural design. Planning staff determines whether the application complies with site planning standards. The standards are objective in nature with graphic illustrations and descriptions. Projects on slopes exceeding 15 percent, mixed-use projects, or projects seeking discretionary land use decisions require Planning Commission approval.The Planning Commission can approve the application, with or without conditions, when the proposed project meets four criteria: (1) consistency with allowable uses in the zoning district; (2) consistency with the General Plan or applicable specific plan; (3) compliance with CEQA requirements; and (4) compatibility with existing and anticipated land uses in the vicinity. This process is typically completed within 30-60 days after staff approval.The City will evaluate criterion four for objectivity during the LCP update and make changes if needed to provide objective standards. Conditional Use As indicated earlier, certain residential uses require a conditional use permit. The Planning Commission is responsible for reviewing and approving the permit after a recommendation by City staff. The commission may grant the permit when the proposed use is in accordance with the provisions of the General Plan and the Zoning City of Pismo Beach 2020-2028 Housing Element Page 3-23 �Yoll� Constraints Analysis A�SMo B�PL� Codes and appropriate conditions are met. Conditional use permits are required for certain special needs housing (e.g., residential care facilities, condominiums, and mixed-use projects), as well as multifamily units in certain zones. The conditional use permit process typically takes three to five months. Coastal Development Permit Properties in the Coastal Zone encompass most of the City.The City has an LCP that was approved by the Coastal Commission in 1993, which is currently undergoing a comprehensive update. Therefore, approval of development projects in the Coastal Zone can be performed locally. Proposals for residential development in the Coastal Zone are subject to the Coastal Development Permit noticing requirements. Applications for development within 300 feet of the ocean or the first through road require Planning Commission review.Development in the balance of the Coastal Zone area may be approved by City staff. In each case, there is a 30-day review period for application completeness, with action on the application to occur within 60 days for single-family homes. Environmental Review Process State regulations require environmental review of discretionary project proposals (e.g., subdivision maps, specific plans, use permits). The time frames associated with environmental review are regulated by CEQA. In compliance with the Permit Streamlining Act, City staff ensures that proposals are reviewed within the timeframes established in the CEQA Guidelines. 8. Housing for People with Disabilities California law requires jurisdictions to analyze potential and actual constraints on housing for persons with disabilities,demonstrate efforts to remove impediments,and include programs to accommodate housing designed for disabled persons. Review of the Municipal Code, permitting procedures, development standards, and building codes revealed the following findings. Land Uses and Housing The City permits a wide variety of housing types in the community, including conventional single- and multifamily housing, mobile homes, emergency shelters, residential care facilities, and other types of housing. To comply with state law, this Housing Element proposes to amend the Zoning Codes to permit residential care facilities serving six or fewer persons and transitional housing in residential zones the same as any other permitted residential use in the same zone in a manner consistent with state law (Programs HE-20 and HE-22). City of Pismo Beach Page 3-24 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMO Development Regulations The City enforces Title 24 of the California Code of Regulations, which addresses access and adaptability of buildings to accommodate persons with disabilities.The City also requires compliance with the 1988 amendments to the Fair Housing Act, which requires a minimum percentage of dwelling units in new housing projects to be fully accessible to the physically disabled. No additional accessibility or visit-ability standards above state and federal law are required. Housing occupied by people with disabilities is treated like any other residential use. No unique restrictions are in place, such as minimum distances, special conditions for disabled housing, noticing procedures, special use permits, or other regulations that could constrain the development, maintenance, or alteration of housing for disabled persons. Process for Reasonable Accommodation Accessibility improvements to existing structures, such as a ramp, are usually handled ministerially by City staff. Attached features, such as a ramp, may project 20 percent into the setback and 40 percent into the interior street-side setback. The fee for this process averages less than$100. Chart 3-16 reviews not only the 1983 and 1998 Zoning Codes but also land use policies,permitting practices, and building codes to ensure compliance with state and federal fair housing laws for persons with disabilities. To further fair housing opportunity compliance, Program HE-24 commits the City to publicizing its reasonable accommodation procedure to those who may need it in their housing. Chart 3-16 Constraints on Housing for Persons with Disabilities Overarching and General Does the City have a process for persons with disabilities to make requests for reasonable accommodation? Yes.The City's reasonable accommodation procedure is codified in Chapter 17.04 of the 1998 Has the City made efforts to remove Zoning Code. constraints on housing for persons with disabilities? Does the City assist in meeting identified Yes.The City requires a minimum percentage of needs? dwelling units in new housing projects to be fully accessible to the physically disabled. Zoning and Land Use Has the City reviewed all its zoning laws, Yes.The City has reviewed the land use regulations policies,and practices for compliance with and practices to ensure compliance with fair fair housing law? housing laws. Are residential parking standards for persons Section 17.108.070 of the 1983 Zoning Code with disabilities different from other parking (Coastal)mandates specific requirements (number, standards?Does the City have a policy or size,performance standards) for disabled parking program for the reduction of parking and reduced parking for new housing for the requirements for special needs housing if a elderly. City of Pismo Beach 2020-2028 Housing Element Page 3-25 �Yoll� Constraints Analysis �051r_ proponent can demonstrate a reduced Section 17.34.060 of the 1998 Zoning Code parking need? (Inland)mandates the provisions of disabled parking spaces in accordance with Uniform Building Code Section 1129B. Does the locality restrict the siting of group Family care facilities (group homes with six or homes? fewer residents) are restricted with CUP requirements. Only outside the Coastal Zone are family care facilities permitted by right in all residential zones. Program HE-22 is proposed to bring the City into compliance with state law in the Coastal Zone. What zones allow group homes other than In the Coastal Zone(1983 Zoning Code),family those allowed by state law?Are group homes care facilities require a conditional use permit in the over six persons allowed? R-3 and R-R zones (they are not permitted in other residential zones).Program HE-22 is proposed to bring the City into compliance with state law in the Coastal Zone. Outside the Coastal Zone(1998 Zoning Code), residential care facilities are permitted by right in all residential zones and a conditional use permit is required for larger facilities in the same zones. Does the City have occupancy standards in No the zoning code that apply specifically to unrelated adults and not to families? Does the land use element regulate the siting No.There is no minimum distance required of special-needs housing in relationship to between two or more special-needs housing. one another? Permits and Processing How does the City process a request to Ministerially by City staff. retrofit homes for accessibility? Does the City allow group homes with six or Yes,outside of the Coastal Zone(1998 Zoning fewer persons by right in single-family zones? Code).However,a conditional use permit is required within the Coastal Zone(1983 Zoning Code).Program HE-22 is proposed to bring the City into compliance with state law in the Coastal Zone. Does the City have a set of particular Yes.Group homes with greater than six persons conditions or use restrictions for group (referred to as group care facilities in the Municipal homes with greater than six persons? Code) are only permitted in the R-3 and R-R zones and require a CUP in the Coastal Zone. Outside of the Coastal Zone,a CUP is required in all residential zones. What kind of community input does the City When a residential care facility is proposed in allow for the approval of group homes? permitted zones,no other planning approval is required other than to ensure that the development conforms to the standards of the applicable Zoning Code.However,the CUP process provides the public with an opportunity to review the project and express their concerns in a public hearing. City of Pismo Beach Page 3-26 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMO BBPL� Does the City have particular conditions for No.The City does not have special standards for group homes that will be providing services group homes regarding location,design,or on site? operation. MMMMMMF Building Codes Has the locality adopted the Uniform Pismo Beach has adopted the 2016 California Building Code? Building Code. Has the City adopted any universal design' The City's Building Code does not include specific element into the code? regulations that require incorporation of universal design. Does the City provide reasonable The City enforces what is required by the 2016 accommodation for persons with disabilities California Building Code.The City has a process to in the enforcement of building codes and the ensure reasonable accommodation for those with issuance of building permits? disabilities.It is codified in Chapter 17.04 of the 1998 Zoning Code. Source:City of Pismo Beach 2018 Note: 1.Universal design can address limited lifting or flexibility(with roll-in showers and grab bars), limited mobility (with push/pull lever faucets, wide wing hinges), and limited vision (by additional stairwell and task lighting). 9. Energy Conservation Opportunities Introduction Greenhouse gas emissions from human activities, such as electricity production, motorized transportation,and livestock production,are contributing to global climate change. The effects of global climate change are potentially drastic and may result in severe flooding, droughts, heat waves, and other weather-related effects that may in turn cause property damage, negatively impact agriculture, and cause a loss of biodiversity. New housing development contributes to greenhouse gas emissions,but wise choices related to site design, building architecture, and materials specification can significantly reduce these emissions. In addition, these increases in efficiency can contribute to reduced housing costs and reduce automobile dependence. Energy efficiency has direct application to affordable housing because if more money is spent on energy, less money is available for rent or mortgage payments. High energy costs have particularly detrimental effects on low-income households that do not have enough income or cash reserves to absorb cost increases and must choose between basic needs such as shelter, food, and energy. State housing element law requires an analysis of the opportunities for energy conservation in residential development. This section describes opportunities for conserving energy in existing homes as well as in new residential construction. The factors affecting energy use, conservation programs currently available in Pismo Beach,and examples of effective programs used by other jurisdictions are discussed. City of Pismo Beach 2020-2028 Housing Element Page 3-27 �Yoll� Constraints Analysis �061r_ Factors Affecting Energy Use The factors that affect residential energy use must be understood in order to identify opportunities for conservation. One such factor is the size of the population. At any given time, the larger the population, the more electricity is consumed. But over time, new conservation mandates and technological advances decrease the per capita consumption of energy.This means that the total energy use increases at a slower rate than population. A greater density of development can offer the economies of scale, which increase efficiencies in energy systems, as well as the need for water and sewer infrastructure. Land use planning and zoning practices can help to conserve energy. For example, if the General Plan and zoning ordinance encourage residential subdivision in a relatively isolated area, far from commercial facilities such as grocery stores, residents must travel longer distances to take care of their daily shopping and service needs.Keeping housing and jobs in balance and near each other helps to reduce energy use for commuting. Longer trips usually necessitate using an automobile rather than walking or cycling. Changing the land use pattern can also change energy use Patterns. In addition to the effects of land use patterns on energy use patterns, the price of energy itself often plays a role in its consumption.The price of energy has a significant effect; the more expensive it becomes; the more incentive people have to conserve. Pricing energy at higher levels encourages alternative consumption patterns in the community. Residential water heating and heating/cooling are major sources of energy consumption. With the application of energy-efficient design and the use of solar power systems, home heating and cooling can be operated on a more efficient and sustainable level. Encouraging energy-efficient building design and green energy systems through incentives and other measures contributes to reduced energy consumption across the community at large. The local climate has a large effect on residential energy use. In general, Pismo Beach has a mild climate typical of many coastal communities. Summers are warm with early morning fog,and winters are only moderately cold.Prolonged periods of cold weather cause increased energy use for space and water heating. Conversely,prolonged periods of hot weather cause increased energy use for space cooling. This situation is particularly true if homes are not well insulated. Landscaping can mitigate this effect. For example, deciduous trees near a home can shade it from sun in the summer and allow the sun's rays to reach it in the winter. The efficiency of household appliances also affects energy use. Older appliances may not operate as efficiently as when they were new,and many older appliances were built when energy conservation was not considered important. Significant energy-efficient design advances have been made in refrigerators, stoves, and furnaces. City of Pismo Beach Page 3-28 2020-2028 Housing Element (�(Y OF Constraints Analysis A�SMO Existing Conservation Programs Pismo Beach will join Monterey Bay Community Power to implement community choice electricity sourcing beginning January 1, 2021. Pismo Beach will join most of the other cities in the county and much of the rest of the central coast of California to get their electricity from this company rather than Pacific Gas and Electric Company (PG&E) in order to receive electricity from more renewable sources. Transmission of electricity will still be via PG&E transmission lines. The following energy conservation programs are implemented in Pismo Beach: — The California Building Standards Code (specifically Title 24) requires that all new residential development comply with several energy conservation standards. The standards require ceiling,wall, and concrete slab insulation, vapor barriers, weather-stripping on doors and windows, closeable doors on fireplaces, no continuous burning gas pilot lights, insulated heating and cooling ducts, water heater insulation blankets, swimming pool covers and timers, certified energy- efficient appliances,etc.All new construction in Pismo Beach must comply with Title 24. Updates to the standards are issued every three years. The next update will take effect January 1,2020. — Pismo Beach Climate Action Plan. The most updated version of this document, released in May 2014, recommends measures that can be implemented to help reduce greenhouse gas emissions from City government operations and activities within the community. This policy document recommends implementation measures that help lower energy costs, reduce air pollution, support local economic development, and improve public health. Climate action measures suggested in the plan include government energy efficiency retrofits, a community-wide energy audit and retrofit program, and an income-qualified solar photovoltaic program. — The San Luis Obispo Regional Energy Alliance offers two programs to reduce energy use, demand, and cost, and lower greenhouse gas emissions in San Luis Obispo County,which includes Pismo Beach: • The empower program offers incentives, financing, and qualified contractors to homeowners throughout the county, to help overcome barriers to energy-saving upgrades and to decrease monthly utility bills. • Energy Watch is a comprehensive program that provides information to targeted customers regarding energy use and cost associated with facilities and infrastructure. This information is used to identify, finance, and implement energy and cost savings measures, as well as track building performance. — Income-qualified Pismo Beach homeowners are also eligible for no-cost solar installations through the nonprofit group Grid Alternatives. City of Pismo Beach 2020-2028 Housing Element Page 3-29 �Yoll� Constraints Analysis A�SMo B�PL� — PG&E offers a variety of energy conservation services for residents and provides several other energy assistance programs for lower-income households. These programs include the Low Income Home Energy Assistance Program (LIHEAP) and the Energy Savings Assistance Program. LIHEAP is a federally subisdized program that helps provides one-time financial assistance to low- income residents struggling to pay their energy bills and provides home weatherization services that helps residents to lower their energy costs The Energy Savings Assistance Program provides home energy assessments for low- income Californians and provides energy updates,such as refrigerator or furnace repaclacements, energy-efficient lightbulbs, caulking, or low-flow showerheads. PG&E also offers rebates for energy-efficient home appliances (such as heating and cooling equipment or appliances) and remodeling for customers at all income levels and housing types. Program HE-25 is proposed to address energy conservation and efficiency in Pismo Beach. City of Pismo Beach Page 3-30 2020-2028 Housing Element Chap tee- 4 Housing Resources This chapter addresses the resources available for the development,improvement,and preservation of housing in Pismo Beach. This includes: — An evaluation of Pismo Beach's Regional Housing Needs Allocation. — A sites inventory and analysis, which is an inventory of land suitable for residential development. — A summary of potential infrastructure and environmental constraints to residential development. — An overview of financial and administrative means for developing and implementing City housing programs. A. Regional Housing Needs Allocation California law requires the California Department of Housing and Community Development (HCD) to project statewide housing needs and allocate the need to each region in the state.After consulting with the San Luis Obispo Council of Governments (SLOCOG), HCD provides the regional need to SLOCOG, which then distributes the Regional Housing Needs Allocation (RHNA) to San Luis Obispo County (County) and the cities in the SLOCOG region. SLOCOG allocates housing production goals for the County and member cities based on their share of the region's population and employment growth. The projected housing needs in the RHNA are categorized by income based on the standards of very low-, low-, moderate-, and above moderate-income households established by the US Department of Housing and Urban Development (HUD) (California Health and Safety Code Section 50079.5). The following sections describe the RHNA for the current 2019-2028 (sixth) RHNA cycle. 1. 2019-2028 Regional Housing Needs Allocation The time frame that units can be counted towards the RHNA is December 31,2018— December 31, 2028. The RHNA projection period effectively started January 1,2019, so that year is used in this housing element. The City's RHNA for the 2019-2028 City of Pismo Beach 2020-2028 Housing Element Page 4-1 �Yoll� Housing Resources A�SMo B�PL� projection period (459 units) is shown in Chart 4-1.As shown in the chart,units were constructed or building permits were issued for 36 above moderate-income units so far during the RHNA cycle. In addition, two accessory dwelling units (ADUs) were permitted (considered to be affordable to low- and moderate-income households, according to a county-wide ADU market study). See Section B.2 for an analysis of ADU potential and affordability. Chart 4-1 Regional Housing Needs Allocation Progress 2019-2028 Income Category Total Extremely Very Low Moderate Above Low* Low Moderate 2019-2028 RHNA 56 57 71 82 193 459 Building Permits/Units 0 0 0 0 36 36 Constructed ADUs Permitted 0 0 1 1 0 2 Vacant Land Inventory 161 46 242 449 ADU Potential** 0 0 56 56 0 112 2014-2019 RHNA 34 21 85 1 Surplus Source: SLOCOG 2019; San Luis Obispo County Accessory Dwelling Unit and Mobile/Manufactured Home Market Study Report 2020;City of Pismo Beach 2020 Notes: * The extremely low-income allocation is assumed to be 19 based on the HCD-accepted methodology of assuming 50 percent of the very low-income allocation for households of extremely low income. **According to HCD guidance,the nine remaining years of the projection period/RHNA cycle can be projected at five times the average past ADU approval performance.Past performance for 2018 and 2019 was an average of 2.5 ADUs approved per year. B. Sites Inventory and Analysis Local governments can employ a variety of development strategies to meet their RHNA housing production goals, as established in California Government Code Section 65583(c)(1)). In addition to identifying vacant or underutilized land resources, local governments can address a portion of their adequate sites requirement through the provision of ADUs. This section summarizes units permitted, the vacant land inventory, and ADU potential. 1. Vacant Land Inventory State law governing the preparation of housing elements emphasizes the importance of an adequate land supply by requiring that each housing element"identify adequate sites... to facilitate and encourage the development of a variety of types of housing for all income levels" (Government Code Section 65583(c)(1)). If an adequate supply City of Pismo Beach Page 4-2 2020-2028 Housing Element (�(Y OF Housing Resources A�SMo BBPL� of new housing is to be provided, enough land must be zoned to allow for the construction of a variety of housing at densities that will satisfy the objectives of the housing element. The land must also have access to appropriate public services, such as water, sewer, storm drainage, and roads. The current vacant land inventory (Chart 4-2) identifies the potential for 449 units. Pismo Beach has over 43 acres of vacant land in the CG, P-R, R-1, and RSL zones that can accommodate 242 residential units. Most of these sites are expected to accommodate above moderate-income households. In addition, sites identified in the C-1 district and smaller sites identified in the R-3, R-4, and R-R districts have been identified as appropriate sites for 46 potential moderate-income units. Specific sites of sufficient size and certain characteristics in the R-R, R-3 (with RVHD Overlay), C-1, and C-2 districts have been identified as suitable for higher-density housing and can potentially accommodate 161 units (see also Appendix C and Chart 4-1). A map showing the locations of vacant sites can be found in Appendix B, and a detailed land inventory table can be found in Appendix C. Chart 4-2 Pismo Beach: Vacant Land Sites Summary Zone Number of Acres Realistic Unit Parcels Capacity Low-or Medium-Density Vacant Parcels CG 2 3.53 3 P-R 50 29.60 187 R-1 32 5.41 32 RSL 20 4.81 20 Low-or Medium-Density Subtotal 104 43.35 242 Vacant Parcels Suitable for Moderate-Income Units C-1 4 0.61 4 R-3 2 0.42 11 R-4 6 1.14 27 R-R 1 0.23 4 Moderate-Income Subtotal 13 2.40 46 High-Density Vacant Parcels R-R 3 0.89 15 C-2 2 2.78 61 R-3 with RVHD Overlay 1 1.20 60 C-1 1 0.57 25 High-Density Subtotal 7 5.44 161 Totals 124 51.19 449 City of Pismo Beach 2020-2028 Housing Element Page 4-3 �Yoll� Housing Resources A�SMO B�PL� Source:City of Pismo Beach 2020 Vacant parcels listed in Chart 4-2 are in zones allowing residential uses and are clear of environmental constraints that preclude development. Development potential was determined in concert with the City's knowledge of the sites. It was assumed that vacant single-family parcels could support one unit per parcel. 2. Accessory Dwelling Unit Potential Since 2018, the City has permitted an average of 2.5 accessory units annually. Using this historical average and guidance provided by HCD, it is assumed that 112 ADUs will be permitted before December 31,2028.This assumption takes into consideration the historical trend since the beginning of the RHNA cycle as well as the increased permissiveness of state law regarding ADUs, balanced with requirements of the Coastal Act. Based on the size of ADUs and rents in Pismo Beach, the City estimates that this type of unit is most likely to be affordable to moderate- and low-income households. See affordability limits in Chart 2-19 and current market rental rates in Chart 2-18 (both in Chapter 2).According to the research,market rent averages range from about $1,800 to $2,500 for studio and one-bedroom units. It is assumed most ADUs will be one of these two unit sizes.This range is mainly affordable to moderate- income households. In the fall of 2019, the County conducted a countywide market study of ADUs that included all the cities, unincorporated communities, and remote residential development within the county. The market study found that ADUs currently available for rent in San Luis Obispo County are affordable to a variety of income groups and household sizes. In addition, based on an ADU study conducted by the University of California (UC) Berkeley's Center for Community Innovation (Chapple et al. 2017), 40 percent of ADUs are typically rented to family members or friends at either no cost or below market rate rental rates. Based on the combination of the market study and the Chapple industry research, of the 112 ADUs projected to be built in Pismo Beach between 2020 and 2028, 56 (50 percent) are anticipated to be affordable to low-income households, and 56 (50 percent) will be affordable to moderate-income households. The Pismo Beach ADU regulations encourage ADUs and allow flexibility in their development. The regulations may assist homeowners in purchasing a home,provide security for people living alone,provide quarters for relatives,make more efficient use of infrastructure, increase the diversity of people living in neighborhoods, and offer an opportunity for low-and moderate-income renters. Pismo Beach last updated their regulations for ADUs in 2018. Program HE-18 calls for updates to the ADU regulations to comply with changes to state law since 2018. Demolitions Higher-density housing construction has occurred on underutilized sites. A review of building permits issued from 2001 through 2018 indicates that 6 older single-family dwellings were replaced with higher-density units, including 15 multifamily units and 18 condominiums, totaling 33 units (see Chart 4-3). A significant number of older City of Pismo Beach Page 4-4 2020-2028 Housing Element (�(Y OF Housing Resources A�SMo single-family homes were also demolished and replaced by newer and typically larger single-family residences. Since 1982, it is estimated that 135 units have been demolished and 90 replacement units have been constructed in the Coastal Zone. Approximately one-third of the demolished units, or 45 units, were low- and moderate-income units. No demolition of affordable units has occurred since 2010. Chart 4-3 Residential Units Built After Demolition, 2001-2018 Project Address Zoning Existing Use Replacement Housing District Demolished 2057 Shell Beach R-3 1 SFR Apartments (6 units) 140 Park R-4 1 SFR Condos (12 units) 251 Park RR 1 SFR Duplex(2 units) 436 Stimson R-3 1 SFR Condos(6 units) 361 Hinds RR 1 SFR Quadplex(4 units) 271 Wadsworth R-3 1 SFR Triplex(3 units) Total 6 33 units (18 condos and 15 multifamily) Source:City of Pismo Beach Building and Planning records 2018 Note:SFR= single-family residence C. Infrastructure and Environmental Constraints Pismo Beach has a variety of infrastructure and environmental constraints that need to be addressed to accommodate new residential development, such as environmental issues associated with hillsides, flooding,water supply, sewer system,roads, and other infrastructure. This section discusses these potential constraints to future residential development in the City. 1. Infrastructure Analysis Infrastructure adds to the cost of new construction (e.g.,major and local streets,water and sewer lines, and street lighting). In most cases, these improvements are dedicated to the City,which is then responsible for their maintenance. Water and sewer service capacity is discussed herein. An analysis of other site improvements is conducted in Chapter 3, Section B.6. Water Service The City receives 2,832 acre-feet of water per year (AFA),which includes 1,240 AFA from the State Water Project, 892 AFA from Lopez Reservoir, and 700 AFA from City Wells 5 and 23.The City also has 10 reservoirs that can store 5.33 million gallons of water and is pursuing the Central Coast Blue Project,which is a regional advanced purified water project that would involve injection of advanced purified water into the City of Pismo Beach 2020-2028 Housing Element Page 4-5 �Yoll� Housing Resources A�SMo BBPL� Satna Maria Groundwater Basin. In 2015,the City's surface and well water production was 2,319 acre-feet, which is approximately 82 percent of capacity. The City's 2015 Urban VaterManagement Plan includes water supply projections until 2035 and forecasts that demand can be met, assuming contracts for water remain stable. Should a water shortage become imminent,the City will comply with state law (Senate Bill [SB] 1087) requiring a priority permit allocation system for lower-income housing. Wastewater The City's wastewater disposal system comprises the treatment plant adjacent to Pismo Creek and the ocean outfall near Oceano,which is operated jointly with the South San Luis Obispo County Sanitation District. In July 2006, a $12 million upgrade and expansion project was completed at the Pismo Beach Wastewater Treatment Plant. The upgraded plant is now equipped with an advanced secondary treatment designed to accommodate and treat flows expected at full buildout of the City. The facility has a design capacity of 1.9 million gallons per day (mgd),with a peak flow up to 6 mgd. The 2011 Local Agency Formation Commission Municipal Services Review indicates the plant operates at 53 percent capacity. According to the General Plan Environmental Impact Report(EIR),average daily flow for residential use is 98 gallons per capita per day. Based on a projected population of 11,122 in 2027 in the City's Urban Wlater Management Plan, the wastewater flow is estimated to be 1.6 mgd or 84 percent of capacity, and 93 percent of capacity including areas in the Sphere of Influence. Dry Utilities Dry utility service, including electrical service and internet, are available on all of the parcels in the City's land inventory. 2. Environmental Issues Environmental constraints to residential development typically relate to unsuitable soils, sensitive biological resources and coastal wildlife, topographic constraints, the potential for natural hazards, and the presence of hazardous wastes or other factors. This section analyzes the potential for natural and man-made hazards. Topography Pismo Beach's topography includes perpendicular bluffs, gently sloping marine terraces, and steep hillsides. Slopes exceeding 30 percent grade are generally retained as permanent public or private open space (one notable exception is the Pismo Heights Planning Area). In the Coastal Zone portion of Pismo Heights, the maximum slope that can be graded is 20 percent.The City has adopted Hillside Regulations to preserve and protect hillside areas, situate projects with the least environmental and visual impacts, and preserve significant features of the natural landscape. The City Hillside Development Standards apply to slopes of 10 percent or greater or sites where access will cross such slopes. The Planning Commission must approve a Development City of Pismo Beach Page 4-6 2020-2028 Housing Element (�(Y OF Housing Resources A�SMO B�PL� Permit or Coastal Development Permit prior to issuance of a building permit,grading permit, or tentative map approval. Projects must also comply with erosion, landscaping,grading, habitat protection, and viewshed requirements. Natural Hazards Land areas subject to hazards associated with steep slope, slope stability,and drainage issues are designated by a Hazardous Overlay and Protection Zone. Geologic reports for development in this zone may be required and reviewed by the appropriate decision-making body prior to approval. The City has bluff setback requirements for all types of development in order to retain structural integrity for a minimum of 100 years and to minimize the effects of erosion,geologic instability, or destruction of the site. For development on single-family residential lots subdivided prior to 1981, the minimum setback is 25 feet from the top of the bluff. For all other development, a site-specific geological study is required. Flooding hazards stem from Pismo Creek/Price Canyon, the Meadow Creek/Pismo Marsh drainage ways, and the ocean. The floodplain maps in Appendix D show that substantial developed areas in the commercial core and the Pismo Creek Planning Area could be subject to flooding from a 100-year storm.The majority of the Meadow Creek floodplain,within the Pismo Beach Ecological Preserve,is protected from residential development. Following flooding in 1971,however,the US Army Corps of Engineers improved the Pismo Creek Channel. New projects are subject to the requirements of the City's Floodplain Overlay Zone and Federal Emergency Management Agency (FEMA) regulations. Pismo Beach is in a seismically active area; however, no known active faults underly the City itself. The only fault known to occur in Pismo Beach is the San Miguelito fault,which lies along the east bank of Pismo Creek. However, this fault is considered inactive.The greatest potential of seismic risk is associated with the San Andreas fault, 40 miles to the east. The Nacimiento fault is a secondary source of strong ground shaking but would have a negligible effect on Pismo Beach. The potential for liquefaction, landslides, and tidal waves is present throughout the community in the event of an earthquake.The City has adopted various building codes and development review procedures to reduce such hazards. Coastal Foothills As established in General Plan Policy CO-9, all land above the 200-foot contour line is designated as permanent open space. In this designation, the maximum permitted number of dwelling units is calculated based on the amount of land up to the 250-foot contour but excludes lands on existing natural slopes greater than 30 percent. No building pads or structures are permitted above the 200-foot contour.A scenic or open space easement prohibiting development above the 200-foot contour is required to be dedicated to the City as a condition of approval of development below the 200-foot contour. City of Pismo Beach 2020-2028 Housing Element Page 4-7 �Yoll� Housing Resources A�sMo B�PL� D. Financial and Administrative Resources Developing affordable housing in a high-priced market, such as in Pismo Beach, requires access to local, state, and federal funding, as well as organizations with the expertise to build and manage affordable housing. The following financial and administrative resources are available for affordable housing development and conservation in Pismo Beach. 1. Financing Resources State Funding Sources and Information HCD and other state agencies identify funding and programs for housing (see Chart 4-4). Adoption and certification of a jurisdiction's housing element is required for many state funding sources. Chart 4-4 State Program Funding Sources — CalHome Program — Low Income Housing Fund Loan Packaging — California Housing Finance Agency Program (Ca1HFA) Tax Exempt Permanent Loan — Low Income Housing Fund Mortgage Program Banking Pools — Ca1HFA FHA Loan Program — Low Income Housing Tax Credit Program — California Self-Help Housing Program — Mobile Home Park Resident Ownership — Caltrans Surplus Land Priority Sale Program — DOE Energy Weatherization Assistance Multifamily Housing Program Program — Office of Migrant Services — DWR Surplus Property Sale — Predevelopment Loan Program — Emergency Housing and Assistance — State CDBG Program Economic Program Capital Development Development Allocation, Over the Counter — Emergency Housing and Assistance Component Program Operating Facility Grants — State CDBG Program Economic Development Allocation, Enterprise Fund — Family Housing Demonstration Program Component (FHDP) — Federal Emergency Solutions Grant State CDBG Program General, Native Program American,and Colonias Allocations — HOME Investment Partnerships Program — State CDBG Planning/Technical Assistance State Housing Assistance Council Rural Seed — Farmworker Housing Assistance Program Money Loan Programs — Farmworker Housing Grant Program — Tax-Exempt Private Activiey Bond Program — Joe Serna,Jr., Farmworker Housing Grant Program — Low Income Home Energy Assistance Program(LIHEAP) City of Pismo Beach Page 4-8 2020-2028 Housing Element (�(Y OF Housing Resources A�SMO B�PL� Inclusionary Housing Fee Funds The City's inclusionary housing program offers the option of paying a fee in lieu of building affordable housing. Fees deposited into the account must be used in the acquisition,construction,or rehabilitation of affordable housing.As of 2017,the fund has a balance of$3,360,000. 2. Administrative Resources Housing Authority of San Luis Obispo The Housing Authority of San Luis Obispo was created to provide housing assistance for the county's lower-income residents. The Housing Authority administers the Housing Choice Voucher/Section 8 rental assistance program and manages public housing developments. The Housing Authority also administers the Mortgage Credit Certificate Program,the Security Deposit Program,and other programs.Currently,the agency provides 48 Section 8 vouchers to very low-income households in Pismo Beach and maintains a waiting list that is currently closes. People's Self-Help Housing People's Self-Help Housing (PSHH) is a diverse nonprofit organization committed to furthering opportunities for decent, safe, affordable housing and support services in San Luis Obispo, Santa Barbara, and Ventura Counties. PSHH has two primary programs—a Self-Help Homeownership Program and a Rental Housing Development and Construction Services Program. Since its inception in the 1960s, PSHH has developed more than 1,200 sweat equity homes and 1,700 rental units and has assisted in the rehabilitation and repair of more than 3,000 housing units. PSHH currently owns and operates two affordable projects in Pismo Beach, Sea Haven Apartments (12 low- and very low-income units), and Pismo Creek Bungalows (14 very low-income units). PSHH also provides free seminars to residents on the Central Coast, including those aimed at first-time homebuyers and foreclosure prevention. Community Action Partnership of San Luis Obispo County (CAPSLO) CAPSLO provides a wide variety of social services in San Luis Obispo County. Their divisions are Homeless Services, Head Start, Health Services, and Energy Conservation Services. CAPSLO operates the Maxine Lewis Memorial Homeless Shelter and the Prado Day Center in San Luis Obispo. They also operate Head Start and Migrant Head Start programs and two health centers in San Luis Obispo and Arroyo Grande.The Energy Conservation division provides weatherization and home repairs throughout the county. City of Pismo Beach 2020-2028 Housing Element Page 4-9 �YOIII Housing Resources A�sMo B�PL� This page intentionally left blank. City of Pismo Beach Page 4-10 2020-2028 Housing Element Chap tee- 5 Review of the Previous Housing Element As part of the housing element update, w cities must review the progress and efficacy of existing housing goals, ° policies, and programs. Pismo Beach's 2014-2019 Housing Element considered conditions and constraints ` and set strategies to accommodate the y City's share of the region's housing production goals. This chapter summarizes the City s progress in achieving the housing goals established in the 2014-2019 Housing Element. Chart 5-1 shows the Regional Housing Needs Allocation (RHNA) for the 2014-2019 Housing Element,which had an RHNA cycle between 2014 and the end of 2018. Chart 5-1 Regional Housing Needs Allocation 2014-2019 Income Level 2014-2019 Very Low 38 Low 24 Moderate 27 Above Moderate 64 Total • 153 Source:2014-2019 Pismo Beach Housing Element A. Housing Opportunity The 2014-2019 Housing Element focused on expanding housing opportunities to low- and moderate-income persons and persons with special housing needs. To achieve this goal, the Housing Element contained programs to make more sites available for housing and several programs to encourage opportunities for affordable housing and to update zoning to comply with state law. Program HE-1 was implemented at the time of the 2014-2019 Housing Element adoption to change the zoning on a site to R-3 with the Residential Very High-Density overlay to allow higher- density affordable housing on that site.The City has also been working with affordable City of Pismo Beach 2020-2028 Housing Element Page 5-1 �YOII� Review of the Previous Housing Element A�SMo B�PL� housing developers to implement several other programs to find more sites for affordable housing. The City is updating the zoning and Local Coastal Program to implement many of the other 2014-2019 programs that call for updates to the City's zoning (see Chart 5-2 for a review of previous housing element programs). City of Pismo Beach Page 5-2 2020-2028 Housing Element �Yolll Review of the Previous Housing Element A�SMO B�PL� Chart 5-2 Review of Previous Housing Element Programs Housing Program Progress Continue/ Modify/Delete HE-1.2007-2014 Regional Housing Need In November 2019,the City rezoned a 1.2 acre Delete. In order to meet state law requirements (Government Code Sections parcel near the intersection of 41h Street and 5 65583(c)(1)(A) and 65583(c)(1)(B))to address the 2007-2014 RHNA,the City Cities Drive to R-3.The City also created a new shall amend the General Plan and the Zoning Codes,as needed,and as detailed in overlay zone—the Residential Very High Density Chapter 4 provide adequate site(s) for 26 very low-and low-income units at a (RVHD) Overlay Zone.This overlay can be minimum of 20 dwelling units per acre on certain sites or in certain zones.The 20 applied to property by the owner through a unit per acre density for owner-occupied or rental multifamily housing must be zoning map amendment to allow higher density allowed"by right"without discretionary review if 20 percent or more of the units affordable housing projects.If the RVHD in a project proposed on the site are affordable to those with lower incomes.The overlay is applied a project with 100%affordable rezoned site(s)must be able to accommodate a minimum of 16 units per site.At units deed restricted for at least 55 years must be least half(50 percent) of these sites shall be zoned for residential uses only,except developed on that parcel.The minimum density that all of the very low and low-income housing need may be accommodated on must be at least 20 units per acre and the sites designated for mixed uses if those sites allow 100 percent residential use and maximum density allowed is 50 units per acre. require that residential uses occupy 50 percent of the total floor area of a mixed- The rezoned site could accommodate up to 60 use project.The applications can be subject to design review as long as the units with its new zoning addressing the project does not trigger the CEQA review process. remaining 2017-2014 RHNA. Funding Source: General Fund Responsibility:Community Development Department Time Frame:Before or at the time of Housing Element adoption Corresponding Goal/Policy: Goals 1,2,4;Policies 4,5,6,8, 10,11, 12 HE-2.2014-2019 Regional Housing Need The City completed the rezoning described Delete. In order to ensure a sufficient selection of sites are available for higher density under Program HE-1 above in November 2019. development in Pismo Beach,the City shall amend the General Plan and the No additional rezoning was needed to meet the Zoning Codes,as needed,and as detailed in Chapter 4 provide adequate site(s) 2014-2019 lower income RHNA. for the 5d,cycle lower income RHNA at a minimum of 20 dwelling units per acre on certain sites or in certain zones.The site or sites rezoned will allow up to 50 units per acre.The 20 unit per acre density for owner-occupied or rental multifamily housing must be allowed"by right"without discretionary review if 20 percent or more of the units in a project proposed on the site are affordable to those with lower incomes.The rezoned site(s)must be able to accommodate a minimum of 16 units per site.At least half(50 percent) of these sites shall be zoned for residential uses only,except that all of the very low and low-income City of Pismo Beach 2020-2028 Housing Element Page 5-3 �Yoll� Review of the Previous Housing Element A�sMo B�PL� Housing Program Progress Continue/ M M Modify/Delete housing need may be accommodated on sites designated for mixed uses if those sites allow 100 percent residential use and require that residential uses occupy 50 percent of the total floor area of a mixed-use project.The applications can be subject to design review as long as the project does not trigger the CEQA review process. Funding Source: General Fund Responsibility:Community Development Department Time Frame:June 30,2020 Corresponding Goal/Policy: Goals 1,2,4;Policies 4,5,6,8, 10,11, 12 HE-3.Density Bonus Since adoption of the last Housing Element in Continue. The City will encourage and assist developers to utilize the density bonus 2010,no new projects have been approved with provisions of the California Government Code that allow an increase in the a density bonus.Amendments to the Zoning number of units in the underlying zone in return for construction of lower- Codes to address updates to state law regarding income housing(extremely low-,very low-,and low-income units).The City will density bonuses will happen as part of the City's also amend the Zoning Codes(both the 1983 and 1998 codes) to comply with Local Coastal Program(LCP)update that is changes in the state density bonus law(Government Code Section 65915)and currently underway.The City amended their develop an outreach program to ensure its successful implementation. zoning to include a Residential Very High Funding Source: General Fund for administration Density Overlay(RVHD)in 2019.At property owner initiation the RVHD can be applied to Responsibility:Community Development Department,City Manager parcels to allow a minimum of 20 units per acre Time Frame: Revision of the Zoning Codes by December 31,2020; and up to 50 units per acre for affordable implementation of density bonus for projects is ongoing housing project development. Corresponding Goal/Policy: Goals 2,3;Policies 1,2,8 HE-4.Code Enforcement The City performed two housing conditions Continue. As a means to ensure the quality of homes and neighborhoods,the City will surveys in 2009,one of mobile homes and one of continue to operate the code enforcement program on a complaint basis,whereby all other units.Most of the units were found to the Building Division investigates complaints and ensures that property owners be in sound condition,a few units were found to comply with City codes.Pismo Beach's housing is maintained and generally in be in need of moderate repair and 40 units were good condition.In addition,because of the high cost of land and significant found to be in need of minor repair(most of escalations in housing prices over the past few years,property owners are these were mobile homes that were considered to rehabilitating older properties or demolishing units and rebuilding them.The City be in need of repair due to the age of their will develop a pamphlet to provide financial resource information to construction materials).No units were found to homeowners. be in need of substantial repair or dilapidated. The majority of housing in need of repair was City of Pismo Beach Page 5-4 2020-2028 Housing Element (�(Y OF Review of the Previous Housing Element A�sMo B�PL� Housing Program Progress Continue/ MWE.-_ Modify/Delete Funding Source: General Fund located near Wadsworth Street,Longview Responsibility Building Division Avenue,and Placentia Avenue.No housing Time Frame: Develop pamphlet by January 2020 and ongoing conditions surveys have occurred since the 2009 surveys.The City continues its complaint-based Corresponding Goal/Policy: Goals 3,4;Policies 10,12 code enforcement work. HE-5.Contractual Agreement for Rental Assistance Program The City continues to contract with the Housing Continue. The City of Pismo Beach shall continue to contract with the Housing Authority Authority of San Luis Obispo to administer of San Luis Obispo or other agency,as appropriate,to authorize implementation Housing Choice Vouchers(Section 8)in Pismo of the HUD Housing Choice Voucher/Section 8 rental program. Beach.Forty-eight vouchers are in use in Pismo Funding Source: General Fund and HUD Beach. Responsibility:City Manager Time Frame: Seek new vouchers and/or to raise the payment standard as needed annually Corresponding Goal/Policy: Goals 3,5;Policies 5,6,7 HE-6.Simultaneous Construction of Affordable Housing Chapter 17.26,Inclusionary Housing Continue. When a project is required to provide a percentage of affordable units,the City Requirements and Affordable Housing shall require such housing to be built simultaneously or assured by bond or other Incentives,of the 1998 Zoning Code addresses acceptable security.Projects that are built in phases shall include the required projects required to provide a percentage of percentage in each phase. affordable units.The City has performed some Funding Source: General Fund analysis of its inclusionary requirements since adoption of the previous Housing Element but Responsibility:Community Development Department,Engineering Division has not made any revisions to the inclusionary Time Frame: When projects are submitted that are subject to this program requirements in Chapter 17.26.No projects Corresponding Goal/Policy: Goals 2,3,5;Policies 3,8 subject to the inclusionary housing requirements have been built since adoption of the previous housing element. City of Pismo Beach 2020-2028 Housing Element Page 5-5 �Yoll� Review of the Previous Housing Element A�sMo B�PL� Housing Program Progress Continue/ Modify/Delete HE-7.Public-Private Partnerships The City maintains active and open Continue. The City will partner with the development community to facilitate higher-density communication with affordable housing residential development to diversify the housing stock.Specifically,the City will: developers such as People's Self-Help Housing (PSHH),and private developers such as Coastal • Contact potential affordable housing developers. Community Builders(CCB) to obtain low- Conduct a roundtable meeting to discuss constraints to affordable income housing.Regulatory concessions are housing,workforce housing,and potential developer incentives. provided through both state law and the City's • Maintain an inventory of adequate sites. density bonus ordinance.The inventory of adequate sites was updated in late 2019. • Identify funding opportunities and assist in preparing applications for Interviews with developers occurred in 2018 in funds. order to gather input regarding housing in the • Work with housing sponsors to help with scores for readiness and City. neighborhood revitalization. • Provide regulatory concessions and incentives,as necessary,to encourage and facilitate the construction of affordable housing(e.g.,reduce parking, revise landscaping requirements,density bonuses,expedited permit process,fee waivers or deferrals). Funding Source: Grants;private development community Responsibility:Community Development Department Time Frame: 2019 and ongoing Corresponding Goal/Policy: Goals 1,2,3;Policies 1,2,3,7,8 HE-8.Equity Sharing Program There is no City funding source for this program. Continue The City shall participate in an equity sharing program when funds are identified The City works with organizations such as to assist low-and moderate-income individuals who work in Pismo Beach to PSHH and Habitat for Humanity,which have purchase or rehabilitate housing.The equity sharing arrangement could be "sweat equity"programs that exchange between the property owner,the City,and the developer.The City does not construction work by the household in lieu of a currently have funds available for this program. down payment. Funding Source:Private funding sources(for homeowner),nonprofit corporations(e.g.,People's Self-Help Housing and Santa Barbara Community Housing),other grants and loans,as appropriate Responsibility:City Manager,Community Development Department Time Frame: When funds are identified Corresponding Goal/Policy: Goals 2,5;Policies 5,6,8,10 City of Pismo Beach Page 5-6 2020-2028 Housing Element (�(Y OF Review of the Previous Housing Element A�sMo B�PL� Housing Program IA ess Continue/ Modify/Delete HE-9.Conversion of Rental Housing There have been no conversions of existing Continue. The City shall consider the effects on the rental housing market in reviewing apartment buildings since adoption of the requests for conversions of rental units to condominium ownerships.Provisions Housing Element in 2019. for conversions shall include the following requirements: (1)written notification to tenants of the intent to convert at least six months prior to approval of application(per Government Code 66427.1);and(2) first right of refusal to existing tenants to purchase the unit. Funding Source: General Fund,State Homeowner Assistance Program, federal Section 234(c)mortgage insurance for purchase of condominium units Responsibility:Community Development Department,Finance Department Time Frame: When conversion requests are submitted Corresponding Goal/Policy: Goal 4;Policies 1,2,7,11 HE-10.Demolition or Conversion of Rental Housing in Coastal Zone No affordable or moderate-income units were Continue. The City may issue permits for the demolition or conversion of housing occupied demolished since adoption of the Housing by low-to moderate-income persons in the Coastal Zone when the applicant Element in 2019. meets certain conditions,including providing relocation assistance and replacement of affordable units (See Government Code 65590). Funding Source: General Fund Responsibility:Community Development Department,City Manager Time Frame: When requests for demolition or conversion are submitted Corresponding Goal/Policy: Goal 4;Policies 1,2,7 HE-11. Special Needs The City is currently working with HASLO on a Continue. The City will work with housing providers to ensure that special housing needs 22-unit affordable project for seniors at 2655 are addressed for seniors,large families,female-headed households,single-parent Shell Beach Road.No formal application has households with children,farmworkers,persons with disabilities and been received but the City Council will soon developmental disabilities,and homeless individuals and families.The City will consider preliminary allocation of funds. seek to meet these special housing needs through a combination of regulatory incentives,zoning standards,new housing construction programs,and supportive services programs.Incentives and programs the City offers include density bonuses and a reasonable accommodation procedure.The City will also continue to work with lower-income housing providers and funders to construct or acquire City of Pismo Beach 2020-2028 Housing Element Page 5-7 �Yoll� Review of the Previous Housing Element A�sMo B�PL� Housing Program Progress Continue/ Ism Modify/Delete a variety of types of lower-income housing opportunities for individuals and groups with special needs and extremely low-income households if any applicants come forward.Specific housing types include: • Smaller units,including single-room occupancy units(see Program HE- 29). • Senior housing,including assisted living facilities (see Program HE-12). • Units with special adaptations for people with disabilities,per California Title 24 standards. In addition,if staffing resources allow,the City may seek funding under CDBG, HOME Investment Partnerships,federal HOPWA,California Child Care Facilities Finance Program,and other state and federal programs designated specifically for special needs groups such as seniors,persons with disabilities,and persons at risk for homelessness. Funding Source:Federal HOPWA,CDBG,HOME Investment Partnerships,California Child Care Facilities Finance Program,and other state and federal programs designated specifically for special needs groups Responsibility:Community Development Department Time Frame: Seek funding annually and ongoing Corresponding Goal/Policy: Goals 2,5;Policies 1,5,6,8,10,13 HE-12. Senior Housing Incentives No amendments have been made to the Zoning Continue. As an incentive to providing senior housing,the City will allow modifications to Codes.However,state law provides incentives in building lot coverage,lot size,parking requirements,and setbacks as provided for the form of density bonus and concessions or in Program HE-16.The City will also amend the Zoning Codes to specify relaxed development standards for senior standards and criteria for the modifications. housing.These zoning amendments will be made Funding Source: General Fund as part of the LCP update. Responsibility:Community Development Department Time Frame: Amend the Zoning Codes by December 31,2020 Corresponding Goal/Policy: Goals 1,2,5;Policies 1,8,13 City of Pismo Beach Page 5-8 2020-2028 Housing Element (�(Y OF Review of the Previous Housing Element A�sMo B�PL� Housing Program Progress Continue/ Modify/Delete HE-13.Workforce and Affordable Housing Incentives The Zoning Codes have not been amended to Amend and As an incentive to providing workforce and affordable housing in the downtown revise the requirements for multifamily housing continue. core,the City will place a mixed-use overlay on the downtown.Modifications to and to specify standards and criteria.When the building lot coverage,lot size,parking requirements,and setbacks will be zoning is amended as part of the LCP update,an permitted without a variance for residential or mixed-use projects with a finding overlay should be implemented to address the that a certain percentage of units are affordable to lower-or moderate-income need for multifamily housing consistent with the households.In particular,the City will evaluate the multi-family parking Coastal Act.In addition,some areas of the City requirements,then review and revise those requirements for one-bedroom and are zoned Planned Residential,which allows studio units to ensure requirements do not unduly constrain housing flexibility on some development standards.Also, development.The City will also amend the Zoning Codes to include the mixed- as noted above,state law allows for certain use overlay and specify standards and criteria for the modifications as referenced concessions on affordable projects. in Program HE-16. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Amend Zoning Codes by December 31,2020 Corresponding Goal/Policy: Goals 1,2,3;Policies 1,2,3,8 HE-14.Workforce and Affordable Housing Entitlements These types of incentives have not been Continue. The City shall consider options,such as a planned unit development(PUD) or formalized.Some areas of the City are zoned other type of permit,to encourage the development of workforce and affordable Planned Residential,which allows flexibility on housing throughout Pismo Beach.Incentives included in the permit to encourage some development standards.Also,as noted workforce housing could include expedited permit processing or modifications to above,state law allows for certain concessions on building lot coverage,lot size,parking requirements,and setbacks. affordable projects.Whether to make any Funding Source: General Fund additional changes related to this program will be determined during the LCP update. Responsibility:Community Development Department Time Frame: Establish incentives and update Zoning Codes(if necessary)by December 31,2020 Corresponding Goal/Policy: Goals 1,2,3,5;Policies 8,9 City of Pismo Beach 2020-2028 Housing Element Page 5-9 �Yoll� Review of the Previous Housing Element A�sMo B�PL� Housing Program Progress Continue/ Modify/Delete HE-15.Revision to C-1 Zone No change has been made to the allowed Continue. The C-1 zone allows residential uses as part of a mixed-use project at one unit per residential density in the C-1 zone.These 1,500 square feet of site area.The City will consider an amendment to the C-1 amendments will be included in the LCP update. zone to increase the residential density in the zone. Funding Source: General Fund Responsibility: Community Development Department Time Frame: Amend C-1 zone by December 31,2020 Corresponding Goal/Policy: Goals 1,3;Policies 1,2,3 HE-16.Multi-Family Zone Densities The Zoning Codes have not been amended to Continue. The Pismo Beach Zoning Codes allow the construction of single-family prohibit new single-family homes in medium- residences in multiple-family zones.This practice does not always result in the and high-density areas,although it is rare that most efficient use of resources and may hamper the City's ability to achieve its this type of development is proposed.These regional housing needs goals.Thus,the Zoning Codes shall be amended to amendments will be made as part of the LCP prohibit new single-family homes in medium-and high-density residential areas, update.Accessory dwelling units(ADUs)would unless a lot is substandard in size and cannot accommodate more than one unit. still be allowed in those zones due to recent The City will amend the Zoning Codes to include minimum densities in the R-2, changes in state law that allow an ADU with a R-3,RS-M,RR-L,R-4,RR,and RR-H districts to preserve the limited supply of primary single or multifamily unit. multi-family zoned land for multi-family uses. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Amend Zoning Codes by December 31,2020 Corresponding Goal/Policy: Goal 2;Policies 1,2,11 HE-17.Nonconforming Lots Legal nonconforming lots allow residential units Amend and Pismo Beach was subdivided many years before the formal adoption of a Zoning to be built on them.The Planning Commission continue. Code.Many lots in the community are substandard when current standards are can grant exceptions to minimum development applied.It is common to seek a variance to develop a parcel in certain areas. standards where projects do not comply. The Moreover,a number of contiguous,often small and irregularly shaped lots are City will consider a director-level exemption "underutilized."The Zoning Codes could be amended to facilitate and encourage moving forward. the development of quality market-rate and affordable housing on these lots.The City will consider developing an exception process for nonconforming lots that includes a flexible approval process and development standards beyond the exceptions that can currently be granted by the Planning Commission.Lot City of Pismo Beach Page 5-10 2020-2028 Housing Element (�(Y OF Review of the Previous Housing Element A�sMo B�PL� Housing Program Progress Continue/ Modify/Delete consolidation regulations could also help to merge otherwise substandard and underutilized sites. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Amend Zoning Codes within three years of Housing Element adoption if decision is made to make amendments as a result of program implementation. Corresponding Goal/Policy: Goals 1,2,3;Policies 1,2,3,8 HE-18.Zoning Code Update The City has not yet received certification of its Continue. In 1998,the City updated the Zoning Code for the entirety of Pismo Beach. 1998 Zoning Code from the Coastal However,the Coastal Commission did not certify the 1998 Zoning Code due to Commission.This program will be addressed in policy differences on bluff lots and development.Thus,Pismo Beach currently the LCP update currently underway. operates under two Zoning Codes (1983 and 1998).The City's 1983 Zoning Code applies to the two-thirds of the community located within the Coastal Zone.The City initiated a project to amend the Local Coastal Program,including the coastal zoning regulations this spring.The City Council is in favor of this amendment, and it is a major city goal to complete the amendment over the next few years. Developing a consolidated code will assist developers and property owners to identify development requirements,as well as provide a more streamlined approach to the approval process.Some specific potential constraints the City will analyze as part of the update include: • Multifamily in R-4 requiring a CUP within the coastal zone • Revising the open space requirement(currently it is 400 square feet per unit plus an additional 75 square feet per bedroom) • Evaluating criterion(4)in the planning commission site plan and architectural review approval findings and how it is different from criterion(1) Funding Source: General Fund Responsibility:Community Development Department Time Frame: Complete zoning code update by December 31,2020 Corresponding Goal/Policy: Goal 3;Policies 2,7 City of Pismo Beach 2020-2028 Housing Element Page 5-11 �YOII� Review of the Previous Housing Element A�sMo B�PL� Housing Program AL gress Continue/ Modify/Delete HE-19.Housing Rehabilitation Since 2014,CAPSLO has conducted energy Continue. The City will encourage local private and nonprofit organizations to assist elderly, efficiency and weatherization improvements for disabled,and disadvantaged persons in the repair and rehabilitation of their 99 homes in Pismo Beach.They have also made housing,including mobile homes.The City uses CDBG funds for these services, repairs on 105 homes during the same time which are provided by CAPSLO. The minor home repair program is available at period. no cost to seniors age 60 or over.They may include improvements such as grab bars,handrails,smoke alarms and carbon monoxide detectors,minor plumbing, carpentry,electrical and drywall work. Funding Source: CDBG;Private or nonprofit funding;grants Responsibility:Community Development Department Time Frame: Implementation of program is ongoing Corresponding Goal/Policy: Goals 4,5;Policies 3,6,7,8,13 HE-20.Accessory Dwelling Units A new accessory dwelling unit(ADU)ordinance Amend and The City shall continue to encourage the development of accessory dwelling units was adopted by the City Council in 2018.The continue. (ADUs) as a tool to provide affordable housing in the community.The City City continues to make information about ADUs updated its zoning in 2018 to put an ADU ordinance in place to address local available on the City website and in the City needs and comply with recent changes to state law.The City will continue to newsletter,the Clam Chronicle.The City will make information about ADUs available on the City website and in the City make additional updates during the LCP update newsletter,the Clam Chronicle. for consistency with new changes to state law Funding Source: General Fund since 2018. Responsibility:Community Development Department Time Frame: Update zoning through the rest of the planning period if additional updates are made to state law;Making information available is ongoing Corresponding Goal/Policy: Goal 2;Policies 1,2, 11 City of Pismo Beach Page 5-12 2020-2028 Housing Element (�(Y OF Review of the Previous Housing Element A�sMo B�PL� Housing Program Progres Continue/ Modify/Delete HE-21.Housing Preservation The City continues to monitor existing Continue. The City will work to reduce the potential conversion of the 12 assisted affordable projects and units.No affordable affordable housing units at risk during the current planning period to market rate units have converted to market rate since through the following actions: adoption of the previous Housing Element. • Monitor the status of affordable projects,rental projects,and mobile homes in Pismo Beach.Should the property owners indicate the desire to convert properties,consider providing technical and financial assistance, when possible,to ensure long-term affordability. • If conversion of units is likely,work with local service providers as appropriate to seek funding to subsidize the at-risk units in a way that mirrors the HUD Housing Choice Voucher(Section 8)program.Funding sources may include state or local funding sources. Per state law,owners of deed-restricted affordable projects are required to provide notice of restrictions that are expiring after January 1,2021,to all prospective tenants,existing tenants,and the City within three years of the scheduled expiration of rental restrictions. Owners shall also refer tenants of at- risk units to educational resources regarding tenant rights and conversion procedures and information regarding Section 8 rent subsidies and any other affordable housing opportunities in the city. If a development is offered for sale,HCD must certify persons or entities that are eligible to purchase the development and to receive notice of the pending sale. Placement on the eligibility list will be based on experience with affordable housing. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Revision of Zoning Codes by December 2019 to require notification by owners consistent with state law;ongoing communication with owners,service providers,and eligible potential purchasers Corresponding Goal/Policy: Goal 4;Policies 1,5,6,7 City of Pismo Beach 2020-2028 Housing Element Page 5-13 �Yoll� Review of the Previous Housing Element A�sMo B�PL� Housing Program ELProgress Continue/ Modify/Delete HE-22.Fair Housing—Zoning Code Amendments The 1983 Zoning Code has not been amended to Continue. In compliance with state law,the City will amend the 1983 Zoning Code for the allow small residential care facilities serving six or Coastal Zone to allow small residential care facilities serving six or fewer clients in fewer clients in all residential zones in the all residential zones without a Conditional Use Permit. Coastal Zone without a Conditional Use Permit. Funding Source: General Fund Responsibility:Community Development Department Time frame:Amend 1983 Zoning Code by December 31,2020 Corresponding Goal/Policy: Goal 5;Policies 1, 13 HE-23.Fair Housing—Access to Mediation and Fair Housing Services The City has continued to refer people to fair Continue. The City will coordinate with San Luis Obispo County to provide access to housing services and will provide a brochure on landlord and tenant mediation and fair housing services.The City will also fair housing. develop a fair housing brochure or acquire one from a fair housing provider and distribute it at City Hall,the library,and the post office. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Provide or develop brochure within one year of Housing Element adoption Corresponding Goal/Policy: Goal 5;Policies 7, 14 HE-24.Transitional Housing The Zoning Codes have not been amended to Combine this The City shall amend the Zoning Codes to comply with SB 2 and define allow transitional and supportive housing to program with transitional and supportive housing as permitted residential uses only subject to comply with Senate Bill 2.These revisions will be Program HE-30 the same restrictions that apply to other residential uses of the same type in the made as part of the LCP update. from the same zone. previous Funding Source: General Fund Housing Element and Responsibility:Community Development Department continue. Time Frame: Amend Zoning Codes by December 31,2020 Corresponding Goal/Policy: Goal 5;Policy 13 City of Pismo Beach Page 5-14 2020-2028 Housing Element (�(Y OF Review of the Previous Housing Element A�sMo B�PL� Housing Program IL Progress Continue/ Modify/Delete HE-25.Reasonable Accommodation The City approved a reasonable accommodation Delete. The City's approach to providing people with disabilities reasonable procedure in 2013.It is codified in the 1998 accommodation in rules,policies,practices,and procedures that may be necessary Zoning Code as Chapter 17.04. to ensure equal access to housing is codified in the 1998 Zoning Code,Chapter 17.04.The City will continue to promote its reasonable accommodation procedures on its website and with educational material at City Hall. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Ongoing Corresponding Goal/Policy: Goals 3,5;Policies 1,13 HE-26.Employee Housing Act The Zoning Codes have not been reviewed and Continue. To comply with the state Employee Housing Act(Health and Safety Code amended if needed to allow employee housing Sections 17021.5 and 17021.6),the City will review the Zoning Codes and amend per the Employee Housing Act.This analysis and them as necessary.Health and Safety Code Section 17021.5 requires the Zoning if needed,revisions will be made as part of the Codes to treat employee/farmworker housing that serves six or fewer persons as LCP update. a single-family structure and permitted in the same manner as other single-family structures of the same type in the same zone in all zones allowing single-family residential uses.Section 17021.6 requires that employee/farmworker housing consisting of no more than 12 units or 36 beds be treated as an agricultural use and permitted in the same manner as other agricultural uses in the same zone. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Review Zoning Codes by December 2019;make amendments if needed by June 2020 Corresponding Goal/Policy: Goal 5;Policies 1,9, 13 HE-27.Extremely Low-Income Households The City maintains active and open Continue. The City will meet with nonprofit developers and other stakeholders biannually to communication with affordable housing establish and implement a strategy to assist in the development of housing developers such as People's Self-Help Housing affordable to extremely low-income households.As part of this effort,the City (PSHH),Housing Authority of San Luis Obispo will also consider prioritizing local financial resources and at least biannually seek (HASLO),and private developers such as and apply for state and federal funding specifically targeted for the development Coastal Community Builders (CCB) to obtain of housing affordable to extremely low-income households.The City will provide low-income housing.Regulatory concessions are provided through both state law and the Ci 's City of Pismo Beach 2020-2028 Housing Element Page 5-15 �Yoll� Review of the Previous Housing Element A�sMo B�PL� Housing Program Continue/ Modify/Delete concessions and incentives to assist in the development of housing for extremely density bonus ordinance.Interviews with low-income households such as increased densities,modifications to developers occurred in 2018 in order to gather development standards,and priority processing.Also,per AB 2634,to further input regarding housing in the City.The LCP meet the needs of extremely low-income households,the City will also amend the update will reflect current legislation to allow Zoning Codes to define and allow single-room occupancy units with a single-room occupancy units in certain zoning Conditional Use Permit in the R-4,R-R,and High Density Residential zone. districts. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Update Zoning Codes by December 31,2020;ongoing and at least biannual contact with stakeholders,depending on funding programs Corresponding Goal/Policy: Goals 2,3;Policies 5,6,7,8,10 HE-28. State Energy Efficiency Standards The City has encouraged residential developers Amend and The City will implement state requirements for energy conservation in new to employ additional energy conservation continue. residential projects and encourage residential developers to employ additional measures through design guidelines that discuss energy conservation measures with respect to siting of buildings,landscaping,and solar access,drought-tolerant landscape,and solar orientation.To facilitate implementation,the City will make available,in the other types of passive energy/resource- Community Development Department and Building Division,brochures from conserving techniques. PG&E that detail energy conservation measures for existing buildings and for new construction. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Ongoing Corresponding Goal/Policy: Goal 6;Policy 15 City of Pismo Beach Page 5-16 2020-2028 Housing Element (�(Y OF Review of the Previous Housing Element A�sMo B�PL� Housing Program Progress Continue/ Modify/Delete HE-29.Public Outreach and Education The City posts issues related to housing policies Continue. The City shall establish outreach and education programs to increase public on its website and through its newsletter,the awareness of housing policies and issues as they arise.Such efforts may include Clam Chronicle. mailed notices to the public,posts on the City's website,and printed educational The City submits Housing Element annual materials,as appropriate.In addition,the City shall submit to HCD an annual reports to HCD. report for progress in implementing the City's Housing Element,as required by state law. Funding Source: General Fund Responsibility:Community Development Department Time Frame: Submit annual reports annually by April 1;conduct outreach and education as needed Corresponding Goal/Policy: Goal 5;Policy 7 HE-30. Supportive Housing The Zoning Codes have not been amended to Combine this The City shall review its zoning codes to ensure compliance with AB 2162 related allow supportive housing per AB 2162.These program with to allowing supportive housing.The zoning codes will be reviewed to assess revisions will be made as part of the LCP update. Program HE-24 whether supportive housing is allowed without discretionary review(besides from the coastal permits)in all zones that allow multifamily housing or mixed-use previous development,including nonresidential zones as applicable.If it is determined that Housing the allowed uses in the zoning codes are not in compliance with AB 2162 the City Element and will revise the allowed uses along with corresponding development standards as continue. detailed in AB 2162. Funding Source: General Fund Responsibility:Community Development Department Time Frame: If determined to be necessary,revise zoning codes by December 31,2020 as part of the update to the LCP/zoning ordinance. Corresponding Goal/Policy: Goals 1,3,5;Policy 13 City of Pismo Beach 2020-2028 Housing Element Page 5-17 �YOIII Review of the Previous Housing Element A�sMo B�PL� This page intentionally left blank. City of Pismo Beach Page 5-18 2020-2028 Housing Element Chap tee- 6 Goals, Policies, and Programs This chapter identifies housing goals, policies, and programs for the City of Pismo Beach. Housing programs define the actions the City will use to enact policies and achieve housing goals. Proposed programs include providing adequate sites for a variety of housing types, density bonus incentives, updates to zoning, minimum densities, maintaining the existing housing stock, housing for special needs groups, funding strategies, strategies for irregular parcels, fair housing, and energy conservation. In order to make adequate provisions for the housing needs of all economic segments, the City has developed the following goals: 1) Identify sites with appropriate zoning and services to facilitate and encourage the development of a variety of alternative housing types for all income levels; 2) Assist in the development of adequate housing to meet the needs of lower-income and moderate-income households; 3) Address and, where appropriate and legally permissible, remove governmental constraints to the maintenance, improvement, and development of housing for people of all income levels and needs; 4) Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action; 5) Promote housing opportunities for all persons regardless of race,religion,gender, marital status, ancestry, national origin, color, familial status, or disability; and 6) Preserve the unique environmental features of Pismo Beach and ensure there is adequate water, wastewater treatment, roads, parks, and other necessary infrastructure for new housing development. Additionally, the following policies have been developed to complement these goals: 1) Provide a range of residential densities in the General Plan and Zoning Codes that permit a variety of housing types, including single-family homes, condominiums, rental apartments,mobile homes, and manufactured housing; City of Pismo Beach 2020-2028 Housing Element Page 6-1 �Yoll� Goals, Policies, and Programs A�SMo B�PLz 2) Promote efficient land use patterns and encourage more intense development near services; 3) Encourage residential development of high architectural and physical quality that is compatible with neighboring land uses; 4) Maintain an inventory of sites suitable for housing to accommodate the City's share of regional housing needs; 5) Seek appropriate private, local, state, and federal funding to implement housing programs for extremely low-,very low-,low-,and moderate-income households; 6) Maintain and expand relationships with nonprofit housing agencies with the goal of providing more affordable housing; 7) Assume a leadership role in attaining the goals of the City's Housing Element and encourage public participation by all economic segments; 8) Offer incentives to developers (profit and nonprofit) for affordable housing, such as modified parking standards to minimize the cost of parking; 9) Consider programs to provide workforce housing in Pismo Beach,particularly for those in the service industry; 10) Utilize state and federal funds to assist in creating affordable housing and rehabilitating unsound housing structures; 11) Promote smaller rental units and a variety of housing types, such as courtyard housing, studios, and live/work units; 12) Promote the continued maintenance of existing mobile home parks; 13) Accommodate and promote the development of housing for those with special needs, such as shelters for the homeless; transitional housing;housing for seniors, extremely low-income households, large families, and female-headed households; and housing for persons with physical, developmental, or mental disabilities. 14) Designate a point of contact for referral of discrimination complaints; and 15) Promote energy conservation and ensure all new development complies with state law regarding energy use and conservation. Chart 6-1 summarizes the quantified objectives for the development, rehabilitation, and preservation of housing in the community over the 2020-2028 planning period. Programs to achieve these objectives are described in detail on the following pages. City of Pismo Beach Page 6-2 2020-2028 Housing Element �Yoll� Goals, Policies, and Programs A�SMo B�PLz Chart 6-1 Quantified Objectives for the 2020-2028 Housing Element Quantified Objectives by Income Group Extremely Very Low Low Moderate Above Totals Low Income Income Income Moderate Income Regional Housing Needs 56 57 71 82 193 459 Allocation Residential Units Permitted/Constructed since 0 0 1 1 35 37 1/1/2019 New Construction Objectives 56 57 70 81 158 422 Housing Preservation 0 20 6 0 0 26 Objectives Housing Rehabilitation 1 2 2 0 0 5 Objectives Source:SLOCOG 2019;City of Pismo Beach 2020 HE-1. Density Bonus The City will encourage and assist developers to utilize the density bonus provisions of the California Government Code that allow an increase in the number of units in the underlying zone in return for construction of lower-income housing (extremely low-, very low-, and low-income units). The City will also amend the Zoning Codes (both the 1983 and 1998 codes) to comply with changes in the state density bonus law (Government Code Section 65915) and develop an outreach program to ensure its successful implementation. Funding Source: General Fund for administration Responsibility: Community Development Department, City Manager Time Frame: Revision of the Zoning Codes by December 31, 2021; implementation of density bonus for projects is ongoing Corresponding Goal/Policy: Goals 2, 3;Policies 1, 2, 8 HE-2. Code Enforcement As a means to ensure the quality of homes and neighborhoods, the City will continue to operate the code enforcement program on a complaint basis, whereby the Community Development Department investigates complaints and ensures that property owners comply with City codes. Pismo Beach's housing is maintained and generally in good condition. In addition, because of the high cost of land and significant escalations in housing prices over the past few years, property owners are rehabilitating older properties or demolishing units and rebuilding them.The City will develop a pamphlet to provide financial resource information to homeowners. City of Pismo Beach 2020-2028 Housing Element Page 6-3 �Yoll� Goals, Policies, and Programs A�SMo B�PLz Funding Source: General Fund Responsibility: Community Development Department Time Frame: Develop pamphlet by January 2021 and ongoing Corresponding Goal/Policy: Goals 3, 4;Policies 10, 12 HE-3. Contractual Agreement for Rental Assistance Program The City shall continue to contract with the Housing Authority of San Luis Obispo or other agency, as appropriate, to authorize implementation of the U.S. Department of Housing and Urban Development (HUD) Housing Choice Voucher/Section 8 rental program. Funding Source: General Fund and HUD Responsibility: City Manager Time Frame: Seek new vouchers and/or to raise the payment standard as needed annually Corresponding Goal/Policy: Goals 3, 5;Policies 5, 6, 7 HE-4. Simultaneous Construction of Affordable Housing When a project is required to provide a percentage of affordable units, the City shall require such housing to be built simultaneously or assured by bond or other acceptable security. Projects that are built in phases shall include the required percentage in each phase. Funding Source: General Fund Responsibility: Community Development Department, Engineering Division Time Frame: When projects are submitted that are subject to this program Corresponding Goal/Policy: Goals 2, 3, 5; Policies 3, 8 HE-5. Public-Private Partnerships The City will partner with the development community to facilitate higher-density residential development to diversify the housing stock. Specifically, the City will: - Contact potential affordable housing developers. - Conduct a roundtable meeting to discuss constraints to affordable housing, workforce housing, and potential developer incentives. - Maintain an inventory of adequate sites. - Identify funding opportunities and assist in preparing applications for funds. City of Pismo Beach Page 6-4 2020-2028 Housing Element �YOII� Goals, Policies, and Programs A�SMo B�PLz - Work with housing sponsors to help with scores for readiness and neighborhood revitalization. - Provide regulatory concessions and incentives, as necessary, to encourage and facilitate the construction of affordable housing (e.g., reduce parking, revise landscaping requirements, density bonuses, expedited permit process, fee waivers or deferrals). Funding Source: Grants;private development community Responsibility: Community Development Department Time Frame: 2021 and ongoing Corresponding Goal/Policy: Goals 1, 2, 3; Policies 1, 2, 3, 7, 8 HE-6. Equity Sharing Program The City shall participate in an equity sharing program when funds are identified to assist low- and moderate-income individuals who work in Pismo Beach to purchase or rehabilitate housing.The equity sharing arrangement could be between the property owner, the City, and the developer. The City does not currently have funds available for this program. Funding Source: Private funding sources (for homeowner), nonprofit corporations (e.g., People's Self-Help Housing and Santa Barbara Community Housing), other grants and loans, as appropriate Responsibility: City Manager, Community Development Department Time Frame: When funds are identified Corresponding Goal/Policy: Goals 2, 5;Policies 5, 6, 8, 10 HE-7. Conversion of Rental Housing The City shall consider the effects on the rental housing market in reviewing requests for conversions of rental units to condominium ownerships. Provisions for conversions shall include the following requirements: (1) written notification to tenants of the intent to convert at least six months prior to approval of application (per Government Code 66427.1); and (2) first right of refusal to existing tenants to purchase the unit. Funding Source: General Fund, State Homeowner Assistance Program, federal Section 234(c) mortgage insurance for purchase of condominium units Responsibility: Community Development Department, Finance Department Time Frame: When conversion requests are submitted Corresponding Goal/Policy: Goal 4; Policies 1, 2, 7, 11 City of Pismo Beach 2020-2028 Housing Element Page 6-5 �Yoll� Goals, Policies, and Programs A�SMo B�PLz HE-8. Demolition or Conversion of Rental Housing in Coastal Zone The City may issue permits for the demolition or conversion of housing occupied by low- to moderate-income persons in the Coastal Zone when the applicant meets certain conditions, including providing relocation assistance and replacement of affordable units (see Government Code 65590). Funding Source: General Fund Responsibility: Community Development Department, City Manager Time Frame: When requests for demolition or conversion are submitted Corresponding Goal/Policy: Goal 4; Policies 1, 2, 7 HE-9. Special Needs The City will work with housing providers to ensure that special housing needs are addressed for seniors, large families, female-headed households, single-parent households with children, farmworkers, persons with disabilities and developmental disabilities, and homeless individuals and families. The City will seek to meet these special housing needs through a combination of regulatory incentives, zoning standards, new housing construction programs, and supportive services programs. Incentives and programs the City offers include density bonuses and a reasonable accommodation procedure. The City will also continue to work with lower-income housing providers and fenders to construct or acquire a variety of types of lower- income housing opportunities for individuals and groups with special needs and extremely low-income households if any applicants come forward. Specific housing types include: — Smaller units,including single-room occupancy units (see Program HE-26). — Senior housing,including assisted living facilities (see Program HE-10). — Units with special adaptations for people with disabilities, per California Title 24 standards. In addition, if staffing resources allow, the City may seek funding under Community Development Block Grants (CDBG), HOME Investment Partnerships, federal Housing Opportunities for Persons with AIDS (HOPWA), California Child Care Facilities Finance Program, and other state and federal programs designated specifically for special needs groups such as seniors, persons with disabilities, and persons at risk for homelessness. Funding Source: Federal HOPWA, CDBG, HOME Investment Partnerships, California Child Care Facilities Finance Program, and other state and federal programs designated specifically for special needs groups City of Pismo Beach Page 6-6 2020-2028 Housing Element �Yoll� Goals, Policies, and Programs A�SMo B�PLz Responsibility: Community Development Department Time Frame: Seek funding annually and ongoing Corresponding Goal/Policy: Goals 2, 5;Policies 1, 5, 6, 8, 10, 13 HE-10. Senior Housing Incentives As an incentive to providing senior housing, the City will allow modifications to building lot coverage, lot size, parking requirements, and setbacks as provided for in Program HE-14. The City will also amend the Zoning Codes to specify standards and criteria for the modifications. Funding Source: General Fund Responsibility: Community Development Department Time Frame: Amend the Zoning Codes by December 31,2021 Corresponding Goal/Policy: Goals 1, 2, 5; Policies 1, 8, 13 HE-11. Workforce and Affordable Housing Incentives As an incentive to providing workforce and affordable housing in the downtown core, the City will place an overlay on the downtown to address the need for multifamily housing. Modifications to building lot coverage, lot size, parking requirements, and setbacks will be permitted without a variance for residential or mixed-use projects with a finding that a certain percentage of units are affordable to lower- or moderate- income households. In particular, the City will evaluate the multifamily parking requirements,then review and revise those requirements for one-bedroom and studio units to ensure requirements do not unduly constrain housing development. The City will also amend the Zoning Codes to include the overlay and specify standards and criteria for the modifications as referenced in Program HE-14, consistent with the Coastal Act. Funding Source: General Fund Responsibility: Community Development Department Time Frame: Amend Zoning Codes by December 31, 2021 Corresponding Goal/Policy: Goals 1, 2, 3; Policies 1, 2, 3, 8 HE-12. Workforce and Affordable Housing Entitlements The City shall consider options, such as a planned unit development (PUD) or other type of permit, to encourage the development of workforce and affordable housing throughout Pismo Beach. Incentives included in the permit to encourage workforce housing could include expedited permit processing or modifications to building lot coverage,lot size,parking requirements, and setbacks. Funding Source: General Fund Responsibility: Community Development Department City of Pismo Beach 2020-2028 Housing Element Page 6-7 �Yoll� Goals, Policies, and Programs A�SMo B�PLz Time Frame: Establish incentives and update Zoning Codes (if necessary) by December 31,2021 Corresponding Goal/Policy: Goals 1, 2, 3, 5; Policies 8, 9 HE-13. Revision to C-1 Zone The C-1 zone allows residential uses as part of a mixed-use project at one unit per 1,500 square feet of site area.The City will consider an amendment to the C-1 zone to increase the residential density in the zone. Funding Source: General Fund Responsibility: Community Development Department Time Frame: Amend C-1 zone by December 31, 2021 Corresponding Goal/Policy: Goals 1, 3;Policies 1, 2, 3 HE-14. Multifamily Zone Densities The Pismo Beach Zoning Codes allow the construction of single-family residences in multiple-family zones.This practice does not always result in the most efficient use of resources and may hamper the City's ability to achieve its regional housing needs goals. Thus, the Zoning Codes shall be amended to prohibit new single-family homes in medium- and high-density residential areas, unless a lot is substandard in size and cannot accommodate more than one unit. The City will amend the Zoning Codes to include minimum densities in the R-2, R-3,RS-M,RR-L,R-4,RR, and RR-H districts to preserve the limited supply of multifamily zoned land for multifamily uses. Funding Source: General Fund Responsibility: Community Development Department Time Frame: Amend Zoning Codes by December 31, 2021 Corresponding Goal/Policy: Goal 2; Policies 1, 2, 11 HE-15. Nonconforming Lots Pismo Beach was subdivided many years before the formal adoption of a Zoning Code. Many lots in the community are substandard when current standards are applied.It is common to seek a variance to develop a parcel in certain areas.Moreover, numerous contiguous,often small and irregularly shaped lots are"underutilized."The Zoning Codes could be amended to facilitate and encourage the development of quality market-rate and affordable housing on these lots. The City will consider developing a director-level approval exception process for nonconforming lots that includes a flexible approval process and development standards beyond the exceptions that can currently be granted by the Planning Commission. Lot consolidation regulations could also help to merge otherwise substandard and underutilized sites. Funding Source: General Fund City of Pismo Beach Page 6-8 2020-2028 Housing Element �Yoll� Goals, Policies, and Programs A�SMo B�PLz Responsibility: Community Development Department Time Frame: Amend Zoning Codes within three years of Housing Element adoption if decision is made to make amendments as a result of program implementation. Corresponding Goal/Policy: Goals 1, 2, 3; Policies 1, 2, 3, 8 HE-16. Zoning Code Update In 1998,the City updated the Zoning Code for the entirety of Pismo Beach. However, the Coastal Commission did not certify the 1998 Zoning Code due to policy differences on bluff lots and development. Thus, Pismo Beach currently operates under two Zoning Codes (1983 and 1998). The City's 1983 Zoning Code applies to the two-thirds of the community within the Coastal Zone. The City initiated a project to amend the Local Coastal Program, including the coastal zoning regulations this spring. The City Council is in favor of this amendment, and it is a major City goal to complete the amendment over the next few years.Developing a consolidated code will assist developers and property owners in identifying development requirements, as well as providing a more streamlined approach to the approval process. Some specific potential constraints the City will analyze as part of the update include: - Multifamily in R-4 requiring a CUP within the coastal zone - Revising the open space requirement (currently it is 400 square feet per unit plus an additional 75 square feet per bedroom) - Evaluating criterion four in the planning commission site plan and architectural review approval findings and how it is different from criterion one Funding Source: General Fund Responsibility: Community Development Department Time Frame: Complete zoning code update by December 31, 2021 Corresponding Goal/Policy: Goal 3; Policies 2, 7 HE-17. Housing Rehabilitation The City will encourage local private and nonprofit organizations to assist elderly, disabled, and disadvantaged persons in the repair and rehabilitation of their housing, including mobile homes. The City uses CDBG funds for these services, which are provided by CAPSLO. The minor home repair program is available at no cost to seniors age 60 and over.They may include improvements such as grab bars,handrails, smoke alarms and carbon monoxide detectors, minor plumbing, carpentry, electrical and drywall work. Funding Source: CDBG; Private or nonprofit funding;grants Responsibility: Community Development Department City of Pismo Beach 2020-2028 Housing Element Page 6-9 �Yoll� Goals, Policies, and Programs A�SMo B�PLz Time Frame: Implementation of program is ongoing Corresponding Goal/Policy: Goals 4, 5;Policies 3, 6, 7, 8, 13 HE-18. Accessory Dwelling Units The City shall continue to encourage the development of accessory dwelling units (ADUs) as a tool to provide affordable housing in the community. The City updated its zoning in 2018 to put an ADU ordinance in place to address local needs and comply with recent changes to state law. The City will make additional updates to address the updates to state law passed in 2019 and any other updates to state law as needed during the planning period.The City will continue to make information about ADUs available on the City website and in the City newsletter, the Clam Chronicle. Funding Source: General Fund Responsibility: Community Development Department Time Frame: Update zoning by December 31, 2021, and if needed later in the planning period if additional updates are made to state law; Making information available is ongoing Corresponding Goal/Policy: Goal 2; Policies 1, 2, 11 HE-19. Housing Preservation The City will work to reduce the potential conversion of the 12 assisted affordable housing units at risk during the current planning period to market rate through the following actions: - Monitor the status of affordable projects, rental projects, and mobile homes in Pismo Beach. Should the property owners indicate the desire to convert properties,consider providing technical and financial assistance,when possible,to ensure long-term affordability. - If conversion of units is likely,work with local service providers as appropriate to seek funding to subsidize the at-risk units in a way that mirrors the HUD Housing Choice Voucher (Section 8) program. Funding sources may include state or local funding sources. Per state law, owners of deed-restricted affordable projects are required to provide notice of restrictions that are expiring after January 1,2021,to all prospective tenants, existing tenants, and the City within three years of the scheduled expiration of rental restrictions. Owners shall also refer tenants of at-risk units to educational resources regarding tenant rights and conversion procedures and information regarding Section 8 rent subsidies and any other affordable housing opportunities in the City. If a development is offered for sale, HCD must certify persons or entities that are eligible to purchase the development and to receive notice of the pending sale. Placement on the eligibility list will be based on experience with affordable housing. City of Pismo Beach Page 6-10 2020-2028 Housing Element �Yoll� Goals, Policies, and Programs A�SMo B�PLz Funding Source: General Fund Responsibility: Community Development Department Time Frame: Revision of Zoning Codes by December 2021 to require notification by owners consistent with state law; ongoing communication with owners, service providers, and eligible potential purchasers Corresponding Goal/Policy: Goal 4; Policies 1, 5, 6, 7 HE-20. Fair Housing— Zoning Code Amendments In compliance with state law, the City will amend the 1983 Zoning Code for the Coastal Zone to allow small residential care facilities serving six or fewer clients in all residential zones without a Conditional Use Permit. Funding: General Fund Responsibility: Community Development Department Time frame: Amend Zoning Code by December 31, 2021 Corresponding Goal/Policy: Goal 5; Policies 1, 13 HE-21. Fair Housing — Access to Mediation and Fair Housing Services The City will coordinate with San Luis Obispo County to provide access to landlord and tenant mediation and fair housing services. The City will also develop a fair housing brochure or acquire one from a fair housing provider and distribute it at City Hall, the library, and the post office. Funding: General Fund Responsibility: Community Development Department Time Frame: Provide or develop brochure within one year of Housing Element adoption Corresponding Goal/Policy: Goal 5; Policies 7, 14 HE-22. Transitional Housing The City shall amend the Zoning Codes to comply with Senate Bill (SB) 2 and define transitional and supportive housing as permitted residential uses only subject to the same restrictions that apply to other residential uses of the same type in the same zone. In addition,the City shall review its zoning codes to ensure compliance with Assembly Bill (AB) 2162 related to allowing supportive housing. The zoning codes will be reviewed to assess whether supportive housing is allowed without discretionary review (besides coastal permits) in all zones that allow multifamily housing or mixed-use development,including nonresidential zones as applicable. If it is determined that the allowed uses in the zoning codes are not in compliance with AB 2162, the City will City of Pismo Beach 2020-2028 Housing Element Page 6-11 �Yoll� Goals, Policies, and Programs A�SMo B�PLz revise the allowed uses along with corresponding development standards, as detailed in AB 2162. Funding: General Fund Responsibility: Community Development Department Time Frame: Amend Zoning Codes by December 31, 2021 Corresponding Goal/Policy: Goals 1, 3, 5; Policy 13 HE-23. Employee Housing Act To comply with the state Employee Housing Act (Health and Safety Code Sections 17021.5 and 17021.6), the City will review the Zoning Codes and amend them as necessary. Health and Safety Code Section 17021.5 requires the Zoning Codes to treat employee/farmworker housing that serves six or fewer persons as a single-family structure and permitted in the same manner as other single-family structures of the same type in the same zone in all zones allowing single-family residential uses. Section 17021.6 requires that employee/farmworker housing consisting of no more than 12 units or 36 beds be treated as an agricultural use and permitted in the same manner as other agricultural uses in the same zone. Funding: General Fund Responsibility: Community Development Department Time Frame: Review Zoning Codes by June 2021; make amendments if needed by December 31, 2021 Corresponding Goal/Policy: Goal 5; Policies 1, 9, 13 HE-24. Extremely Low-Income Households The City will meet with nonprofit developers and other stakeholders biannually to establish and implement a strategy to assist in the development of housing affordable to extremely low-income households. As part of this effort, the City will also consider prioritizing local financial resources and at least biannually seek and apply for state and federal funding specifically targeted for the development of housing affordable to extremely low-income households. The City will provide concessions and incentives to assist in the development of housing for extremely low-income households, such as increased densities, modifications to development standards, and priority processing. Also, per AB 2634, to further meet the needs of extremely low-income households, the City will also amend the Zoning Codes to define and allow single- room occupancy units with a Conditional Use Permit in the R-4, R-R, and High- Density Residential zone. Funding: General Fund Responsibility: Community Development Department City of Pismo Beach Page 6-12 2020-2028 Housing Element �Yoll� Goals, Policies, and Programs A�SMo B�PLz Time Frame: Update Zoning Codes by December 31, 2021; ongoing and at least biannual contact with stakeholders,depending on funding programs Corresponding Goal/Policy: Goals 2, 3;Policies 5, 6, 7, 8, 10 HE-25. State Energy Efficiency Standards The City will continue to implement state requirements for energy conservation in new residential projects and encourage retrofits of existing units. Provide materials/access to utility-sponsored programs that educate residents on ways to reduce energy usage or costs. Funding: General Fund Responsibility: Community Development Department Time Frame: Ongoing Corresponding Goal/Policy: Goal 6; Policy 15 HE-26. Public Outreach and Education The City shall establish outreach and education programs to increase public awareness of housing policies and issues as they arise. Such efforts may include mailed notices to the public, posts on the City's website, and printed educational materials, as appropriate. In addition, the City shall submit to HCD an annual report for progress in implementing the City's Housing Element, as required by state law. Funding Source: General Fund Responsibility: Community Development Department Time Frame: Submit annual reports annually by April 1; conduct outreach and education as needed Corresponding Goal/Policy: Goal 5; Policy 7 HE-27. Low Barrier Navigation Centers Per AB 101 (2019), the City will review its zoning ordinance and make revisions if necessary to allow low barrier navigation centers for the homeless per Government Code Sections 65660-65668. Funding Source: General Plan Responsibility: Community Development Department, City Council Time Frame: Review development code by 2021. Make revisions by 2022. Corresponding Goal/Policy: Goal 5; Policy 13 City of Pismo Beach 2020-2028 Housing Element Page 6-13 �YOII� Goals, Policies, and Programs A�SMo B�PLz HE-28. Senate Bill 35 Procedure or Policy Establish a written policy or procedure and other guidance as appropriate to specify the SB 35 (2017) streamlining approval process and standards for eligible projects, as set forth under Government Code Section 65913.4. Funding Source: General Plan Responsibility: Community Development Department Time Frame: December 2021 Corresponding Goal/Policy: Goal 3; Policy 1 HE-29. Affirmatively Further Fair Housing Pismo Beach will develop a plan to Affirmatively Further Fair Housing (AFFH). The AFFH Plan shall take actions to address significant disparities in housing needs and in access to opportunity for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act(Part 2.8,commencing with Section 12900, of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. Specific actions will include: - Provide dedicated staff that investigates fair housing complaints and enforces fair housing laws. - Facilitate public education and outreach by creating informational flyers on fair housing that will be made available at public counters,libraries,and on the City's website. City Council meetings will include a fair housing presentation at least once per year. - Actively recruit residents from neighborhoods of concentrated poverty (if applicable) to serve or participate on boards, committees, and other local government bodies. - Ensure environmental hazards are not disproportionately concentrated in low- income communities and low-income communities of color. - Develop a proactive code enforcement program that holds property owners accountable and proactively plans for resident relocation,when necessary. Funding Source: General Plan Responsibility: Community Development Department Time Frame: Create plan by January 2022 and implement on an ongoing basis. Corresponding Goal/Policy: Goal 5; Policy 14 City of Pismo Beach Page 6-14 2020-2028 Housing Element �Yoll� Goals, Policies, and Programs A�SMo B�PLz REGIONAL VISION FOR HOUSING In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact to estahlish a united regional framework to unlock our potential to develop an adequate supply of housing and infrastructure that support our economic prosperity. OVERVIEW San Luis Obispo County is a rural coastal county with seven vibrant cities and numerous unincorporated communities that depend on collaborative relationships between and among government agencies,community organizations, and residents to solve the region's significant issues including inadequate supply of affordable housing and resilient water,wastewater, and transportation infrastructure and resources. The County and all seven Cities are working collaboratively to develop the region's first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address these issues. A key component of the Regional Plan is the integration of efforts to address critical housing and related infrastructure needs. As part of the Housing Element update process,representatives of the County, seven Cities and San Luis Obispo Council of Governments (SLOCOG) developed this section to showcase the ongoing commitment of each agency to this collaborative effort. This Chapter presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure. ALIGNMENT WITH REGIONAL COMPACT This effort is guided by the San Luis Obispo Countywide Regional Compact(Regional Compact).The Regional Compact,adopted by each jurisdiction in early 2020,outlines six shared regional goals to guide collaborative resolution of underlying housing and infrastructure needs: Goal 1. Strengthen Community Quality of Life — We believe that our Region's quality of life depends on four cornerstones to foster a stable and healthy economy for all: resilient infrastructure and resources, adequate housing supply, business opportunities, and educational pathways. Goal 2. Share Regional Prosperity—We believe that our Region should share the impacts and benefits of achieving enduring quality of life among all people, sectors and interests. Goal 3. Create Balanced Communities — We believe that our Region should encourage new development that helps to improve the balance of jobs and housing throughout the Region,providing more opportunities to residents to live and work in the same community. City of Pismo Beach 2020-2028 Housing Element Page 6-15 �Yoll� Goals, Policies, and Programs A�SMo B�PLz Goal 4. Value Agriculture & Natural Resources — We believe that our Region's unique agricultural resources,open space,and natural environments play a vital role in sustaining healthy local communities and a healthy economy, and therefore should be purposefully protected. Goal 5. Support Equitable Opportunities — We believe that our Region should support policies, actions, and incentives that increase housing development of all types, available to people at all income levels. Goal 6. Foster Accelerated Housing Production — We believe that our Region must achieve efficient planning and production of housing and focus on strategies that produce the greatest impact. POLICIES It will take regional collaboration and local actions to realize the vision and goals outlined in the Regional Compact. Below is an initial list of aspirational regional policies that further the Regional Compact vision, in addition to local policies. By listing these below, it does not mandate any individual agency to implement actions, but rather offers ways that the County, cities, SLOCOG, and other partners can consider moving forward, together. In addition, and consistent with each Housing Element cycle, each of the seven cities and the County has the opportunity to choose to implement local policies and programs that help to support their achievement of its RHNA, and if an agency chooses to, can also support the Regional Compact vision and goals in a way that works for its jurisdiction and community.Local Programs and Policies are found in the section above for Pismo Beach's anticipated actions during this Housing Element cycle. R-1: Promote awareness and support of regional efforts that further housing and infrastructure resiliency by utilizing community engagement, and consistent and transparent communication. R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources to improve the balance of jobs and housing throughout the Region. R-3:Develop inter-agency partnerships as appropriate to implement goals and policies related to housing and infrastructure. R-4: Coordinate State, Federal, and other funding opportunities for housing and infrastructure development throughout the Region. R-5: Encourage developers to sell newly constructed housing units to individuals residing or employed within the area of the development (a city or the County) first before selling to individuals from outside the County, to promote local preference. R-6: Encourage rental units be prioritized for long term residents rather than short term users or vacation rentals. City of Pismo Beach Page 6-16 2020-2028 Housing Element �Yoll� Goals, Policies, and Programs A�SMo B�PLz R-7: Support housing development that is located within existing communities and strategically planned areas. R-8:Encourage regional collaboration on a menu of housing types,models,and efforts to support streamlined approvals for such developments (i.e. Accessory Dwelling Units, etc.). MOVING FORWARD The County, cities, SLOCOG, and other partners engaged in housing and infrastructure development will continue to collaborate on efforts moving forward— recognizing the benefits of working together to achieve an enduring quality of life among the region's people, sectors and interests. This ongoing collaboration will include learning from each other and sharing possible tools, policies and actions that can allow the collective region to move towards our adopted Regional Compact vision. Ongoing collaborative efforts will be described in the Regional Plan,anticipated to be complete in 2021, and related regional efforts will live outside of each individual agency's Housing Element. City of Pismo Beach 2020-2028 Housing Element Page 6-17 �YOII� Goals, Policies, and Programs A�SMo B�PLz This page intentionally left blank. City of Pismo Beach Page 6-18 2020-2028 Housing Element Appendix Appendix A Housing Conditions Survey Maps Appendix B Vacant Land Inventory Maps Appendix C Vacant Land Inventory(detailed table) Appendix D 100-and 500-Year Floodplain Map City of Pismo Beach 2020—2028 Housing Element __� Appendix " Appendix Housing Conditions Survey Map NO 2 � City of Pismo Beach %. *®�� • i � § ! < � > & � |&� - � Kr 2028 Housing Element jStV Appendix Appendix Housing Conditions Survey . , City of Pismo Beach - ' m � # � a , -- . - , �:« - _®':���{: ' _ $ \ � � � / a-1�0111 Appendix �AoB* Appendix e:Vacant Land Inventory Maps HOUSING EDAM 2020-028 PLACEWORKS c E OFPI$AWBEACH SITES INVENTORY r -- \ % / J ���� 3 EB 25 �4j�1! ( 1 �` 2 , *./ -tea 82 f z , , . 5` y ��.�/ �y 48 11 / !! 2 / 44 Z �®w e t��%• , � " © ® \ 38 } . ^ op 42 ' s 0 /x+y 39 . �2 . | « , p ! �� ��/�■/ 16 ,-\ », G 4 . m d l !22 Zoning �x w, S! ® �\ 6 .. % _ E- ` e ` E \2 °7 '44 . 4 s a \ . � l CG ` 23 ON sox 22 q PR G & ~ � ~^ ». 2® 64 .\S+, w! , » x � Ra G 2B 2 RA d\\} 69 � Ra ^ - RS , rc ayde_DRach Sites Analysis: North City of Pismo Beach 22-22 Housing Element LET�0111 Appendix A�SMO B�PLs HOUSING EL WENT 2020-202A y, CrrYOFPISWBEACH SITES INV E NTO RY s5 f f 8 f 87 8gr�103 $' • t 90 89 91 ` f i 1 094 ,d� t 81 93 1 103 134 <) 96 -- 55 •54 53 104J� f I 90 I 92I rA 91 F 79 i v{ 1 q00 75 ,76 94 60 84 93 Q56 i'�' w� b3F� 9S 117.k~ 49 8 57 58 ;; 4t� S4,`� 9 104 97 lair o- �.. ~ 110 79 100 _ f 107 118k :`rs:ro _: 106 105 118 `.. , +_- t 10 59 76 Zoning . � 118 101 75 78 _ __ 7 �11y9 = _ _ '=__-_ _ it 60 84W83 56 i ® C-2 115 lip j 68 41�C. S - PR 109 R-3 0 ❑ 4 I 0 R-R 112 116 �°' F �" 0 RSL — 115 114 _�i •.��.� 0 ors os 113� source:City of Pi�rno beach SINS Analysis: South City of Pismo Beach 2020—2028 Housing Element LET�0111 Appendix A�SMO B�PLz Appendix C:Vacant Land Inventory I I J AddressHousing Possible Realistic nventory Units Units Number CG 1 005-398-042 0 Oak Park Medium Density Residential CG Toucan Terrace 2.47 2.5 2.0 Vacant Yes Yes Yes Yes 2 005-398-043 0 Oak Park Medium Density Residential CG Toucan Terrace 1.06 1.1 1.0 Vacant Yes Yes Yes Yes 3.53 3.5 3.0 PR 3 010-045-063 2121 Costa Brava Medium Density Residential PR Freeway Foothills 0.17 1.0 1.0 Vacant Yes Yes Yes Yes 4 010-082-001 1996 Mattie Mattie Road Specfic Plan- PR Freeway Foothills 7.47 14.0 14.0 Vacant Yes Yes Yes Yes LU-Q-6 5 010-141-034 168 Searidge Medium Density Residential PR South Palisades 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 6 010-141-037 148 Searidge Medium Density Residential PR South Palisades 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 7 010-141-038 130 Searidge Medium Density Residential PR South Palisades 0.13 1.0 1.0 Vacant Yes Yes Yes Yes 8 010-141-039 120 Searidge Medium Density Residential PR South Palisades 0.12 1.0 1.0 Vacant Yes Yes Yes Yes 9 010-152-007 2900 Shell Beach Medium Density Residential PR South Palisades 3.67 52.0 32.0 Vacant Yes Yes Yes Yes 10 010-152-036 0 Frontage Open Space PR South Palisades 0.57 0.0 0.0 Vacant Yes Yes Yes Yes 11 010-152-009 2799 Shell Beach Medium Density Residential PR South Palisades 1.46 22.0 22.0 Vacant Yes Yes Yes Yes 12 010-155-023 380 Encanto Low Density Residential PR Sunset Palisades 0.13 1.0 1.0 Vacant Yes Yes Yes Yes 13 010-562-012 98 Bluff Low Density Residential PR Sunset Palisades 1.18 1.0 1.0 Vacant Yes Yes Yes Yes 14 010-562-014 82 Low Density Residential PR Sunset Palisades 1.24 1.0 1.0 Vacant Yes Yes Yes Yes 15 010-531-052 2251 Shell Beach High Density Residential PR Spindrift 1.17 12.0 12.0 Vacant Yes Yes Yes Yes 16 010-143-041 303 Radda Medium Density Residential PR South Palisades 0.19 0.0 1.0 Vacant Yes Yes Yes Yes 17 010-143-049 205 Radda Medium Density Residential PR South Palisades 0.12 0.0 1.0 Vacant Yes Yes Yes Yes 18 010-143-042 305 Radda Medium Density Residential PR South Palisades 0.18 0.0 1.0 Vacant Yes Yes Yes Yes 19 010-144-025 3000 Shell Beach Medium Density Residential PR South Palisades 2.99 44.0 32.0 Vacant Yes Yes Yes Yes 20 010-144-023 0 Shell Beach Open Space PR South Palisades 1.27 44.0 32.0 Vacant Yes Yes Yes Yes 21 010-562-022 22 Bluff Low Density Residential PR Sunset Palisades 0.93 1.0 1.0 Vacant Yes Yes Yes Yes 22 010-073-037 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.17 1.0 1.0 Vacant Yes Yes Yes Yes 23 010-073-032 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.17 1.0 1.0 Vacant Yes Yes Yes Yes 24 010-073-010 1270 Costa Brava Medium Density Residential PR Freeway Foothills 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 25 010-073-031 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.17 1.0 1.0 Vacant Yes Yes Yes Yes 26 010-043-011 0 Mattie Low Density Residential PR Freeway Foothills 0.11 1.0 1.0 Vacant Yes Yes Yes Yes 27 010-043-012 0 Mattie Low Density Residential PR Freeway Foothills 0.13 1.0 1.0 Vacant Yes Yes Yes Yes 28 010-073-012 0 Mattie Medium Density Residential PR Freeway Foothills 0.15 1.0 1.0 Vacant Yes Yes Yes Yes 29 010-047-004 0 Mattie Low Density Residential PR Freeway Foothills 0.12 1.0 1.0 Vacant Yes Yes Yes Yes 30 010-043-016 0 Mattie Low Density Residential PR Freeway Foothills 0.16 1.0 1.0 Vacant Yes Yes Yes Yes City of Pismo Beach 2020-2028 Housing Element o s Appendix �SMo a�P` 2020-2028] Housing APN Address Inventory Number Units Units Number 31 010-562-018 50 Bluffs Low Density Residential PR Sunset Palisades 1.20 1.0 1.0 Vacant Yes Yes Yes Yes 32 010-073-027 1279 Costa Brava Medium Density Residential PR Freeway Foothills 0.20 1.0 1.0 Vacant Yes Yes Yes Yes 33 010-073-014 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 34 010-073-039 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 35 010-073-035 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 36 010-073-013 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 37 010-043-004 0 Mattie Low Density Residential PR Freeway Foothills 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 38 010-141-044 0 Shell Beach Open Space PR South Palisades 0.37 1.0 1.0 Vacant Yes Yes Yes Yes 39 010-043-003 0 Mattie Low Density Residential PR Freeway Foothills 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 40 010-073-009 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.15 1.0 1.0 Vacant Yes Yes Yes Yes 41 010-073-040 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.20 1.0 1.0 Vacant Yes Yes Yes Yes 42 010-073-038 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 43 010-073-015 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.13 1.0 1.0 Vacant Yes Yes Yes Yes 44 010-073-034 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 45 010-073-036 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.17 1.0 1.0 Vacant Yes Yes Yes Yes 46 010-073-041 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 47 010-047-010 0 Mattie Low Density Residential PR Freeway Foothills 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 48 010-043-013 0 Mattie Low Density Residential PR Freeway Foothills 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 49 010-073-008 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.15 1.0 1.0 Vacant Yes Yes Yes Yes 50 010-073-030 0 Costa Brava Medium Density Residential PR Freeway Foothills 0.17 1.0 1.0 Vacant Yes Yes Yes Yes 51 010-043-014 0 Mattie Low Density Residential PR Freeway Foothills 0.30 1.0 1.0 Vacant Yes Yes Yes Yes 52 010-043-017 0 Mattie Low Density Residential PR Freeway Foothills 0.29 1.0 1.0 Vacant Yes Yes Yes Yes 29.60 228.0 187.0 R-1 53 005-011-031 990 Fresno Low Density Residential R-1 Pismo Heights 0.11 1.0 1.0 Vacant Yes Yes Yes Yes 54 005-011-032 990 Fresno Low Density Residential R-1 Pismo Heights 0.26 1.0 1.0 Vacant Yes Yes Yes Yes 55 005-013-026 991 Stratford Low Density Residential R-1 Pismo Heights 0.32 1.0 1.0 Vacant Yes Yes Yes Yes 56 005-022-035 620 Hanford Low Density Residential R-1 Pismo Heights 0.18 1.0 1.0 Vacant Yes Yes Yes Yes 57 005-023-019 233 Porterville Low Density Residential R-1 Pismo Heights 0.13 1.0 1.0 Vacant Yes Yes Yes Yes 58 005-026-003 222 Porterville Low Density Residential R-1 Pismo Heights 0.11 1.0 1.0 Vacant Yes Yes Yes Yes 59 005-031-030 921 Hanford Low Density Residential R-1 Pismo Heights 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 60 005-032-007 0 Bay Low Density Residential R-1 Pismo Heights 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 61 005-032-021 681 Bay Low Density Residential R-1 Pismo Heights 0.10 1.0 1.0 Vacant Yes Yes Yes Yes 62 005-032-077 0 Baxter Low Density Residential R-1 Pismo Heights 0.22 1.0 1.0 Vacant Yes Yes Yes Yes 63 005-235-024 990 Bakersfield Low Density Residential R-1 Pismo Heights 0.36 1.0 1.0 Vacant Yes Yes Yes Yes 64 010-311-036 240 Boeker Medium Density Residential R-1 Shell Beach 0.06 1.0 1.0 Vacant Yes Yes Yes Yes City of Pismo Beach 2020-2028 Housing Element L\S Y OA Appendix A�SMo B�P`s 2020-2028 Housing APN Address Inventory Number Units Units Number 65 010-521-012 335 Terrace Low Density Residential R-1 Terrace Ave 0.28 1.0 1.0 Vacant Yes Yes Yes Yes 66 010-521-049 135 Terrace Low Density Residential R-1 Terrace Ave 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 67 010-521-051 215 Terrace Low Density Residential R-1 Terrace Ave 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 68 005-036-025 600 Wadsworth Low Density Residential R-1 Pismo Heights 0.11 1.0 1.0 Vacant Yes Yes Yes Yes 69 010-353-021 0 Seaview Medium Density Residential R-1 Shell Beach 0.10 1.0 1.0 Vacant Yes Yes Yes Yes 70 010-232-044 135 Vista Del Mar Medium Density Residential R-1 Shell Beach 0.11 1.0 1.0 Vacant Yes Yes Yes Yes 71 010-551-017 0 Hermosa Low Density Residential R-1 Sunset Palisades 0.20 1.0 1.0 Vacant Yes Yes Yes Yes 72 010-283-008 207 Santa Fe Medium Density Residential R-1 Shell Beach 0.05 1.0 1.0 Vacant Yes Yes Yes Yes 73 010-291-082 0 Placentia Medium Density Residential R-1 Shell Beach 0.06 1.0 1.0 Vacant Yes Yes Yes Yes 74 005-014-007 0 Wadsworth Low Density Residential R-1 Pismo Heights 0.13 1.0 1.0 Vacant Yes Yes Yes Yes 75 005-031-045 911 Hanford Low Density Residential R-1 Pismo Heights 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 76 005-017-028 790 Lemoore Low Density Residential R-1 Pismo Heights 0.15 1.0 1.0 Vacant Yes Yes Yes Yes 77 005-031-047 0 Hanford 100 R-1 0.13 1.0 1.0 Vacant 78 005-031-046 0 Hanford 100 R-1 0.10 1.0 1.0 Vacant 79 005-015-018 0 Bakersfield 100 R-1 0.22 1.0 1.0 Vacant 80 010-261-036 0 Esparto 100 R-1 0.11 1.0 1.0 Vacant 81 005-233-001 0 Visalia 100 R-1 0.41 1.0 1.0 Vacant 82 010-175-010 0 Indio 100 R-1 0.27 1.0 1.0 Vacant 83 005-031-015 0 Hanford 100 R-1 0.16 1.0 1.0 Vacant 84 005-031-025 0 Hanford 100 R-1 0.16 1.0 1.0 Vacant 5.41 32.0 32.0 RSL 85 005-211-002 1261 Longview Low Density Residential RSL Pismo Heights 0.21 1.0 1.0 Vacant Yes Yes Yes Yes 86 005-211-023 1111 Longview Low Density Residential RSL Pismo Heights 0.14 1.0 1.0 Vacant Yes Yes Yes Yes 87 005-213-025 1250 Longview Low Density Residential RSL Pismo Heights 0.29 1.0 1.0 Vacant Yes Yes Yes Yes 88 005-221-017 971 Longview Low Density Residential RSL Pismo Heights 0.15 1.0 1.0 Vacant Yes Yes Yes Yes 89 005-221-036 950 Tulare Low Density Residential RSL Pismo Heights 0.16 1.0 1.0 Vacant Yes Yes Yes Yes 90 005-221-044 980 Tulare Low Density Residential RSL Pismo Heights 0.59 1.0 1.0 Vacant Yes Yes Yes Yes 91 005-222-015 951 Longview Low Density Residential RSL Pismo Heights 0.18 1.0 1.0 Vacant Yes Yes Yes Yes 92 005-223-007 841 Merced Low Density Residential RSL Pismo Heights 0.10 1.0 1.0 Vacant Yes Yes Yes Yes 93 005-223-009 821 Merced Low Density Residential RSL Pismo Heights 0.12 1.0 1.0 Vacant Yes Yes Yes Yes 94 005-223-013 781 Merced Low Density Residential RSL Pismo Heights 0.12 1.0 1.0 Vacant Yes Yes Yes Yes 95 005-224-007 831 Delano Low Density Residential RSL Pismo Heights 0.12 1.0 1.0 Vacant Yes Yes Yes Yes 96 005-233-019 980 Taft Low Density Residential RSL Pismo Heights 0.47 1.0 1.0 Vacant Yes Yes Yes Yes 97 005-234-015 780 Tulare Low Density Residential RSL Pismo Heights 0.19 1.0 1.0 Vacant Yes Yes Yes Yes 98 005-286-001 49 La Garza Low Density Residential RSL Pismo Oaks 0.48 1.0 1.0 Vacant Yes Yes Yes Yes 99 005-288-043 106 La Floricita Low Density Residential RSL Pismo Oaks 0.70 1.0 1.0 Vacant Yes Yes Yes Yes City of Pismo Beach 2020-2028 Housing Element o s Appendix �SMo a�P` 2020-2028] AddressHousing APN Inventory Number Units Units Number 100 005-381-039 260 Reef Low Density Residential RSL Pacific Estates 0.20 1.0 1.0 Vacant Yes Yes Yes Yes 101 005-401-007 231 Ridge Low Density Residential RSL Toucan Terrace 0.15 1.0 1.0 Vacant Yes Yes Yes Yes 102 005-401-034 832 Dugan Low Density Residential RSL Toucan Terrace 0.20 1.0 1.0 Vacant Yes Yes Yes Yes 103 005-221-029 0 Longview Low Density Residential RSL Pismo Heights 0.13 1.0 1.0 Vacant Yes Yes Yes Yes 104 005-234-010 0 Visalia Low Density Residential RSL Pismo Heights 0.12 1.0 1.0 Vacant Yes Yes Yes Yes 4.81 20.0 20.0 Low DENSITY SUBTOTALS 43.35 283.53 242.00 SuitableVacant Parcels . Moderate C-1 105 005-134-023 501 Dolliver Central Commercial District C-1 Downtown Core 0.15 1.0 1.0 Vacant Yes Yes Yes Yes 106 005-152-022 184 Hinds Central Commercial District C-1 Downtown Core 0.03 1.0 1.0 Vacant Yes Yes Yes Yes 107 005-152-028 555 Cypress Central Commercial District C-1 Downtown Core 0.28 1.0 1.0 Vacant Yes Yes Yes Yes 108 010-335-008 301 Shell Beach Commercial C-1 Shell Beach 0.15 1.0 1.0 Vacant Yes Yes Yes Yes 0.61 4.0 4.0 R-3 109 005-035-006 581 Wadsworth Medium Density Residential R-3 Pismo Heights 0.27 8.1 6.0 Vacant Yes Yes Yes Yes 110 005-086-049 483 Ocean View High Density Residential R-3 Pismo Heights 0.15 5.0 5.0 Vacant Yes Yes Yes Yes 0.42 13.1 11.0 R-4 111 005-053-001 1851 Price Resort Commercial R-4 Motel District 0.37 11.0 11.0 Vacant Yes Yes Yes Yes 112 005-163-021 0 Addie Mixed Use District R-4 Downtown Core 0.17 5.0 4.0 Vacant Yes Yes Yes Yes 113 005-163-031 0 Addie 100 R-4 0.08 2.4 1.0 Vacant Yes Yes Yes Yes 114 005-163-019 0 Addie 100 R-4 0.05 1.6 1.0 Vacant Yes Yes Yes Yes 115 005-163-030 0 Addie 100 R-4 0.07 2.0 1.0 Vacant Yes Yes Yes Yes 116 005-163-023 0 Addie 33 R-4 0.41 12.3 9.0 Vacant Yes Yes Yes Yes 1.14 34.3 27.0 R-R 117 005-064-003 Dolliver Mixed Use District R-R Downtown Core 0.23 5.0 4.0 Vacant Yes Yes Yes Yes MODERATE SUBTOTALS 2.40 56.45 46.00 High Density Vacant Parcels rm" R-R 118 005-101-029 NA Park Mixed Use District R-R Downtown Core 0.01 combined site- same owner Vacant Yes Yes Yes Yes 005-101-031 NA Park Mixed Use District R-R Downtown Core 0.53 combined site- same owner Vacant Yes Yes Yes Yes 005-101-037 NA Park Mixed Use District R-R Downtown Core 0.35 combined site- same owner Vacant Yes Yes Yes Yes 0.89 19.4 15.0 City of Pismo Beach 2020-2028 Housing Element L\S y OA Appendix A�SMo B�P`s 2020-2028 Housing APN Address NumberInventory Number Acres Units Units Vacant Water Sewer Internet Electricity C-2 Five Cities GIS noted that this parcel is 119 005-242-073 NA Drive Commercial C-2 Pismo Marsh 1.96 53.8 43.0 part of a larger parcel in the Vacant Yes Yes Yes Yes GIS data we have Five Cities GIS noted that this parcel is 120 005-242-074 NA Drive Commercial C-2 Pismo Marsh 0.82 22.5 18.0 part of a larger parcel in the Vacant Yes Yes Yes Yes GIS data we have 2.78 1 76.3 1 61.0 R-3 with RVHD Overlay Unused medical 7 building. capacity based on site-specific Owner 121 005-242-019 4th St R-3 1.20 60.0 60.0 analysis by owner for a intends to Yes Yes Yes Yes potential affordable housing develop site project. as high density affordable housing. capacity based on site-specific analysis by potential C-1 1.20 60.0 60.0 application for a mixed use Vacant project that includes 25 affordable senior units 122 010-042-042 2265 Shell Beach Commercial C-1 0.57 25.0 25.0 Yes Yes Yes Yes Road HIGH DENSITY SUBTOTALS 5.44 180.7 161.0 • I II City of Pismo Beach 2020—2028 Housing Element LDS Y OA Appendix A'sM0 B�PLZ Appendix D: 100- and 500-Year Floodplain Map i - E U c 0 � '� N o /r, U jr✓ • • �i • • • • • • r � • 1 • • • • 9. City of Pismo Beach 2020—2028 Housing Element N. ® PLACEWORKS P.O. Box 1316 San Luis Obispo, California 93406 t 805.457.5557 www.placeworks.com