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Resolution No. 3762r.r 1 RESOLUTION NO. 3762 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS ADOPTING THE 1990 HOUSING ELEMENT AMENDMENT OF THE GENERAL PLAN FOR THE CITY OF CYPRESS. WHEREAS, the City Council of the City of Cypress held a public hearing at their meeting of May 29, 1990, to consider the final draft of the proposed 1990 Housing Element Amendment of the City's General Plan; and WHEREAS, a Notice of Intent to file a Negative Declaration was posted from April 30 to May 21, 1990, in accordance with the requirements of the California Environmental Quality Act; and WHEREAS, the City Council considered evidence presented at the public hearing including public testimony and a report prepared by City staff; and WHEREAS, after discussion by the City Council, a motion was made to certify the Negative Declaration and adopt the proposed Housing Element Amendment of the General Plan, subject to the revisions in Exhibit "A ", attached. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cypress does hereby adopt said Housing Element Amendment consistent with Government Code Section 65580 - 65589.5. PASSED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 29th day of May, 1990. Y R OF THE CITY OF 14-PRESS ATTEST: RK OF THE C OF CYPRESS STATE OF CALIFORNIA ) SS COUNTY OF ORANGE I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at 'a regular meeting of the said City Council held on the 29th day of May, 1990, by the following roll call vote: AYES: NOES: 4 COUNCIL MEMBERS: Arnold, Bowman, Kerry and Age 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: None CITY CLE FT CITY OF CYPRESS EXHIBIT A ADDENDUM TO CYPRESS DRAFT HOUSING ELEMENT I. HOUSING ELEMENT Add to end of fourth paragraph on page 1 -3: A public workshop was conducted with the Cypress City Council to review the draft Housing Element goals, policies and programs. Replace the 5th paragraph on page 1 -3 with the following: One public hearing was held before the Cypress City Council on this revision to the Housing Element. Notification was published in News Enterprise in advance of the hearing, and was also posted at the Cypress Community Center, the library, and at City I-Iall. Public hearings are also held annually on the City's participation in the Community Development Block Grant program of the County of Orange. Modify the second paragraph on page 2 -3 to read: Elderly: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependance needs. Approximately 11 percent of the City's households in 1980 were headed by an elderly member 65 years of age or older. Applying this proportion to the City's households in 1989 equates to an estimated 1,608 elderly households in Cypress. Within this group, an estimated 60 percent are living in family households, 20070 in unrelated households, and 20°7o are living alone. The proportion of elderly ... Page 2 -4, replace the last sentence of second paragraph with the following: This decrease in large family households is indicative of the decline in the number of children under 20 years of age in Cypress (refer to Page 2 -3 of the Technical Data Report), and an aging in place of the City's residents. In order to assess the magnitude of need for subsidized rental housing for large families in Cypres' ;, a survey of the number of bedrooms in units rented by Section 8 certificate holders was conducted. Large families are defined by HUD as families in units with three or more bedrooms. Approximately one -third of the 112 households in Cypress receiving Section 8 rent certificates occupied units with three or more bedrooms, as compared to only twenty percent County -wide. This is likely due to the greater availability of three and four bedroom units in Cypress (refer to Tables 17 -21 in the Technical Data Report), combined with the lower incidence of seniors in the City, and thus fewer one and two bedroom 1 units. The Housing Element addresses the needs of large families by encouraging the development of affordable housing targeted to large families; through provision of rehabilitation assistance which can be utilized for unit expansion; and through the provision of rental subsidies. Add after the first sentence of the third paragraph on page 2 -4: (Cypress' female- headed households earned only 56°Io of the 1979 average income of all family households in the City). Replace the last sentence of the third paragraph on page 2 -4 with the following: While there is no definitive data regarding the housing tenure of thi, group, it can be assumed that low incomes preclude the option of homeownership for most female - headed households. To address the housing affordability needs of female- headed households, the Housing Element proposes expansion of existing affordability programs, such as rent subsidies, and sets forth several new programs, such as non - profit housing development and shared equity /downpayment assistance, to increase the supply of affordable housing in Cypress. Housing opportunities for female - headed households with children are addressed through Housing Element policies which call for continued coordination with the Cypress Elementary School District in the provision of childcare facilities, and consideration of the use of incentives to encourage childcare to be provided coincident with commercial and industrial /Business Park development. Replace 5th paragraph on page 2 -7 with the following: Contact was made with the City's major lending institution, Security Pacific Bank, to evaluate whether there are any underserved income groups in the community for new construction or rehabilitation loans. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose the number, amount, and location (by census tract) of mortgage and rehabilitation loans originated or purchased. Annual HMDA Reports for Security Pacific Bank were reviewed to evaluate whether residential financing is generally available in Cypress' lower income census tracts, consisting of tracts 1101.04, 1101.09, and 1101.11. IIMDA Reports for the years 1987 -1989 indicated single and multi - family mortgage loans had been issued in each of these census tracts, with a total of 28 loans originated during the three year period. While no home improvement loans were issued by Security Pacific in these census tracts during 1987 -1989, this is likely due to the tax benefits of using a home equity loan for rehabilitation purposes rather than a home improvement loan; home equity loans are not currently tracked by the HMDA reports. Based on evidence of rehabilitation activity in these lower income census tracts, financing appears to be readily available. 2 Add a second paragraph under Building Codes and Enforcement on page 2 -9: Lot coverage requirements in single - family and RM15 zones are a maximum of 40070 of the site, with up to 45% building coverage permitted in RM20 zones. The City does not have any type of growth control measures in place to limit residential development in its jurisdiction. Add to second paragraph on page 2 -10: The Schedule of Absorption adopted as part of the Development Agreement for this project indicates the following project phasing: March 1991 - 26 units developed; March 1992 - 150 units developed; March 1993 - 150 units developed; March 1994 - 150 units developed; March 1995 - 105 units developed; March 1996 - 75 units developed; and March 1997 - 15 units developed. Within the five year period of this Housing Element (through July 1994), 476 of the total 671 dwelling units on the tank farm property will be completed. Add footnote to Table 1 on page 2 -10: (a) The upper end of the density range for each residential land use category is permitted by right under the City's General Plan and Zoning. Density bonus incentives often result in the development of residential projects with densities up to 25% greater than the upper end of the density range. Insert as third paragraph on page 2 -11: In order to estimate the net increase in residential development attributed to recycling over the five year period of the Housing Element, recycling activity during the past 4 1/2 years (1986 -April 1990) can be applied to the 1989 -1994 period of the Housing Element. Replacement can conservatively be estimated at a ratio of four -to -one, although it is likely many single units will be replaced with a greater number of units. During the 1986- April 1990 period, 240 dwelling units were developed through residential recycling in the City's underdeveloped neighborhoods, resulting in an approximate net increase of 180 dwelling units in Cypress. Extrapolating this same rate of residential recycling to the five year period of the Housing Element translates to an estimated net increase of 198 dwelling units which can reasonably be expected to develop during the 1/89 - 6/94 period. Add footnotes to Table 2 on page 2 -13: (a) Within the five year period of the Housing Element, 476 of these units will be completed. (u) Based on past development trends, within the five year period of the Housing Element, an estimated net increase of 198 units are expected to be developed on underutilized land. 3 Add to end of page 4 -6: Housing Production in Comparison with Regional Housing Needs The Regional Housing Allocation Model (RHAM) adopted by SCAG identified the following new construction need for Cypress during the 1984 -1989 period: Income Level Number of Units Very Low 153 Low 188 Moderate 261 Upper 565 TOTAL: 1,167 During the past five years of the City's adopted Housing Element (1984 - 1989), a total of 231 single family and 227 multi - family units were constructed. Of the 227 multi - family units, 75 units were constructed as affordable senior citizen rental units. The majority of the remaining multi - family units were developed as apartment complexes with rental rates generally affordable to low income households. The remaining multi - family units were developed as condominium projects which provided affordable homeownership opportunities to moderate income households. With only 231 single - family units developed during the 1984 -1989 period, the City's greatest housing production shortfall was in providing housing for upper income households. Based on the unavailability of vacant land, the 1985 Cypress Housing Element recognized the City's inability to meet its total regional housing need of 1,167 dwelling units, and identified as its five year goal the achievement of up to 55°Io of its need, or 641 dwelling units. With 458 units developed during the period, the City was only able to meet 40% of its total dwelling unit need. Several significant areas of residential development opportunity have opened up in Cypress which will allow the City to meet its future regional housing needs for the 1989 -1994 period. Clean -up of a 144 acre site previously occupied by the Texaco Tank Storage Farm will accommodate 671 new single - family dwellings, 476 which will be developed during the five year time frame of the Housing Element. In 1988, the Crescent /Lincoln neighborhood was annexed to the City, providing opportunities for multi - family development through residential infill. And finally, the Cypress Elementary School site has become available for development, and the Cypress Redevelopment Agency is currently soliciting proposals for the development of a 120 -125 unit senior housing project on the site. 4 Add to end of page 4 -14:. Sites for Homeless Shelters /Transitional Housing Facilities The City of Cypress has an estimated homeless population of between 10 to 35 persons. The majority of these individuals are single males with apparent drug or alcohol dependencies; few families are represented. Cypress has no emergency shelters within its boundaries, although motel vouchers are provided by Saint Irenaneous Catholic Church to provide shelter in emergency situations. Housing Element policy calls for the City to coordinate with local social service providers, such as local churches, to address the needs of the homeless. In addition, the City will amend its Zoning Ordinance to permit the development of transitional housing in multi - family residential zones in locations close to services, and to permit emergency shelters in commercial and industrial zones, subject to a Conditional Use Permit. These Zoning Ordinance revisions will be made no later than 1991. Add to end of second paragraph on Page 4 -9: With an estimated $550,000 available for expenditure during the five year period of the Housing Element, redevelopment set -aside funds will provide a major source of funding for housing program implementation. Add to last paragraph on Page 4 -21: In order to achieve resident awareness of the availability of these services, the City of Cypress will place informational flyers and brochures in key locations throughout the community, including the library, community center, senior center, and at the public counter at City Hall. Add to page 4 -23: 2d. Sites for Homeless Shelters /Transitional Housing Facilities Program Objective: Facilitate the development of transitional or emergency housing for the homeless through revisions to the Zoning Ordinance 5 Year Goal: Work towards development of a transitional housing facility /emergency shelter Funding Source: Department Budget Responsible Agency: Community Development Department Time Frame: Amend Zoning Ordinance within one year 5 { II. TECHNICAL DATA REPORT Modify Table 11 on page 3 -7 as follows: Elderly(65 + )(a) 1,608 households 11.0010 total households Sources: (a) Proportion of elderly households in 1980 applied to Calif. Dept. of Finance 1989 household estimate. Modify the second paragraph on page 3 -7 to read: Elderly: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependance needs. Approximately 11 percent of the City's households in 1980 were headed by an elderly member 65 years of age or older. Applying this proportion to the City's households in 1989 equates to an estimated 1,608 elderly households in Cypress. Within this group, an estimated 60 percent are living in family households, 20010 in unrelated households, and 20% are living alone. The proportion of elderly ... Page 3 -8, replace the last sentence of second paragraph with the following: This decrease in large family households is indicative of the decline in the number of children under 20 years of age in Cypress (refer to Page 2 -3 of the Technical Data Report), and an aging in place of the City's residents. In order to assess the magnitude of need for subsidized rental housing for large families in Cypress, a survey of the number of bedrooms in units rented by Section 8 certificate holders was conducted. Large families are defined by HUD as families in units with three or more bedrooms. Approximately one -third of the 112 households in Cypress receiving Section 8 rent certificates occupied units with three or more bedrooms, as compared to only twenty percent County -wide. This is likely due to the greater availability of three and four bedroom units in Cypress (refer to Tables 17 -21 in the Technical Data Report), combined with the lower incidence of seniors in the City, and thus fewer one and two bedroom units. Replace the last sentence of the third paragraph on page 3 -8 with the following: While there is no definitive data regarding the housing tenure of this group, it can be assumed that low incomes preclude the option of homeownership for most female- headed households. 6 Replace 5th paragraph on page 6 -2 with the following: Contact was made with the City's major lending institution, Security Pacific Bank, to evaluate whether there are any underserved income groups in the community for new construction or rehabilitation loans. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose the number, amount, and location (by census tract) of mortgage and rehabilitation loans originated or purchased. Annual HMDA Reports for Security Pacific Bank were reviewed to evaluate whether residential financing is generally available in Cypress' lower income census tracts, consisting of tracts 1101.04, 1101.09, and 1101.11. HMDA Reports for the years 1987 -1989 indicated single and multi- family mortgage loans had been issued in each of these census tracts, with a total of 28 loans originated during the three year period. While no home improvement loans were issued by Security Pacific in these census tracts during 1987 -1989, this is likely due to the tax benefits of using a home equity loan for rehabilitation purposes rather than a home improvement loan; home equity loans are not currently tracked by the HMDA reports. Based on evidence of rehabilitation activity in these lower income census tracts, financing appears to be readily available. Add to last paragraph on Page 6 -4: Lot coverage requirements in single - family and RM15 zones are a maximum of 40010 of the site, with up to 45010 building coverage permitted in RM20 zones. The City does not have any type of growth control measures in place to limit residential development in its jurisdiction. Add to second paragraph on page 7 -1: The Schedule of Absorption adopted as part of the Development Agreement for this project indicates the following project phasing: March 1991 - 26 units developed; March 1992 - 150 units developed; March 1993 - 150 units developed; March 1994 - 150 units developed; March 1995 - 105 units developed; March 1996 - 75 units developed; and March 1997 - 15 units developed. Within the five year period of this housing Element (through July 1994), 476 of the total 671 dwelling units on the tank farm property will be completed. Add footnote to Table 29 on Page 7 -1: (a) The upper end of the density range for each residential land use category is permitted by right under the City's General Plan and Zoning. Density bonus incentives often result in the development of residential projects with densities up to 25°7o greater than the upper end of the density range. Insert as third paragraph on page 7 -2: In order to estimate the net increase in residential development attributed to recycling over the five year period of the Housing Element, recycling activity during the past 4 1/2 years (1986 -April 1990) can be applied to the 1989 -1994 period of the Housing Element. Replacement can conservatively be estimated at a ratio of four -to -one, although it is likely many single units will be replaced with a greater number of units. During the 1986- April 1990 period, 240 dwelling units were developed through residential recycling in the City's underdeveloped neighborhoods, resulting in an approximate net increase of 180 dwelling units Cypress. Extrapolating this same rate of residential recycling to the five year period of the Housing Element translates to an estimated net increase of 198 dwelling units which can reasonably be expected to develop during the 1/89 - 6/94 period. Add footnotes to Table 30 on page 7 -4: (a) Within the five year period of the Housing Element, 476 of these units will be completed. (b) Based on past development trends, within the five year period of the Housing Element, an estimated net increase of 198 units are expected to be developed on underutilized land. 8