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07/14/2021 Housing and Neighborhood Revitalization Committee Regular Agenda Packet City of Gilroy Housing & Community Development 7351 Rosanna Street Gilroy, CA 95020 Housing & Neighborhood Revitalization Committee (HNRC) Meeting Agenda Wednesday, July 14, 2021 – 6:00 p.m. HOUSING & NEIGHBORHOOD REVITALIZATION COMMITTEE MEMBERS: Vanessa Ashford, Chair Greg Bozzo Laraine Spencer Jasmine Ledesma, Vice-Chair Makhan (Mak) Gupta Danny Van PUBLIC PARTICIPATION IN THIS MEETING WILL BE LIMITED. THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDER N-29-20 MEETING MATERIAL IS AVAILABLE ON THE CITY WEBSITE www.cityofgilroy.org. In order to minimize the spread of the COVID 19 virus, the City will be offering telephone and email options for public comments at this meeting. The public is encouraged to participate in this meeting as follows: VIEW THE MEETING LIVE ON FACEBOOK https://www.facebook.com/GilroyCityHallMeetings PUBLIC COMMENTS WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE HOUSING AND NEIGHBORHOOD REVITALIZATION COMMITTEE. COMMENTS MAY BE EMAILED PRIOR TO OR DURING THE MEETING TO HCD TECHNICIAN SANDRA NAVA AT sandra.nava@cityofgilroy.org AND MUST BE RECEIVED BEFORE THE CHAIRPERSON OPENS PUBLIC COMMENT FOR THE ITEM. ADDITIONALLY, COMMENTS MAY BE MADE BY LEAVING A VOICE MESSAGE AT (408) 846-0290, PRIOR TO 5:00 P.M. July 14, 2021. IMPORTANT: in the subject line of your email, identify the Agenda Item Number and type in “PUBLIC COMMENT”. The HCD Technician will read the first three minutes of each email into the public record. In compliance with the Americans with Disabilities Act, and Governors Order N-29-20, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City a minimum of 2 hours prior to the meeting at (408) 846-0290. I. Call to Order - Welcome a. Roll Call II. Report on Posting of the Agenda III. Public Comments on Items Not on the Agenda: PUBLIC COMMENTS MAY BE SUBMITTED BY EMAIL TO: sandra.nava@cityofgilroy.org , (Three-minute time limit). This portion of the meeting is reserved for persons desiring to address the Housing and Neighborhood Revitalization Committee on matters not on this agenda. The law does not permit the Housing and Neighborhood Revitalization Committee action or extended discussion of any item not on the agenda except under special circumstances. If Housing and Neighborhood Revitalization Committee action is requested, the Housing and Neighborhood Revitalization Committee may place the matter on a future agenda. Written material City of Gilroy Housing & Community Development 7351 Rosanna Street Gilroy, CA 95020 provided by public members for Housing and Neighborhood Revitalization Committee agenda item “public comments” will be limited to 10 pages in hard copy. IV. Approval of Meeting Minutes (report attached) a. Minutes from June 9, 2021 b. Public comment c. Possible Action: Motion to approve minutes V. Meeting Format after City Hall Reopens (Continued from June 9, 2021) (report attached) Report by Karen Garner, Community Development Director a. Public comment b. Possible Action: Receive report VI. Reassess Approved Work Plan (report attached) a. Report by Vanessa Ashford, HNRC Chair b. Public comment c. Possible Action: Maintain or motion to amend work plan VII. Staff Updates Housing Element Update (report attached) Update on HNRC member recruitment http://www.cityofgilroy.org/148/Boards-Commissions-Committees VIII. Informational Items IX. Future Agenda Items FY 2020-2021 Progress Report of Grant Funded Public Service and Rehabilitation Programs X. Adjournment- The next regular meeting is August 11, 2021 The City of Gilroy does not discriminate on the basis of race, color, religion, national origin, sex, disability, sexual orientation, gender identity, or familial status in the administration of its programs or activities. Pursuant to the Americans with Disabilities Act, and Governor’s Order N-29-20, the City of Gilroy will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the HCD Technician (408) 846-0290 a minimum of 2 hours prior to the meeting. The hearing impaired may reach the HCD Technician through the California Relay System at 711 or (800) 735-2929. KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE. Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and other agencies of the City exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people’s view. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204 or shawna.freels@cityofgilroy.org . City of Gilroy Housing Division 7351 Rosanna Street Gilroy, CA 95020 Housing & Neighborhood Revitalization Committee (HNRC) Meeting Minutes Wednesday, June 9, 2021 – 6:00 p.m. I. Call to Order - Welcome The meeting was called to order by Chair Vanessa Ashford at 6:01 p.m. Roll call: Chair Vanessa Ashford, Makhan (Mak) Gupta, Vice-Chair Jasmine Ledesma, Laraine Spencer, Danny Van Absent: Greg Bozzo City staff participating: Karen Garner, Community Development Director, Sandra Nava, HCD Technician II, Robert Carrera, Management Analyst II. Report on Posting of the Agenda Liaison Nava announced that the agenda was posted on June 2, 2021 at 5:00 p.m. III. Public Comments on Items Not on the Agenda: There were no public comments. IV. Approval of Meeting Minutes There were no public comments. Motion to approve the minutes from the May 12, 2021 Meeting was made by Member Gupta, seconded by Member Spencer and unanimously carried 5-0. There were no public comments. V. Subcommittee Report on Draft June 21, 2021 Advisory Body Presentation and Selection of Presenter Vice-Chair Ledesma presented the draft advisory body presentation to members. Members provided feedback that will be incorporated into the final presentation. Members agreed to have the Vice-Chair present to Council on June 21, 2021. Motion to approve advisory body presentation with the proposed changes was made by Member Spencer, seconded by Chair Ashford and unanimously carried 5-0. There were no public comments. VI. Meeting Format after City Hall Reopens and Reassessment of 2021 Meeting Schedule Members support continuing to meet monthly through the end of the year and agreed to defer the discussion on the meeting format until additional information is available. Motion to continue the meeting format item to the July 14, 2021 meeting was made by Chair Ashford, seconded by Member Gupta and unanimously carried 5-0. There were no public comments. VII. Staff Updates The Parks and Recreation Commission has been designated as the lead Commission/Committee to partner with the Santa Clara Valley Urban Forestry Alliance. This committee can look forward to receiving status updates on the Assessment of Fair Housing Plan, the Housing Element Update, and the upcoming citywide Inclusionary Housing Incentive Policy. City of Gilroy Housing Division 7351 Rosanna Street Gilroy, CA 95020 There were no public comments. VIII. Informational Items Council will consider opening the recruitment for the current HNRC vacancy at its June 21, 2021 meeting. There were no public comments. IX. Future Agenda Items • July 14, 2021-Reassess Approved Work Plan • July 14, 2021-Meeting Format after City Hall Opens (Continued Item from June 9, 2021) • FY 2020-2021 Progress Report of Grant Funded Public Service and Rehabilitation Programs X. Adjournment Chair Ashford adjourned the meeting at 7:22 p.m. The next Regular Meeting is July 14, 2021. City of Gilroy STAFF REPORT Agenda Item Title: Report on Reopening of City Offices on August 30, 2021 Meeting Date: July 1, 2021 From: Jimmy Forbis, City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Jimmy Forbis Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability  Public Engagement RECOMMENDATION Receive report and provide feedback. EXECUTIVE SUMMARY Considering the recent updates to the State, County and Cal OSHA directives and orders, staff is excitedly planning for the reopening of City offices scheduled for Monday, August 30, 2021. Staff will continue to monitor the available COVID-19 information to ensure the City reopening plans are safe for both employees and customers. Staff has formed an internal city-wide committee working to develop successful plans for reopening. The below high -level report is intended to update the Council and community on the reopening plans to date and to receive feedback. SUMMARY OF UPDATED COVID-19 ORDERS Recently, State, County and Cal OSHA orders have been updated which facilitate the reopening of city offices. A few key items to highlight include: California’s Department of Public Health has updated statewide masking guidance to match the CDC’s guidance, lifting California’s mask requirements for vaccinated individuals starting on June 15. Vaccinated people can come together without masks in most circumstances. People who are unvaccinated must continue to wear a mask indoors in public settings to protect themselves and others. Also, there are some settings where masking is still required for everyone, such as: • Public transit • Hospitals • Long-term care facilities • Homeless shelters • Indoors in K-12 schools, childcare, and other youth settings (i.e. Recreation programs) While fully vaccinated City employees are not required to wear a face mask while at work, some may choose to do so for safety reasons as it is possible that an unvaccinated customer may enter city hall claiming to be vaccinated. Further, unvaccinated City employees must continue to wear a mask while at work. The City will be placing signage at city facilities indicating that unvaccinated customers/employees must wear a mask when entering the building. Further, masks will be provided as needed by our customers should an unvaccinated customer arrive without a mask. Vaccination status will be on the person’s honor like the process being followed by most businesses throughout the community. A hand sanitizing station will be provided near the main entrance to the central customer service/reception desk at all city offices. The Santa Clara County Health Officer urges that all businesses and governmental entities follow the recommendations set forth below: • Businesses and governmental entities should strongly encourage all personnel to be fully vaccinated as soon as possible and should regularly request updated vaccination status information from those personnel who are not already fully vaccinated. • Businesses and governmental entities should consider moving operations and activities outdoors, where there is significantly less risk of COVID-19 transmission, especially operations and activities involving patrons who are unlikely to be vaccinated. • Businesses and governmental entities should prohibit all personnel who are not fully vaccinated from engaging in any work-related travel to places with elevated rates of COVID-l9, with widespread circulation of variants of concern, or where community vaccination rates are below the average in the Bay Area region. • Businesses and governmental entities should require all personnel not fully vaccinated to obtain regular testing for COVID-l9 consistent with current local, state, and federal recommendations. Any person vaccinated or unvaccinated, who has COVID-l9 symptoms should be tested via a PCR test immediately. CURRENT STATUS OF CITY SERVICES Fire, Police and Public Works operations services have continued consistently throughout the pandemic. Building and public works inspection services have continued with most of the work occurring outdoors. Earlier this month, the police department lobby reopened for public access. Some limited recreation programming has returned to include some summer camp programs for youth, outdoor sport activities, park/picnic area reservations, meals for seniors, and other specialty classes. In addition, the San Ysidro community center has been a hub for providing a variety of services to the community to include food delivery for those in need, COVID-19 vaccinations, COVID- 19 testing, and other supportive services. All other city departments have been providing remote services with limited in-person meetings. Currently, approximately twenty-five (25%) percent of city hall staffing is working on-site. This percentage is increasing weekly considering the updated orders. REOPENING PREPARATION/SAFETY PRECAUTIONS Currently, all departments are preparing for the reopening and provision of in-person services. While the availability of remote services to the public will continue, staff knows that customers are eager to access their local government in-person. The facilities team has been working to ensure that a ll city facilities are safe for increased employee and customer capacity. The following are some of the measures previously implemented and being planned to facilitate reopening: • Plexiglass barriers were installed at the beginning of the pandemic in antici pation of an earlier reopening which did not occur. Although the barriers are no longer required, staff recommends keeping them in place as a safety precaution • Upgraded air filters to a higher rating of Merv 13 which trap smaller particles, including virus particles • Added two hours per day of operation to the HVAC system at City Hall for more air filtration • Increased the percentage of outside air used by the HVAC systems • Purchased ion generating filtration for all the air handling units. These units break down passing pollutants into harmless compounds and will be installed in July. • Assisting with office moves and workspace reorganizations • Assisting with the implementation of a customer service/reception (“concierge”) station at city hall • Installation of directional arrows to guide customer paths of travel • Installation of indoor and outdoor signage to direct customers to the correct location Also, while social distancing is no longer required, staff intends to limit the number of customers at each counter using a queuing software managed by a customer service reception desk. While some customers may have already scheduled an appointment, other walk-in customers can be placed into a queue for the department they need to visit. Use of this program will allow for a better flow of customers and ensure a safe environment for both employees and customers as customers will not be stacking up in the lobby. The customer service reception desk will have the most common forms, applications, and information to provide to customers on the spot. RELOCATION OF SERVICES The Finance Department’s utility billing function has historically received the most in - person customers at city hall. At this time, the Recreation Division will be moving across the street to the Senior Center/Community Center complex where there is enough space for the downsized Recreation team. The Finance Department will be moving to the north wing of city hall where Recreation was previously which allows for a dedicated customer service county/lobby area and increased security which is important for the finance function. Building, Planning and Engineering customers will continue to be directed to the counters in the central area of city hall after checking in at the customer service/reception desk with an appointment time or by addition to the queueing system. Other functions will receive customers via the centralized customer service/reception desk. The facility changes will establish a single point of entry for City Hall. Previously, customers could enter at two points – near Recreation and near City Council chambers. The single access point will now be the former Recreation entrance which will now be Finance/Utility Billing. TARGET DATES July/August, 2021 Remaining employees returning to onsite work Monday, August 30, 2021 Reopening of city offices to the public Monday, September 13, 2021 City Council onsite for Council meeting with hybrid public participation October, 2021 Board, Commission & Committee meetings return to in- person meetings (see below for additional information) CITY OFFICE HOURS As the organization returns to the provision of in-person services, a phased approach will be implemented to facilitate a smooth process. Phase Estimated Time Frame Public Service Hours Days of Week Phase One August 30 – December 231 8:30 a.m. – 4:30 p.m. Monday – Thursday; Fridays by Appointment Phase Two January 2 – June 30 7:00 a.m. – 6:00 p.m. Monday – Thursday; Fridays by Appointment Phase One hours are intended to activate the most utilized hours for customers while at the same time allow staff a short pre-day and post-day time to complete work. Staff believes that many customers will continue to utilize online services and these hours will ensure that both in-person and virtual customers receive timely services. It is important to recall that staffing levels in all departments are not at pre -COVID-19 levels. Fridays plus the one hour of quiet time each day will assist staff in keeping up with the workload while at the same time being available the bulk of the day for in-person customers. Fridays will allow staff time to work on projects and other administrative work, however, customer appointments can be scheduled as needed. The additional administrative hours also allow employees to dedicate time to online services. Phase Two hours contemplate a successful Phase One and the ability to expand office hours to meet the needs of our customers. Some customers may prefer the early morning hours while others may benefit from early evening hours. As wit h Phase One, the Friday closure will allow staff to keep with the workload, work on projects and other administrative work, and schedule customer appointments as needed. Further, during Phase Two, for those employees who have more traditionally worked a Mo nday – Friday, 8 a.m. – 5 p.m. schedule, staff is recommending a pilot program that includes the option for a 9/80 work schedule for employees. A 9/80 work schedule means an employee works four 9-hour workdays plus one 8-hour workday one week and then four 9-hour workdays the following week. Essentially, the work week breaks at the halfway point of the 8-hour workday resulting in two forty-hour workweeks (no overtime). The 9/80 work schedule is commonly offered in the public sector and the Friday closure facilitates offering a pilot program with our current staffing levels. While alternative work schedules such as the 9/80 and/or 4/10 are utilized in the police department, they have not been widely utilized in other City departments as the depth of staffing on the off days was not sufficient when city offices were open to the public. 1 Staff recommends that City offices continue to be closed for the holiday period of December 24 -January 1 as has been implemented in prior years for non-safety/non-essential city services. This time allows staff to bring down leave balances and those employees working can focus on important projects and can schedule customer appointments as needed for time sensitive services. However, with Fridays to be appointment only days, offering this schedule to employees under a pilot program is a good option. Further, the expanded office hours Monday – Thursday, 7 a.m. – 6 p.m. make up for the Friday public service hours. As such, staff hopes this pilot program will be a positive experience for both customers and employees. BOARD/COMMISSION/COMMITTEE MEETINGS As noted above, staff will be transitioning to in-person Board/Commission/Committee meetings in October. This follows the Council’s September 13th return to meeting in- person and allows staff to prepare for in-person meetings. Currently, staff is working to implementing hybrid meeting options (virtual/in-person) for Council meetings to allow for public participation both in-person and virtually. While most Boards/Commissions/Committees wish to return to in-person meetings, a couple have indicated a desire to continue meeting virtually. At this time, staff is requesting feedback from the City Council regarding Boards/Commissions/Committees so there is consistent information being provided by staff. While virtual meetings have worked during the pandemic, they are not the ideal way to interact with the community. Further, a few Board/Commission/Committee members have struggled with the technology (computer, Wi-Fi, knowledge of software, etc.) needed to participate virtually. PUBLIC OUTREACH At this time, staff is developing a variety of communication to be shared with the community regarding the reopening of city offices and the provision of city services. Regular messaging in both English and Spanish will be shared via a variety of communication tools to get the word out the community regarding the city’s reopening plans. Furthermore, staff will be conducting customer surveys to ensure that the City is providing services at times and days conducive to providing the best customer service possible. NEXT STEPS Staff will continue preparation plans for the August 30th target reopening date. Over the next two months, staff will utilize this is a great opportunity for the City to adjust its operations and implement new customer service practices that take into consideration the post-Covid environment, changes in customer behaviors and best utilize the Ciuty’s smaller workforce. Staff plans to survey customers for feedback to ensure we are meeting their needs and to get feedback on our office hours. Staff plans to stay flexible and adjust as needed as we work through the reopening process. Ultimately, our goal is to ensure we are meeting the needs of our customers with our available resources. RECOMMENDATION Staff recommends that the Council receive this report and provide staff direction and feedback on the reopening plan. HOUSING & NEIGHBORHOOD REVITALIZATION COMMITTEE FY 2020-2021 WORK PLAN Amendment 1 •Review and recommend approval of the Consolidated Plan and Fair Housing Assessment Completed for 2020 •Align Committee efforts to implement the Consolidated Plan and Fair Housing Assessment, including grant making, support for affordable housing and services for the homeless •Organize a grassroot conversation or committee to help the least vulnerable people find housing in Gilroy •Engage the community on long-term CDBG capital funding opportunities •Reimagine future youth center services Memorandum DATE: July 14, 2021 TO: Housing and Neighborhood Revitalization Committee FROM: Karen Garner, Community Development Director Sandra Nava, Housing & Community Development Technician II SUBJECT: Housing Element Update These items were recently discussed by the City Council. Staff will provide a verbal update of Council feedback. Thank you. City of Gilroy Housing & Community Development 7351 Rosanna Street Gilroy, CA 95020 City of Gilroy STAFF REPORT Agenda Item Title: Report on Housing Element Workplan and Status of Regional Housing Needs Allocation (RHNA) Distribution Meeting Date: June 21, 2021 From: Jimmy Forbis, City Administrator Department: Community Development Department Submitted By: Karen Garner Prepared By: Karen Garner Cindy McCormick Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION 1. Receive report and provide staff direction regarding Council expectations for the 2023-2031 Housing Element. 2. Direct staff on whether to appeal the ABAG RHNA distribution (equity adjustment) for the City of Gilroy. EXECUTIVE SUMMARY The purpose of this staff report is to provide the Council with an update on the City’s draft Regional Housing Needs Allocation for the 2023-2031 planning cycle, recently approved by ABAG, and to discuss next steps regarding an update to the City’s Housing Element. REGIONAL HOUSING NEEDS ALLOCATION UPDATE Regional Housing Needs Allocation (RHNA) overview: Since 1969, the State of California has required that all local governments adequately plan to meet the housing needs of everyone in our communities. The Regional Housing Need Allocation (RHNA) process is used to determine how many new homes, and the affordability of those homes, each city and county must plan for in its Housing Element. Cities do not need to ensure these homes are built, but do need to minimize governmental constraints, and put the proper zoning in place, so the private sector can build the housing. In consultation with the Association of Bay Area Governments (ABAG), the State Department of Housing and Community Development (HCD) determined that the Bay Area must plan for 441,176 new housing units from 2023 to 2031. On May 20, 2021, the ABAG Executive Board approved the Final RHNA Methodology and Draft RHNA Allocations. Gilroy’s draft allocation for the 2023-2031 planning cycle is 1,773 housing units, including 669 very low-income units, 385 low-income units, 200 moderate income units, and 519 above-moderate income units. Notably, while the overall number of units has increased, as it has for all cities across the state, the City of Gilroy received a higher percentage of very low- and low-income units, under an “equity adjustment” factor. Pursuant to Government Code Section 65584.05, the City may file an appeal to modify Gilroy’s allocation. The deadline to file an appeal is 5:00 p.m. on July 9, 2021. Staff is seeking direction from the Council on whether to appeal. However, appeals are historically unsuccessful, and the City’s total RHNA is in proportion to its share of the region’s total households, a key factor in the equity adjustment methodology. Therefore, staff is recommending that the City Council not appeal Gilroy’s RHNA distribution. HOUSING ELEMENT UPDATE The Housing Element is part of Gilroy’s General Plan and identifies policies and programs to meet the housing needs of the city’s current and future residents. State law (Government Code Sections 65580-65589.8) requires that every city and county in California adopt a Housing Element, approximately every eight years. In addition, HCD reviews and certifies Housing Elements to ensure they meet all requirements of the law. Gilroy’s 2015-2023 Housing Element was certified by HCD in December 2014. The 2023 – 2031 Housing Element must be certified by HCD no later than January 2023. The update process will include multiple community outreach meetings and at least two public hearings with the Planning Commission and the City Council (Draft and Final documents). Housing Element Overview: The Housing Element will include the following: 1. Housing Needs Assessment: Analyze Gilroy’s demographic and housing trends and conditions. 2. Constraints Analysis: Analyze and address existing and potential governmental and nongovernmental constraints to the development of housing. 3. Evaluation of Past Performance: Assess Gilroy’s progress in implementing the policies and programs from the City’s 2015-2023 Housing Element. 4. Housing Sites Inventory: Identify housing sites available for development or redevelopment in Gilroy, ensuring that there is sufficient capacity to address Gilroy’s 2023-2031 Regional Housing Needs Allocation. 5. Policies and Programs: Establish policies and programs to address Gilroy’s identified housing needs. 6. Community Outreach and Engagement: Conduct a thorough program of community engagement, with a particular focus on outreach to Gilroy’s traditionally underrepresented groups, including, but not limited to groups identified in the City’s Environmental Justice chapter of the 2040 General Plan. Notable Housing Element Law Changes: Assembly Bill (AB) 686 was signed into law in September 2018 and creates new requirements in Housing Element Law. Accordingly, the 2023 – 2031 Housing Element update process is expected to be more time intensive and rigorous than previous cycles. In addition to receiving a higher Regional Housing Needs Allocation, as described earlier in this report, it will be harder to identify sites that can count towards accommodating the 2023-2031 RHNA planning cycle. New requirements mean there will be increased scrutiny on small (0.5 acre or less), large (10 acre or more) and non-vacant/redevelopment sites. General characteristics of suitable sites include adequate zoning, infrastructure availability, and likelihood of being redeveloped at the necessary density. If the City cannot identify adequate sites as defined by the State, the City will need to rezone sites accordingly. In 2018, California adopted new requirements for jurisdictions to Affirmatively Further Fair Housing (AFFH). Starting in January 2021, California law also requires that Housing Elements include an Assessment of Fair Housing (AFH). Housing Elements must factor the AFH into the housing sites inventory and include goals, policies and/or programs to combat discrimination, overcome patterns of segregation and foster inclusive communities. Changes in rules related to the sites inventory and affirmatively furthering fair housing will also require more community outreach than in the past. In collaboration with Santa Clara County and six other cities in the County, a draft AFH has been prepared and is expected to be brought to the City Council for consideration later this year. All new legal requirements will lead to a lengthier and more costly process than in the past. Fortunately, some of these additional costs will be absorbed through Gilroy’s participation in the Santa Clara County Planning Collaborative. Through the Collaborative, Baird & Driskel Community Planning consultants will assist City staff in completing portions of the sites inventory, affirmatively furthering fair housing requirement, and community outreach. Furthermore, some of the administrative burden of hiring a Housing Element consultant will be minimized through ABAG’s cooperative bench, a procurement process that has already vetted qualified consultants on behalf o f bay area cities. Another benefit of this cooperative bench is the fact that several cities across the bay area are having a difficult time finding a consultant to prepare their Housing Element, due to the anticipated amount of work associated with new state requirements. The following table illustrates a rough estimate of the Housing Element update timeline . The tentative schedule includes a study session with the City Council in September 2021 to receive direction on drafting an affordable housing ordinance and what form it might take (e.g. provide incentives for voluntary inclusion of affordable units versus require a minimum % of affordable units for projects that fall with a specific threshold ). The tentative schedule also includes public hearings with the Planning Commission and the City Council to review a draft document (Spring 2022) and then adopt the final Housing Element (Fall 2022). Tentative Housing Element Update Timeline Request proposals through the ABAG Cooperative Bench July 2021 Execute contract with consultant August 2021 City Council Study Session September 2021 Housing & Neighborhood Rev. Comm. Study Session October 2021 Develop and implement community engagement program July 2021 through 2022 Complete initial research/trends/past progress/constraints Summer/Fall 2021 Complete Sites Inventory Summer/Fall 2021 Draft Housing Element Programs and Policies Fall 2021 Prepare Draft Housing Element Winter 2022 Prepare CEQA analysis March 2022 Hold Commission / Council hearings (Review Draft) April-May 2022 Revise draft per Council direction May-June 2022 Preliminary State HCD review July-Aug. 2022 Revise plan per State HCD, if needed Sept-Oct. 2022 Hold Commission / Council hearings (Final Adoption) Oct-Nov 2022 Submit for State HCD certification November 2022 Complete rezoning, as necessary Early-Mid 2023 FISCAL IMPACT The total budget required for the 2015-2023 Housing Element is significantly higher than in previous cycles due to state legislation regarding identifying adequate sites to accommodate RHNA, and increased community outreach associated with Affirmatively Further Fair Housing requirements. The City has approximately $124,000 in LEAP and REAP grant monies1 to fund the Housing Element. The FY22-23 approved budget includes an additional $400,000 as needed depending on the level of CEQA review and rezoning associated with the findings from the sites inventory analysis. NEXT STEPS In August 2021, Staff will return to the City Council for approval of the scope of work, budget, and associated consultant contract to update the City’s Housing Element. PUBLIC OUTREACH In addition to advertising this agenda item on the City’s website, staff has created a dedicated webpage for the Housing Element Update. The webpage includes a link to sign up for email updates. 1 Grant funds for the Housing Element update include approximately $71,000 in Local Early Action Planning (LEAP) funding and approximately $53,000 in Regional Early Action Planning (REAP) funding. •Provide update on Gilroy’s RHNA and request direction on whether to appeal •Introduce next steps for the 2023-2031 Housing Element City Council June 21, 2021 Regional Housing Needs Allocation RHNA 2015-2023 Very Low (31 – 50% AMI) (22%) 236 Low (51 – 80% AMI) (15%) 160 Moderate (81 – 120% AMI) (20%) 217 Above Moderate (Above 120% AMI)(44%) 475 Total Units:1,088 2023-2031 (38%) 669 VL units (22%) 385 Low units (11%) 200 Mod units (29%) 519 MR units 1,773 total units July 9 2021 Appeal Deadline 1. ABAG failed to adequately consider the information submitted as part of the local jurisdiction survey (see Government Code Section 65584.04(b)for more details about the survey). ABAG conducted this survey in early 2020 and received responses from 72 jurisdictions. 2. ABAG did not determine the jurisdiction’s allocation in accordance with its adopted methodology and in a manner that furthers, and does not undermine, the RHNA objectives identified in Government Code Section 65584(d). 3. A significant and unforeseen change in circumstances has occurred in the local jurisdiction or jurisdictions that merits a revision of the information submitted as part of the local jurisdiction survey.Appeals on this basis shall only be made by the jurisdiction or jurisdictions where the change in circumstances has occurred. 2023 – 2031 Housing Element Housing Needs Assessment Constraints Analysis Evaluation of Past Performance Housing Sites Inventory Policies and Programs Community Outreach and Engagement Inventory of Sites Outreach (occurs throughout) Research/data gathering Sites Analysis Affirmatively Furthering Fair Housing Draft Housing Element Planning Commission and City Council Review of Draft Revise as directed State HCD review Revise if needed Council Adoption State Certification Housing Element Due Jan 2023July 2021 August 2021 City Council Study Session HNRC Study Session Assessment of Fair Housing PC/CC Draft Hearings PC/CC Adoption Hearings Oct / Nov 2022April / May 2022 October 2021 September 2021 Gather Data & Draft Element Revise HCD Review Revise 1. Receive report and provide staff direction regarding Council expectations for the 2023-2031 Housing Element. 2. Direct staff on whether to appeal the ABAG RHNA distribution (equity adjustment) for the City of Gilroy. Recommendation Questions ? FY 2021 INCOME LIMITS DOCUMENTATION SYSTEM HUD.gov HUD User Home Data Sets Fair Market Rents Section 8 Income Limits MTSP Income Limits HUD LIHTC Database FY 2021 Income Limits Summary Selecting any of the buttons labeled "Explanation" will display detailed calculation steps for each of the various parameters. FY 2021 Income Limit Area Median Family Income Explanation FY 2021 Income Limit Category Persons in Family 1 2 3 4 5 6 7 8 San Jose- Sunnyvale- Santa Clara, CA HUD Metro FMR Area $151,300 Very Low (50%) Income Limits ($) Explanation 58,000 66,300 74,600 82,850 89,500 96,150 102,750 109,400 Extremely Low Income Limits ($)* Explanation 34,800 39,800 44,750 49,700 53,700 57,700 61,650 65,650 Low (80%) Income Limits ($) Explanation 82,450 94,200 106,000 117,750 127,200 136,600 146,050 155,450 NOTE: HUD generally uses the Office of Management and Budget (OMB) area definitions in the calculation of income limit program parameters. However, to ensure that program parameters do not vary significantly due to area definition changes, HUD has used custom geographic definitions for the San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area. The San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area contains the following areas: Santa Clara County, CA; * The FY 2014 Consolidated Appropriations Act changed the definition of extremely low-income to be the greater of 30/50ths (60 percent) of the Section 8 very low-income limit or the poverty guideline as established by the Department of Health and Human Services (HHS), provided that this amount is not greater than the Section 8 50% very low-income limit. Consequently, the extremely low income limits may equal the very low (50%) income limits. Income Limit areas are based on FY 2021 Fair Market Rent (FMR) areas. For information on FMRs, please see our associated FY 2021 Fair Market Rent documentation system. For last year's Median Family Income and Income Limits, please see here: FY2020 Median Family Income and Income Limits for San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area Page 1 of 2FY 2021 Income Limits Documentation System --Summary for San Jose-Sunnyvale-Sant... 7/6/2021https://www.huduser.gov/portal/datasets/il/il2021/2021summary.odn?states=%24states%24... Select another FY 2021 HMFA Income Limit area that is a part of the San Jose-Sunnyvale-Santa Clara, CA MSA San Benito County, CA HUD Metro FMR Area  Select HMFA Income Limits Area Select any FY2021 HUD Metropolitan FMR Area's Income Limits: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area  Select HMFA Income Limits Area Or press below to start over and select a different state: Select a new state Update URL For bookmarking or E-Mailing Prepared by the Program Parameters and Research Division, HUD. 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