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5/3/2024 Comprehensive Housing Plan May 7, 2024 Meeting Intent o Strategic Framework Direction o How is Housing Defined? o Why is Housing Affordability a Growing Issue? • Data / Market Conditions o What is the City Already Doing? o Comprehensive Housing Plan 2 1 2 5/3/2024 Council Direction Strategic Framework • Continue executing the City’s affordable housing strategy, including commencing construction of Chandler’s first Rental Assistance Demonstration (RAD) project and planning for subsequent repositioning of public housing assets. • Identify innovative programs that preserve neighborhood quality and streamline processes to approve housing options that meet residents’ diverse needs. 3 What Do The Guiding Documents Say? General Plan and Other Guiding Documents • Provide for a variety of housing choices for all income levels • Continue to encourage private investment in affordable housing • Increase capacity for and coordination of affordable housing programs and projects • Concentrate of improving housing affordability citywide • Encourage compatible infill projects • Housing Element included the General Plan • Downtown Area update 4 3 4 5/3/2024 How is Housing Defined? $99,000* Maricopa County Area Median Income (AMI) 2024 (4 ppl HH) <30% AMI $31,200 – Below 31% - 50% AMI $31,201 - $51,400 51% - 80% AMI $51,401 - $82,250 81% - 120% AMI $82,251 - $123,350 Over 120% AMI $123,351 - Higher Percent HH by Income 7.1% 6.6% 13.7% 9.9% 62.5% HH Paying No More Than 30% of Gross Income $780 Max Monthly Payment $780 – $1,285 Max Monthly Payment $1,286 – $2,056 Max Monthly Payment $2,056 - $3,083 Max Monthly Payment $3,083 + Monthly Payment General Description Extremely Low Income | Homeless | People with Service Needs | People Exiting Out of Incarceration Very Low Income| People with Episodic Housing Crisis and Service Needs Low Income | Working Poor | Fixed Income Moderate Income | Workforce Housing Average Median Income | Market Rate Housing Housing Type Emergency Shelter | Transitional | SROs | Supportive Housing Subsidized | Affordable | Public Housing | Project Based | LIHTC |Housing Choice Voucher Subsidized | Affordable | Public Housing | Project Based, Housing Choice Voucher | LIHTC First Time Home Buyer | Rent/Income Restricted | Partnership Initiatives Non-Subsidized Housing | Private Market | High Market Rental | Homeownership Housing Continuum Housing affordability is generally defined as occupants paying no more than 30% of gross income for housing costs, including utilities. 6 *2022 AMI was $79,000 (4 ppl HH) 5 6 5/3/2024 Why is Housing Affordability a Growing Issue? Factors • High employment and population growth • Low housing inventory for some income households • Unstable supply chains, labor/material costs • Interest rates – lending challenges • High inflation Impact • Increased housing costs and incomes not keeping pace • Diminishing housing affordability • Increased housing cost burden • Inventory is low due to interest rate increase –lower buyer pool 8 Factors and Impacts 7 8 5/3/2024 Constraints and Limitations • Chandler nearing buildout, limited land available for housing options and most is intended for employment • State law prohibits municipalities from implementing certain controls on rent increases • State law prohibits municipalities from requiring affordable housing as a condition of zoning • Housing projects often take several years before units become available 9 10 Population Growth & Employment Population growth 2007-2020 with largest increase age group: 55+ Job growth projection: Increase of 67,300 new jobs over 2020-2055 period Sources: MAG Socioeconomic Projections; Gruen Gruen + Associates 9 10 5/3/2024 11 Chandler Household By Income About 28% of all Chandler households are Extremely Low, Very Low, or Low Income households, earning less than 80% AMI Sources: MAG Socioeconomic Projections; Gruen Gruen + Associates 2023 12 Limited Housing Supply Multi-Family Apartment Inventory in Chandler Homes for Sale* Homes currently on the market per MLS: Approximately 17,360 (vs 5,000 April 2022) Homes typically on the market per MLS historically: 22-24,000 Currently 72% of normal Source: City of Chandler- 2021 *Maricopa and Pinal County 2023 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 2018 2019 2020 2021 2022 (YTD) Existing Units Delivered Units 11 12 5/3/2024 13 Housing Cost Increases (Owners) Average effective monthly rent in Chandler $1,744 per unit 14 Housing Cost Increases (Renters) Average cost for a three-bedroom home is $519,529 13 14 5/3/2024 Diminishing Housing Affordability 15 Diminishing Housing Affordability 16 15 16 5/3/2024 17 Need for Lower Priced Housing Units Council Direction: Continue executing the City’s affordable housing strategy, including commencing construction of Chandler’s first Rental Assistance Demonstration (RAD) project and planning for subsequent repositioning of public housing assets. 17 18 5/3/2024 • Create More Homes for More People • Keep Housing Affordable and in Good Repair • Help People Stay in Their Homes and Communities • Utilize Land for Housing • Increase inventory of all types and for all incomes 19 Actions and Strategies Current Actions / Strategies • Units Added from January 2018 – April 2024 o 3,183 Single Family Units o 5,154 Multi-Family Units • Additional Affordable Units o Newtown Community Land 71 Homes o ARM 16 Affordable Rental Units o Habitat For Humanity 15 Homes o Low Income Housing Tax Credit (LIHTC) Units 447 Units o Affordable/Workforce Housing concepts introduced during preliminary discussions with developers 20 Actions and Strategies Create More Homes for More People 19 20 5/3/2024 Current Actions / Strategies • City Public Housing Authority providing 303 units o 163 Family Units o 37 Senior Units o 103 Single-family homes • Repositioning Public Housing through Rental Assistance Demonstration (RAD) • Housing Rehabilitation Program o Average of 25 homes per year received assistance with repairs related to health and safety • Let’s Pull Together o FY 2023/2024, volunteers worked on over 250 homes 21 Actions and Strategies Keep Housing Affordable and in Good Repair Actions and Strategies Permitting Process and Timelines • The review time for both civil and building submittals is 20 working days per cycle • On average civil approval takes three cycles and building approval two • These timeframes are affected by the time that it takes the applicant to re-submit a complete/revised package • Pre-Technical Review • Electronic Plan Review 22 21 22 5/3/2024 23 Current Actions / Strategies 24 Actions and Strategies Utilize Land for Housing 1. SWC Arizona Avenue and German Road 2. SWC Arizona Avenue and Queen Creek Road (Recently re-zoned to PAD Multi-Family w/support retail) 3. NEC Alma School and Warner roads 4. NEC Loop 202 and Kyrene Road 5. E of SEC Arizona Avenue and Knox Road 6. NEC Chandler Blvd. and Cooper Road 7. SEC McQueen and Ocotillo roads (application filed to rezone to PAD Residential) 8. NEC Ray and Alma School roads 9. S of SEC Dobson and Warner roads (Recently re-zoned PAD Multi-Family) 10. NWC 56th and Galveston streets 11. SWC Chandler Blvd. and 56th streets 12. SWC Arizona Avenue and Pecos Road 13. SWC Alma School and Pecos roads 14. SEC Pecos and McQueen roads 23 24 5/3/2024 Current Actions / Strategies • Tenant Based Rental Assistance (TBRA) • 25 vouchers providing for 24 months of assistance • HOME funded • Follow HUD payment standards • Tenant pays 30% of their income • Emergency Housing Vouchers (EHV) • 28 vouchers provide assistance through 2030 • ARPA funded • Follow HUD payment standards • Tenant pays 30% of their income • Veteran Affairs Supportive Housing (VASH) • 10 Veterans with wrap around services from VA 25 Actions and Strategies Help People Stay in Their Homes and Communities Current Happenings • Continue Repositioning of Public Housing to Increase Availability of Units o Villas on McQueen Construction start Summer 2024 • RFQ and RFP to redevelop public housing site 73 S. Hamilton • Use planning tools and incentives to stimulate private sector housing affordability solutions o Low Income Housing Tax Credits o Bonds through IDA • Updates codes and area plans to reflect need for more housing options o Allow Accessory Dwelling Unites (ADU) o Setback reduction within infill areas • State and Federal efforts to address housing strategies and affordability o 10% of commercial space to residential HB2297 o Housing Assessment SB1162 • General Plan Update 26 25 26 5/3/2024 Council Direction: Identify innovative programs that preserve neighborhood quality and streamline processes to approve housing options that meet residents’ diverse needs. Recommendation: Develop a Comprehensive Housing Plan 28 2022 Need for Diverse Rental Housing Types 27 28 5/3/2024 Continued Need for Rental Diverse Housing Types 29 Supply Gap 5,333 units 2023 Elements of a Comprehensive Housing Plan • Analyze market demand/housing needs, including submarkets and specific geographic areas • Identify medium and long-term goals • Consider best practices of how cities successfully create housing options • Find highest and best use of city owned sites • Identify housing product types and locations • Recommend competitive funding/grants/leverage private sector funding • Identify ways to acquire and develop resources (staff, funding, management systems, partnerships) • Recommend certain number of affordable/workforce housing units through development agreements • Evaluate future impact of housing projects and what influences specific project characteristics • Address HB 2297 and SB1162 requirements and General Plan Housing Element requirement 30 29 30 5/3/2024 Next Steps 31 Council Subcommittee May 7, 2024 Funding Carryforward Request May 20, 2024 Create Steering Committee June 2024 Define Scope of Work July 2024 Issue Request for Proposals Aug. 2024 Select Vendor/Consultant/Kickoff Sept. – Oct. 2024 Community and stakeholder meetings Jan. - March 2025 Final Plan Submitted to City June 2025 Integration into Housing Element for the General Plan 2025 Steering Committee and Stakeholders 32 Potential Partners and Stakeholders • Social Services Agency • Affordable Housing Developers • Mission Based For Profit Housing Developers • School Districts • Chamber of Commerce • Non-Profits • Churches 31 32 5/3/2024 Discussion & Questions Comprehensive Housing Plan May 7, 2024 33 34