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HomeMy WebLinkAboutResolution 6403 N.C.S. 09/04/1973 • EER:mi 8-27.-73 • zsolution No. 6.403 G N t� L i a�i\S'S RESOLUTION' MODIFYING THE4 USING ETEMENT. OF. THE GENERAL PLAN INTRODUCED BY COUNCILMAN G ° .' and SECONDED BY COUNCILMAN at a Regular Meeting of the City Council of the City of Petaluma, on the 4th day of September t9 73 WHEREAS the City: Planning Commission has reviewed proposed modi- fications of the Housing Element of the GeneralPlan, :and 'has held a hearing thereon .and after said hearing finds the. .proposed modifications to the Housing Element of the 'General Plan should be adopted, and WHEREAS, the City: Planning Commission filed with the City Clerk on the .7th day of August, .1923 , its report. as 'set forth in, :its: Resolution No. 18-73 recommending adoption of certain Modifications to the Housing Element of the .General Plan, and WHEREAS , the City Council has reviewed the .proposed modifications of the. Housing Element of the General Plan and has held a hearing thereon the .4th day of September, l933 , and' after said hearing finds that the proposed modifications of the Housing Element of the General Plan should be adopted, NOW, THEREFORE, BE IT RESOLVED that the proposed modifications to the Housing Element of the 'General Plan are. hereby adopted in the form as prepared by. the staff, a copy of which .is attached hereto and incor- porated herein. cinder the power and authority conferred upon this Council by the Charter of said City. I hereby certify the the foregoing Resolution was duly and regulary introduced and adopted by the Council of the City of Petaluma on the 4th day of September , 1973 , by the following votes: AYES: Councilmen Brunner , Cavanagh, Jr . , Daly,, .Iarberson;�)lattei , Perry , Jr . , and Mayor Putnam. �� Jj NOES: None, ayor ABSENT None. % ATTEST: Deputy City Clerk Form CA 6-73 6 Voce . • S . • {jtih� . crD'LFS'. s.:Jk23�IE.. � MOUSINGELEMENT ANNUM, REV1E 4 AND 'UPDATE IN'I':<oDUC'rTON 3 . .' The fiscal, year 197.2 -73 was a highly productive one for Petaluma in the closely related-areas of housing and develop- ment " The year saw the enactment of _several new policy • documents, :notably the Environmental ;nesi'gn Plan and the Housing Element ; the formulation of the Residential Development Control • System to implement the new policies;; and tare final setting in motion of proq:rams to satisfy otn cia`1 development goals that have been in thei making for several years In addition ; one year' s development. allocations were petitioned for publicly discussed,, and granted: as set forward' 'by the provisions of the Housing Element and the 'Res dent :1 Development ,Cu'trol System- . Thus , after several years of identifying problems and devising solutions , the City found itself , near the end of the "fiscal year, well on the :way towards physical realization of housing and development goals established over recent years In order to -keep those goals realistic and current , however , it was specified in the Housing Element that they should be reconsidered and if necessary , revised on an annual basis Thus , it is the intention of this report to analyze specified goals in the light, of one yeart 'S experience with the system; in addition; the: affect's on housing ,and other local problems. of the system' s first year of operation will be measured- Final- ly, any .new considerations arising out of the first year ' s ex- perience. or any recommendations for change in goals on policies will be discussed:: HOUSING INVENTORY On March 1 , 1.973 ; nine, thousand nine hindr,ed ferty-three (9) 943) units of all types were in existence in Petaluma- Of these units ; eighty-three percent ('8e%;)' were single-family dwellings ; nine percent (9o) were multi-family dwellings in buildings ot .two to nine units; and three percent (`3°s.) were multi-family dwelli'ngs' in buildings of tern or more units„ Five percent (5%,f of all units were mobile homes,, Table 1 indicates how these units were distributed among the three sections of the City that were origDna•lly. definad by the Housing Element : (For precise boundaries;. see Map i- ) For example, the shows that the east section held forty--six, percent (46C of a`ll the single-family units in the City, but that eighty-nine percent (89%) of all the dwellings in the east section were single- family units (__ Lher owner or center occupised) - This will be most useful later in this' report when various alternatives: for proportioning allocations among section's bf the City are consider.ed.,. An indication o'f the physical, effects of the' Re_:'idential -Deyelopment Cont i:01 .S.ys+temp' s first year Of operation can be seen' • REPORT TO: Planning Commission August 2, 1973 FROM: -Planning Staff SUBJECT: Revisions to the Preliminary Housing Element Annual Review and Update The following are suggested changes in the Housing Element Annual Review and Updated 1, Page 2 , last paragraph_; third sentence: Change to read, "This may result, in an inflation of prices on even inexpensive units because of the supply-and=demand relationship, " 2 Page 3, footnote at the end of first paragraph. "Studies reported in the January, 1971 issue of ASPO (American Society of Planning Officials) Planning Advisory Service, and .also in the July-August, 19'71 issue, show that most planning departments surveyed consider mobile homes to be "sound low-to-moderate-cost housing and a much needed element in the housing supply. " 3. Page 3, last paragraph, first sentence. change to read, "First, the goal of attempting to balance housing, units among sections of . ' the City by striving to achieve one to ane relationships with existing incorporated land should h-t cs.lpp ly scrutinized, since much new development will take place on land that will be annexed in the future . " • 4'. Page 4., first paragraph, last. sentences.. Change to read, "This fact is reflected in the concept of a greenbelt on the East side. " 5. Page 4., second paragraph; fourth sentence.. To this sentence which . reads , 'Conversely; the policy of this City, like most' others , has been to encourage high density in the Central Section whore problems Of access and convenience are more readily resolved, " add, "especially with respect to pedestrian traffic. " Respectfully Submitted, Denni"s Boehlje Department of Community Development • DB•sd • Housing Element Annual. Review and Update v9 (continued) ).. by comparing Table li to Table ] Table II consists of all units already constructed in the Ci *_y , plus: all planned units; t ' including subdivisions approved before the Control System went into effect,;: but not yet completed ,, and allocations- granted in the first year of the System' s operation , Comparison indicates that a small ; but not insignificant start towards the goal of balancing 'development typea among sections ;o,f, the City has been reached For example , currently the east side contains only twenty--eight percent (:2'8'%) of the dwellings in multi-family buildings of ten or more units, but wlen the first year ' s alloca- tions are constr-uetad., it will contain almost thirty-seven per- cent (.370 ) This fsbot as high a percentage. as the west will • contain_ (52%) , but it still represents a big' first step towards remedying the current, imbalance Some oro,g'ress, then, has been Made towards achieving this particular. goal specified by the Council. Another goal specified by the .Council, in the Housing' Element was that not only types of- units ; but also number of units , be balanced among sections of the City as well Again, analysis of the two charts indicate that a small start has been made to- wards satisfaction of this goal - Thus:; forty-three percent (43%). of the already-constructed units is on the east side,' while almost forty-tour .percent (4.4%) of the total units existing or allocated is there-. Similar percentages, for the west side are forty-five percent (45%); of units in both ca-tegories -_ Thus , balance between east• and west has been achieved to some degree through the first year 's operation of the Control ,System, VACANCY FACTORS The Housing Element reported that, in Mid-1971• Petaluma had a vacancy of one and. one tenth percent (1:..1.°%) to one and seven tenths percent ( 1 7'%) ; much lower than the normal rates for, a city growing as rapidly as Petaluma. In October , 1972 , HUD con- ducted another survey of postal vacancy rates':, these rates are as follows : Total Residences Apartments Mobile- Homes May, 1971 1, 7% 1: 6% 4 - 3'0 Oct, 1972 1, 2% 58H% 6.-:10 5s. Several things are indicated. by the information in the table First , as is logical, the. .morat'oium, coupled with the Growth Control System, has resulted' in an even tighter vacandy' factor for single-family units than the previous one ..itself already ab- normally low, This results in an unhealthy' inflation of prices on ,even inexpensive units because Of the supply-and-demand relationship. One consequence of this is the low vacancy factor' • ' Hbusing Element Annual Review' and, Update--1973- (continued) [: for mobile home units . Apparently persons frustrated by _few Vacancies and, high cost in the single-family market are increas- e, imgly turning to mobile homes as the only- available—bat tapidly . depleting--source, of ,inexpensive owner:-occupied, housing, On the other side of the coin, vacaneies in multiple apart- ment buildings ;in the .City fell, for the ,first time in several years, in the range, co,nsidered healthy, six_ to eight percent, This could be an indication of several factors _ First, simply the recent increase in apartments constructed could have driven the supply up to a healthy figure, Second, hew apartments con- structed recently may be too expensive for the current demands of local apartment seekers, driving them to the mobile home parks; or, as is the more likely case, the popular awareness' which still conceives Petaluma to be ;a Strictly single-family city has not yet caught up with the market shift in the City, When it does, new residents may tend less to be medium-aged families with Children and more to be, the typical apartment dwellers . .ALLOCATIONS A major purpose ,of this update. of the Housing Element is to reexamine the original allocation proposals in the Element and to determine whether they represent the optimal distribution of units between sections. One method of determining the optimal arrangement of dwelling units is to detettiine how they stand in relation to the distribution of the City' s total land area among the sections_ Table ,III presents this measure : 'Assuming bound- aries defined in the Houeing Element, the east .section of the City comprises forty_ €our percent (440) of the total City land area, a one to one relationship with the percentage of the City' s existing and allocated dwelling units on the east side, The situation is not so equal for the west and central sections, however, The west section contains thirty-eight percent (38% ) of the City ' s total land area and forty-five. percent (45%) of existing and allocated dwelling units, yielding a one to one and two tenths ration; and the central section contains eighteen percent ( 18%) of the land area , but only eleven: percent (11%.) of the ;dwelling units, yielding a One to six tenths ratio- Several consid'ei:ations. must be ;noted before any real import can be attached to these calculations however, First , attempting to balance h_ ousngt units among sections of the City, by striving to achieve one to one relationships with • existing- incorporated land may not be the proper procedure 'to follow, since much new development will take place on land that will be annexed in the future This -is particularly true on the east side, but not so 'much .as the west,, for two reasons: There are, within the western city limits, several vacant parcels of land that can absorb a 'gr-eat deal Of that area ' s allocations for - the next three yea s , and there are Some limits to future: annexa- tion because of resident unwillingness, in areas in the northwest side or because of environmental factors (slopes) . Thus,, the east Housing Element Annual .Review and Update---1973' (continued) side should probably be Scheduled for a bit more development than the west since it has adjacent to it more annexable: land: This fact is reflected in the location of the greenbelt on the east side, Second, despite the fact that the central portion occupies eighteen- percent (1814 of the City's land,, it should not be ex- pected to hold eighteen percent of its dwell'_s-ng units . This is so because more than n -half the land in that area is zoned for commercial or industrial uses, In addition, some potential land annexation areas have, been blocked by resident unwillingness to come into the City„ Conversely , the policy of this City, like most others, has been to encourage high density in the central section where problems 'of access and con-venience are more readily resolved, Thus , some high density development should be encour- aged when new projects are proposed in the central section so that this area can absorb some o.f the development load currently being placed on the: west Side. • Over the next four- years, then' the .Cpuncil and the Resi- dential Development Evaluation Board should strive to direct more multi-family development to the east and central sections of the City. In this way, the east side can assume its share of multiple units which will help limit sprawl. For this reason, it is recommended that the Council reverse last year ' s decision to combine the central and west sect ions ° allocations and instead grant separate allocations for each, section., By so doing, the Council and Board will have more leverage with which to regulate densities in order to achieve previously articulated goals ,. According to Table II, each section and the City as a whole contain the following proportions of each type of unit : • Single- Multi Mobile Family (All 'Types), Home Total 78,,'85%: 16.. 551 4 . 60% East 85,.01% 7 . 231 7 : 76% West 71 .49% 2'5 , 81% 2 , 70% Central 84..•8i'%• 15 , 191 0. 00% Since the: east and West ate mainly residential living en- vironments with, approximately the same: access , needs, and attributes , the fairest policy might be to grant allocations that would act to equalize types of units in each of those sections , This points once again to development of high density multiple units , and especially duplex-triplex type units on the east side ' more than the west. Finally, since the central section, as dis- cussed previously, has special characteristics that make it ideal -9- Housing Element 41/4eai TeVieW and, UPdate- -1111/ CdonpinUed) for high density development, the best policy might be to in- crease that area 's multiple family 0nits . Thusb, the start reecthend's ti-ot residential development ,a2ilocatacins lor the next tnfee •yeees be established as tollows . " EAST CENTRAL Single Multi Sangle Multi Single Multi Year Family FaMiLy Tti 1Family Family Ttl LFamily Family TU. 1974= 75 120 130 250 30 TO l-cOH 120 30 150 1975- 76 120 140 260 25 65 90 1. 120 30 150 1976-77 130 140- 270 25 55. 80 i20 30 150 • Tables IV. V, and V1 Indicate the Physical distributional consequences ot allocating Units tacordiing to these guidelines by listing the percentages et each type of 'unit in each section and in the City atter each yea,. a allecatacns Sevelal things become apparent riOfft a review of the tables First , the breakdown oi types of units in each section of the City approaches breakdown Of. typea, in the City as allocations proceed- This indicates, more equal ddatribution of dwelling types among neighborhoods - Second, the goal oi encouraging a higher density in the oentiai section is approached Third, the east section takes on a larger percentage of units than the west after the 1975- 16 allocations are made, and it does so by higher density development; thus , counlefacting the current trend to- wards sprawl-. At the same tithe , hGwever , more than half of the units are still reserved for sanglestamily use a situation that should help ease the demand rot sinclifami„Ly use a situation that should help ease the demand tc r. sibqle-family units , and improve the vacancy factor fell that ol.-aS of dwellings- Finally, the west side is allowed to upgrade by an increase in the per- centage of single7tamily urn Ls in that section - As indidated on the attached chart of ,allotments awarded durina the -r-,nt ?pare ,, there a' a total. of 73 unitn out of the quota of 500 set by' the, City Council for which no allotments were awarded for the 1973-74 construction year. in order to keep up with the goal of allowing 2, 500 units to be constructed during the five-year period, the City Council should have the possibility of adding these 73 units to this year' s 500 units . -5- . •1 .. Housing Element Annual flpviet and :Update-1973 (Continued) The staff recommends that the 13 addi leMsL u_.its not he Specified for any particular: portion of the. City or for a paa t .cula.r housing type., but the units insce:id bc, placed in s general allocation bank to be allotted to any portion of the City. These units should be awarded to developments which rebe;i've, high 'evaluati.ons but are not awarded an allotment. because of an. imeuff1eaent quota ; The City Council could set min ,mum standards for awarding these allotments at the time of revising the Residential Development Control System. In future years further revisions could he made through the Housing Element Annual Review and Update to correct any modifications that may he a result from these awards: Allocating units along these guidelines wi.11 make a start towards a partial so:l.ut/on of the problems listed in the Housing Element, Other problems will be dealt with in .later sections of this report. POP(ThA':'ICN/HOUSEnvl.0 The above recomniOndations for a. Slightly increased residential density should have a very favorable, effect on such population-related factors as schools , parks, etc. 'i'bi's is the case because higher den-. sits units tend to have a lower population per household than do single-family units. Table VII contrasts current population/household figures (estimated by the Planning Department from 1970 U: S . Census • data) with 1'969 figures taken from the State Census .. • 5a- 171 . ' . . . . ' • - . Housing. EleMent •n4)nual Review and UPdater-.1 lqcht111Uen). . . • - ' TABLE VII • Ropulation/Hopseh&ld 1969 Current Single 'E,-affalY ' 3 . 37 • 3 ...22 21- unit,Slawelling 2 15 • 2 . 06 101- Un'at /S 'dwelling - , • -... (4,- for r969.) 2. 21 2H 14 , Mobile Homes 2 . 00 1, 59 L._ .. .. The expected total population, then, after the next three years allocations, based on the 1970' pdgU1atien/household esti- mates, is un,Its 30 , 34'2 Multiples 5 . 244 Mobile Homes 8.06 ' TOTAL 36392 . . . This Ipleaks down East 16 , 309 West 1-5 ,6,33 . , . Central 435.0 . . ,, , • . . - PRICE: ANALySiS. , In 1970 , the mcaian -Yelue blHall single-family owner- occupied housing in the City was just over .$20 , 000 : This median . _ . . ' was fairly unifor-M throughout the City with the exception that Neighborhood 3 ( see. Map. 11) had amedAap o‘f about ,$19, 000.- • • .1.970 $ingl'e.‘tamily Housing COSt SreakdbWh $15, 00B 15 ,.00iff-20 , 0,00 29 ,4. . . 20, ;05 , 000 43.!4.7 . 25 .,( 6. 01)11 ,23 r5 3 •,000 6 .7 • - - In August , 197L , immediately Pelbre the irdD -iation of the Residential Development. COnfTbi SYS:tem, the overall picture of :40USIng prices in the' City was somewhat similar to the 1970 -6- • ilk 0 - . _ . Housing Element irnual Review and Update- -1973 continued) breakdbwn- The Median in 1972 of all sangle= iwly housing in the City was close to $2a,o0o and the. breakdoWn Wae, as folloWs . S1500.0. 1 , 082 ' 15 9.% 15,, 000 -"20 , 000 i - M9 26 7 - 20. 000-..25 . 000 1 . 544 22 . 8 35 , 0.00 1 , 980 29 2 35 , 000 364 5 A•. . 6, 77'9, 100 0% A better understanding , hoyeveb , 'of the trend in housing costs under market conditions Ln existence bet6. e the cAso5,Ln Control 51stem went into eiteot can be yleaned by simply breaking out the .cOst oi all housing built between 1970 and 1972 This , gives a picture o't the current cost of a now house built under free market condmtiorrs. no growth control, (and perMits an analy- sis of the trend The. median cost of -all, hoasing' constructed just during thiS period was just under $24, 000 and the breakdown . was as follows : 815 , 0,0,0 231 16 1% 15, 000L20 , 000 31.3 2i 8 , 20 . 000- ,25: 000. 336 23 3 25100.0-3& 0.00 536 3 -/ 3 35 , 000 21 15 1 , 437 1:00 0'6 Close examinatidn indicates that while tne median costs of all three categories remain about the same, distribution shifts towards higher cost unats with the progression or time- . ..93 L072 i9T0-32 . boakdown breakdow:. Bqeandown $15 , 090 167% 15, 9% 16 , 1% 15, 000-20 , 000 29 . 4 2.6 ,7 21 - S 26-, 000-25 , 000 23 7 2.2-8 23 . 3 25, 000-35, 00.0 23 5 219 . 2 37 :3 35, 000 6 . 7 '5 4 1 - 5 . This is especlially true When one considers that a large per- centage of the lower cOst units d6Vdloped in the City between. 1970-72' were mobile home units :Thus, a definite trend towards higher cost units was welt 'under way at the onset of the Develop- ment Control System- The rising cost OD decent housing units is , of course, a well known ,fact of modern life and is due to a variety of factors-- inflation and rising costs of building materials and requirements , making the same house mote expenseive in 1972 than in 1970 . and the rising median income of Petaluma Tesidents creating a market Housing .Element enual Review and Update--11/k (continued) for more hu'xor ous: homes,,, to name a, tew. Such •factors, AS is well known.,. are( econ'omically re:gress' ve , since they tend to have a negative e tect on, persons whose incomes axe not rising, as rapidly as otheris.. Thus; for some people it becomes More and mote dit: icult_ to Afford a decent living .in. Petaluma, However , one of the goals exnressed. in the Housing Element was to attempt , through the Residential Development Control System, to redress this problem somewhat, by providing low-cost housing for the needy segment of Petaluma' s population. Thus, after one year 's development allocat.rons, then., the question is : How does the current price picture look,?' On the east side of the freeway, the Median cost of single:- family 'Units approved, during the 15'3-74 allocation year was #32 , 50:0 , Thiscon:trasts with a current median price of close to $2.5 , 000 On the west;, the median cost Of allocated units ,is $319 , 000 , contrasting with a median total price of about $22 , 000 . Thus, for single=t mrly owner -occupied' housing , a previous trend towards higher oust hcus;ing has been exacerbated by the• Ecc':'cp-- ment Control. System;. The total number of single-family units to be approved under. the Development Cont-el System is such a small portion of the total housing stock„ however, that it should have little affect on t;he overall median price of all City units ; but it will tend to innate the values , and thus the prices , of almost all other dwellings in the• City - For multiple units , ne rent breakdown is available for the period between April , 19)70 , and the present . As of 1970, however , median rent in the 'City was Dust over $100 a month-. Since 1970 , , the median has been; rising, since most apartments recently con- structed are in the higher price bracket:. Rents for apartments constructed under the contiol system, ThbWeVer , average around $2"00 a month on both east and west s-id'es ObVitusly , the cost- related goal of the Housing Element- -that .of assisting the elderly and other diSddVant'aged groups in obtaining either low-cost single-, 1 family housing or low-ren-t multiple u'nrts.-ihas , as of yet , gone unfulfilled . • • Thus , theie' ,iS still a necessity for some kind of low-cost housing in the City, since in both the owner and renter occupied categories, housing costs are beginning to inflate beyond the ability of some individuals--particularly the elderly and the young.--to pay , in the original Housing :Element , it was recommended that eight to twelve percent (8 -12o , of all allocations granted annually should be given over to low-cost housing that would sell or rent below some ri'gidl'y defined rates.: Unfortunately , because of recent federal actions: building rer : cements : inflation, speculation, and other factors, it is :becoming increasingly difficult for builders to construct. housing that could reasonably be defined as low-cost--s_ay, below $1-8 ; 000 or $100 per month rent- Nevertheless , the Council .could continue to adhere to the eight to twelve percent low-cost. policy , rigidly defining low-cost by specific figures and fUrtter investigating ways of assisting developers in keeping costs down for this category of housing-- this would be especially ,effective if each, developer who received 8 _ Housing Element Agrual Re:vaew and Upda'te- -1. (continued) an allocation were made tb const':ruct a `few low-cost units . As an alternative the Council could take hold positive action than that .recommended in the, original element,.. The 'Council could modify its provision that about_ ten percent t10%,1 of all new units be low-cost (requiring , 'say, developers to contribute on seven or eight; percen't) ; and in addition ; join the County ' s public housing program, aggi_essrvely planning for a sufficient number of low-cost units in that tash-ion_ This policy would most likely satisfy the legal and, moral requirements of Petaluma s planning 'program and might be a more realistic and efficient method of achieving the goal of a decent home for all residents , regardless of income level, (See Appendix I for a discussion of the operation of a public housing program- ) CONCLUSION At the end b;t a year ' s operatiopat the Residential Develop- ment Control System, the City rinds itself well on the way towards . • solution of several goals articulated 'En the original Housing Element Among these are the goal of distributing number and types of units more equally among 411 sections of the City;. the //&.✓ ( - a-goal of encouraging higher den ;it i.es . especially in the center of the City, to redress the shortage of multiple units, and the U goal of discouraging sprawl . Several other goals, however, remain 41�W' as far from" solution as they did at the beginning of the moratori- um--indeed, farther from solution than at that time in some cases , • Particularly serous in, this regard are goals related to provision of housing for residents with low and moderate, as well, as above average, incomes Thus, as a tact of modern life,. the need for • some part of positive; remedial action becomes more obvious. if the Council wishes these income-related, goals to `be. achieved as successfully .as the others , it may wish. to take positive action aldng this this inally, the guidelines presented earlier in serve to keep the system functioning smoothly in the present satisfactory direction . • • -9- all- 6 () r.1 I A `Xf, r H }-r y'H H H' O H O F3 ;90: Ct'' It" H CO o • m r- r ,a (Al .a w r F-' .F• . Lp 'Y_= rt 1-" adP U N "a al co rn-Pr CD O. . rt W F' M N f CO O CO hJ - hi F-'rD N N r I N W N N I CO • Fu. 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CO a o v� t . O (0,t r rn w m 0. 1— a o X a N o N y r r • Ul 1 1 Cfi. r W u.1, x r r o w 1 1 'm a G., ID, p, 0 . I _ G P. • a t N :.1 W N 0 0 Ol a PI O r H. r- a f0] • . r r a., a. a 1-^ ICJ U? l0' 41 r 0 IV o F- .c3 m U1 'CI y 1.. U.). io a O O G Ca • r . r r r. H 0 0 0 0 O o o O tlP' o O O O 0 O C7 • 0 • % O F TOTAL C I T Y LAND A R E A A • Land Total Units After 1st Year' s ' Allocat'�ons EAST 448 441. WEST 38%' 45 > CENTRAL 18% 111 • TABLE III • • • -12- n ! sI c� �. � 1_ . to - 'H '�a-3 Z 2 �� Cn Z H '0 . tC L G C H 5 ...... O () '- y7.,. ().S C) ,,3 ' • aW. ' rs >.. y '-.' > Hy' S . . 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O w' I I . b1;, a w 1c > o . aa. en K7 H • to hi a I N 01 O dP H O I. a 01 - lD U . ' m. J' tP H N H H a. Ut a '.� m a . H 'a. W a a U1; D'S . I N . , • 0 ' .lar 1d .1=' 0 01 N 01 1 N) N- rn 0 n . . 1-3 f••'' i 1 F'' H H o a 0 o 0 0 0 0. 0 do Z . v) 0 •o. o 0 0 0 0 0• _l F. APPENDIX 1 Investigation of the Housing Authority alternative reveals se:veral. factors that deserve special attention,: According to ,the County's Housing Authority Executive Director , Petaluma could establish its own program, but there is a very ,good chance that HUD would not fund it or any other new, agency in the County . In- stead„ he said,, the meet .logibal approach. if Petaluma wished to take some action would be to join the County' s program relying on the County Housing Authority to obtain, .more funds and then to earmark fifty to seventy-five units for use in Petaluma„ Second, the Hodsing Authority could lease some of the older homes in the City , and it necessary, selectively upgrade them, On the east side , it could lease FHA mortgage .foreclosures and would thus provide: an alternative use for the holders of such property:: Since foreclosures have been occurring at a signifi- cant rate on the east side, this could be a stabilizing factor in the condition of flux that currently prevails there, Indeed, Housing Authority tenants are often more lasting occupants of such homes than purchasers . In addition, the Housing"Authority can help developers • provide new low-cost housing in areas, where it could not other- wise be piovided, in return for guaranteed monthly rates (whether the building is occupied or not)) and for lowered main- tenance costs, developers are often willing to let new units go at a price the Housing Authority can afford to pay ($125 for one-bedroom units; $145 for two-bedroom' unit's, $160 for three bedroom units; and, $'l85 for four-.bedroom units) , In turn, the Housing Authority-, with federal funds, can let the units to tenants ,for a much lower price than the free market can allow; Thus, the effect would be attraction of new units similar to those allocated last year, with the additional benefit of rental of those units for a much lower cost than would, otherwise be the case, Through all this., adequate main- tenance is assured by the Authority. Finally; providing low=cost. housing in this manner dis- seminates it throughout the community and °prevents the large public housing complexes that have: won such a negative reputation over past years . In many 'cases, it represents an upgrading of existing units, in others, it can provide new units for the City at a low cost .and satisfy one of the goals adopted' last year As such, establishing a Housing Authority remains a feasible alterna- tive solution to the problem of providing low-cost housing in an inflated market . • -16 4