An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, August 13, 2002 commencing at 7:03 a.m.

Present: Council Members – Hitchcock, Howard, Nakanishi, and Mayor Pennino

Absent: Council Members – Land

Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston

City Clerk Blackston reviewed the weekly calendar (filed).

C-1 "Regional Housing Needs Allocation"

Community Development Director Bartlam explained that the San Joaquin Council of Government’s (SJCOG) mission is stipulated in state housing law and it is charged with distributing regional housing needs throughout the County. He reported that at the end of 2002 SJCOG is expected to approve an allocation process and method that the City will use to accomplish its housing element update. The methodology that San Joaquin County uses was derived from the Association of Bay Area Governments (ABAG). The ABAG model looks at both housing and employment projections to determine what each community’s fair share of future housing needs might be. He stated that the housing element update is a "planning exercise" and is not meant to be a production goal. The City is not expected to have to build all the units that will be shown as its fair share of housing needs.

Council Member Howard pointed out that SB 910 relates to penalties on jurisdictions that fail to achieve certification of their housing element.

Mr. Bartlam replied that Lodi’s current housing element is not certified by the State Housing Community Development Department. He acknowledged that the senate bill adds a penalty phase and gives the State Housing Community Development Department far more power than what it has had in the past. He noted that SB 910 is being vigorously opposed by local government and the League of California Cities. The bill was recently delayed in the Assembly Housing Committee.

With the aid of overheads (filed) J. D. Hightower, City Planner, reported that in 1990 there was a projected need of 36,277 dwelling units that need to be constructed within the County according to the growth models employed by the State Housing Community Development Department. It is projected that by 2008 there will be 23,103 households in Lodi and approximately 35,000 jobs. Using this projection, Lodi’s fair share of housing would be 4,014 dwelling units. It was determined that a family of four with low income could afford $887 per month, and those considered very low income could afford $554 per month on housing. Mr. Hightower reported that 26.3% of owner-occupied units in Lodi spend more than 30% of their income on housing and 44.2% of renters spend more than 30% of their income on rent.

Mayor Pennino commented that 30% of average social security income for senior citizens amounts to $210 per month.

Mr. Hightower continued his report and noted that Lodi is under no obligation to provide the fair share units; however, it is a goal that the City should try to accomplish. He stated that there is enough capacity under the City’s growth allocation plan to accommodate the units and commented that no obstacle exists, it is based on the market.

In response to Mayor Pennino, Mr. Bartlam reported that Lodi has 55% homeowners and 45% renters. He explained that during the decade of the 1990s there were no multi-family rental housing projects approved or built. Older single family dwellings are not being resold for owner occupancy, they are being rented.

In answer to Mayor Pro Tempore Hitchcock, Mr. Bartlam stated that the City mirrors the County percentages. He reported the following 2000 census statistics for Lodi: 24.7% very low income; 17.17% low income; 18.52% moderate; and 39.62% above moderate.

Mr. Bartlam explained that the next step is for each of the communities in the County to make comments relative to the allocation process. The SJCOG board will then take up the matter for final adoption at the end of the year. Once the City has the SJCOG adopted number for the community, staff can update the housing element. During this period, staff will begin the consultant selection process. He noted that the current year’s budget has funds available to hire a housing specialist to assist staff in generating the housing element, which needs Council adoption by December 2003.

Council Member Howard suggested that Lodi’s comments include: 1) continued opposition to SB 910, and 2) emphasis of the fact that Lodi has adopted a 2% growth rate, which should be recognized in the process for compiling the data.

In response to Council Member Nakanishi, Mr. Bartlam believed that focus should be placed on actually producing housing, rather than housing elements. He stated that a unit for a two- or four-person family in Lodi cannot be built and rented for $400 a month without either subsidizing the land cost, construction, or cost to provide services.

Council Member Nakanishi commented on the following obstacles and issues related to affordable housing:

• NIMBY (not in my backyard) – residents are often opposed to apartments being built near their property. An effort should be made to educate the public about the need for apartments.
   

• State law requires prevailing wages, which increases costs.
   

• Insurance issues inhibit construction of condominiums.
   

• City ordinances add burdens to building homes; he suggested not charging permit fees for affordable housing.
   

• Bay area homes are priced high because of greenbelts, and the influx of these residents into the valley has increased home prices here.
   

• Interest rates are increasing.

Mayor Pennino asked Mr. Bartlam to present today’s topic information to the Board of Realtors and get input from them.

PUBLIC COMMENTS:

• Eileen St. Yves did not believe that any communities in California would be able to meet the desired housing and element plans that the State would like them to have. Five bills are currently pending, which may serve to put rental housing owners out of business. She reported that rental housing owners provide 60% of the housing for the population of California.

In reply to Mayor Pennino, Ms. St. Yves stated that her one-bedroom apartments rent for $595 and $615 per month. The citywide average is $680.

• Debbie Olson representing the League of California Cities warned that a bill similar to SB 910 is being considered tomorrow and encouraged a City staff member to attend the committee meeting.

• John Beckman reported that a $3.5 billion State housing bond will be on the ballot in November for the purpose of subsidizing projects, with priority given to infill and Brownfield projects.

Mr. Bartlam pointed out that State housing bond money goes to communities with adopted housing elements, consequently it is a source of funds which Lodi has no ability to tap.

• Tammy Jenks stated that she and her husband own a couple of rental properties in Lodi and are members of the Renters Association of California. She noted that some of the pending laws will discourage people from getting into the rental business. Most members of the Association are older individuals who are tired of fighting the government. She projected that when their children inherit their parent’s properties they will sell them immediately, which will make housing affordability issues even worse in the future.

None.

No action was taken by the City Council. The meeting was adjourned at 8:16 a.m.

ATTEST:

Susan J. Blackston
City Clerk