title
Receive an initial review and assessment of affordable housing efforts in Solano County prepared by Consero Solutions in coordination with the Department of Resource Management and the County Administrators Office; and Provide comments and direction to staff and the consultant team for formulating recommendations on the County’s approach to affordable housing moving forward
body
Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors:
1. Receive an initial review and assessment of affordable housing efforts in Solano County prepared by Consero Solutions in coordination with the Department of Resource Management and the County Administrators Office; and
2. Provide comments and direction to staff and the consultant team for formulating recommendations on the County’s approach to affordable housing moving forward.
SUMMARY:
Consero Solutions (Consero) will be presenting their initial findings (Attached) regarding affordable housing efforts in Solano County including a discussion of options and funding opportunities. Consero has been working in coordination with the County Administrators Office and the Department of Resource Management to conduct the assessment which included significant research, interviews with numerous stakeholder, and discussions with other counties. Key objectives of Consero’s work include gaining a better understanding of current affordable housing efforts in Solano County, identification of gaps where current programs and activities are not fully meeting needs and identification of options for moving forward.
Because of the Solano County’s many decades of city centered growth policies, the County has not typically engaged in entitling affordable housing type projects in the unincorporated area. With the exception of a couple of specialized group homes, affordable housing projects are typically built in the cities. The County has contributed through loans or grants to some of these projects. Examples include the Temple Arts Lofts in Vallejo, the Habitat for Humanity project for disabled veterans in Dixon, a ground lease and a financial contribution to the Habitat for Humanity project in Rio Vista for homeless veterans. In addition, the County has made programmatic contributions and loans to entities such as Mission Solano, Shelter Solano and Community Action North Bay to secure bed space and other services. The County is also an active participant in the Community Action Partnership Solano Joint Powers Agency (CAP Solano JPA) and makes an annual financial contribution of $158,375 to the agency for their programs and projects.
As noted above, Solano County typically has not been directly involved in entitling large scale housing developments due to decades long city centered development policies. While significant numbers of housing units have been developed that are affordable to moderate incomes in the cities, there has been far less development of housing that is affordable for low and very low income individuals including specialized housing types needed for populations typically served by the County’s social service and health care programs.
The work performed by Consero takes a closer look at what has been accomplished in meeting demand for affordable and special needs housing, what could be accomplished and how other counties have been organized to address similar needs. With increased funding opportunities emerging to address housing and homelessness through the State budget process and legislative action, it is an opportune time to step back and assess the current situation and consider whether to look more broadly at the County’s role in contributing to meeting housing need and opportunities. The Consero report will provide the background and framework for this discussion, with Board input critical in developing a set of final recommendations.
FINANCIAL IMPACT:
The cost of the Consero contract to prepare the study was $41,450.00. The cost of the contract is within the authority of the County Administrator and was included in the Fiscal Year 18/19 and 19/20 budgets. Any cost for additional programs or staff that might evolve as a result of this process would be evaluated in conjunction with follow up actions as necessary. The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2019/20 Adopted Budget.
DISCUSSION:
Housing production, housing affordability, and homelessness have emerged as key issues receiving significant attention by the State Legislative and the Governor. There are an significant if not unprecedented number of housing related bills under consideration with some enacted. In addition, there are a number of related funding allocations in this year’s State budget directed towards housing and homelessness. The affordable housing crisis in the Bay Area has a geographic reach that directly impacts Solano County. For example, Solano County has become a major outlet for Bay Area residents seeking more affordable for sale residential units. Even with recent increases in for sale prices, particularly for new single family residential units, the price point in Solano County is still far more affordable than equivalent housing in the core of the Bay Area.
Regrettably, Solano County and its cities do not receive credit for producing more affordable housing in the context of the Bay Area housing market. Units that might qualify as low income in a core Bay Area location under the housing allocations associated with the Regional Housing Needs Assessment (RHNA) process are not similarly categorized as low income in the Solano County market and thus Solano Cities receive no such credit in meeting allocation requirements. This is despite the fact that price pressures from the Bay Area housing market are reducing affordability to local residents, particularly those population sectors that have less means to keep up with rapidly rising rents and home prices.
Consero was hired to conduct an initial assessment of affordable housing production and programs in Solano County with a focus on gaps where needs are not fully being met. Their presentation will highlight initial findings and discuss options. They also assembled a comprehensive list of funding opportunities that are available along with associated timelines and eligibility requirements. The extent of the list provides a point of emphasis on the importance of further organizing the County’s resources dedicated to affordable housing to take full advantage of these opportunities.
The Consero findings acknowledge the important work already being done by the County to increase affordable housing. The County is an active participant in CAP Solano and provides a financial contribution to its programs. The Health and Social Services Department has been successful in receiving grants such as “No Place Like Home”. Further, the County is active in the Regional Hosing Needs Assessment (RHNA) process working with all Cities in the County and the STA to establish a sub-region which allows the local jurisdictions determine how housing allocations assigned by the State Hosing and County Development are to be distributed locally in Solano County. Recognizing these efforts and the County’s contributions to affordable and special needs housing and beds noted above, the Consero work explored and suggests options for further organizing efforts by the County and in partnerships with the cities to facilitate more affordable and special needs housing throughout the County.
The findings and options explored by Consero do not suggest Solano County should contemplate changes that would involve development of housing in the unincorporated area. They do explore partnership and other organizational changes that could facilitate development of housing that is targeted to needs and gaps that directly correlate to needs of clients utilizing the County’s various services and programs. Examples of options discussed include:
- Form a Solano County Executive Team to develop and implement a housing plan. Similar approaches were utilized in several counties they interviewed.
- Fund development of and implement a housing plan.
- Further cultivate partnerships with health care providers in the region that may provide support in efforts to address housing needs, particularly for the homeless population and other special needs areas.
- Expand efforts of CAP Solano by bolstering governance and increasing funding.
- Continue to build on the partnership with the STA on housing and affordable housing issues in recognition of increasing linkages between housing and transportation funding.
The Consero findings and options explored represent a broader look at what is being done to address housing in Solano County with a focus on affordable and special needs housing. The availability of housing has become a significant issue under the current market conditions. Mandates from the State and Regional agencies to address housing needs are increasing. The Consero presentation is intended to assist the Board in assessing what the County is currently doing in addressing housing issues, whether or not additional effort is needed, and what options might be considered if the Board wants to organize differently or expand programs in the future.
ALTERNATIVES:
The Board could determine not to receive the Consero presentation. Such action is not recommended as affordable housing is an important issue and the information presented is intended to assist the Board in evaluating the current state of affordable housing efforts in the County and options for moving forward.
OTHER AGENCY INVOLVEMENT:
Consero interviewed staff from several counties and department staff from the Department Health and Social Services and other local agencies in developing their findings and options.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION