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Recommendation to Establish a Housing Costs and Rents Task Force to Provide Information on the State of Housing and Rental Pricing in Alameda and Prepare a Final Report for City Council Consideration. (Community Development 481001)
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To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Recommendation to Establish a Housing Costs and Rents Task Force to Provide Information on the State of Housing and Rental Pricing in Alameda and Prepare a Final Report for City Council Consideration
BACKGROUND
On July 15, 2014, the City Council approved a General Plan Housing Element for the period 2015-2023. As part of the public discussion, Renewed Hope, East Bay Housing Organizations, and other local housing advocacy groups requested that the City include a program to study the impacts on tenants of rising rents and make recommendations about programs and policies to reduce any adverse impacts such as displacement of long-term residents. Rather than include a program to establish a Housing Costs and Rents Task Force (Task Force) in the Housing Element, the City Council directed the City Manager to prepare a proposal to form a Task Force and to present that proposal for City Council consideration at its September 16 meeting.
DISCUSSION
The proposed program was described as follows: "Create a Council-appointed task force to provide information on the state of housing and rental pricing in Alameda, including trends, impacts on residents and families due to rising costs. The task force will include a balanced membership of all stakeholder groups, including housing advocates, Realtors, landlords, and tenants. The task force will identify the root causes for recent price increases, existing efforts and policies in other Bay Area cities to combat these increases, including effectiveness and best practices and research into potential solutions. The findings of this research will be presented in a final report which should include multiple options and if consensus is reached a recommendation for Council action on a preferred option."
Staff is recommending creation of a seven-member Task Force that is consistent with the spirit and intent of the proposed program described above. It is proposed that the Task Force convene in October and conduct its business over the next six months. A final report would be presented to the City Council in May-June 2015. During that time, the Task Force would hold a minimum of two public meetings to take public comments/receive public input. The Task Force will be charged with answering the following questions:
1. What is the state of the residential rental market in Alameda? This could include a quantitative analysis of rental rates, vacancy rates, absorption trends, and the length of residency and race/ethnicity of residents in different types of rental units. The answers to this question will help identify the need/define the problem regarding housing costs.
2. What have been the impacts on rental rates, supply of rental housing and the physical condition of rental housing in jurisdictions with rent control/stabilization ordinances? This could include a background report summarizing longitudinal data regarding rents in stabilized units vs. market rate units, the impacts and effectiveness of existing programs in the Bay Area, and the legal limitations of rent stabilization (e.g., the Costa-Hawkins Act).
3. What changes, if any, need to be made to the City's Rent Review Advisory Committee (RRAC)?
4. What changes, if any, need to be made to the Alameda Municipal Code (AMC) relative to residential rental housing?
The answers to questions 3 and 4 may include information that compares the RRAC and the AMC to what is present in other cities that have similar programs. Any proposed changes would be informed by the research obtained from answering questions 1 and 2.
Staff is proposing that the Task Force include the following stakeholders:
1. The President of the Planning Board or his designee
2. A representative of the Alameda Chamber of Commerce
3. A representative of the Alameda Association of Realtors
4. The President of the Social Services Human Relations Board or his designee
5. The Chair of the Rent Review Advisory Committee or her designee
6. A representative of Renewed Hope Housing Advocates
7. A representative of the East Bay Rental Housing Association
The Task Force would be staffed by Eric Fonstein, Development Manager in the Community Development Department, with assistance from Victoria Johnson, the Housing Authority's Director of Housing Development. In addition to City and Housing Authority staff, a consultant would be retained to assist with the required research and data analysis.
It is requested that the City Council authorize staff to move forward with the Task Force as described above. Following Council's approval, staff will work with the stakeholder organizations to determine the membership roster and convene the Task Force's initial meeting in October.
FINANCIAL IMPACT
There is no impact to the General Fund in establishing the Task Force. Funds are available in Fund 209 (Community Development Fund) to hire a consultant to conduct the necessary research and analysis and provide for meeting supplies and other ancillary expenses. It is anticipated that the consultant contract would not exceed $35,000.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Establishing a Task Force to study housing costs and rents and recommend policies and programs is consistent with the intent of the Housing Element to ensure that the City's housing stock meets the needs of residents in all economic sectors, including very low- and low-income households.
ENVIRONMENTAL REVIEW
Establishing a Housing Costs and Rents Task is not subject to environmental review in that it is not a "project" for purposes of CEQA because it is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment. CEQA Guidelines, section 15378 sub. (b)(5).
RECOMMENDATION
Establish a Housing Costs and Rents Task Force to provide information on the state of housing and rental pricing in Alameda and prepare a final report for City Council consideration.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed
Juelle Ann Boyer, Interim Finance Director