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Exhibit A- Part 1 Rosemead HE Public Hearing Draft UPDATED 121321 (1) City of Rosemead 2021-2029 Housing Element City of Rosemead Community Development Department Public Hearing Draft December 2021 Rosemead 2021-2029 Housing Element This page left intentionally blank. Rosemead 2021-2029 Housing Element i Acknowledgements City of Rosemead City Council Polly Low, Mayor Sean Dang, Mayor Pro Tem Margaret Clark, Council Member Sandra Armenta, Council Member Steven Ly, Council Member Planning Commission James Berry, Chair John Tang, Vice Chair Steve Leung, Commissioner Daniel Lopez, Commissioner Lana Ung, Commissioner City of Rosemead Staff Gloria Molleda, City Manager Ben Kim, Assistant City Manager Ericka Hernandez, City Clerk Lily T. Valenzuela, Planning & Economic Development Manager Annie Lao, Associate Planner Kinson Wong, Assistant Planner Rachel Richman, Burke Williams and Sorensen, LLP, City Attorney Project Consultants RRM Design Group Veronica Tam + Associates Morse Planning Group Rosemead 2021-2029 Housing Element i This page left intentionally blank. Rosemead 2021-2029 Housing Element iii Table of Contents 1. Introduction ................................................................................................................................. 1 A. Purpose of the Housing Element ................................................................................................ 1 B. Housing Element Contents ......................................................................................................... 1 C. Organization ............................................................................................................................... 2 D. Relationship to Other General Plan Elements ............................................................................ 2 E. Community Participation ............................................................................................................ 2 F. Source of Information ................................................................................................................. 4 2. Background Information ............................................................................................................... 5 A. Housing Needs Assessment ........................................................................................................ 5 B. Market Setting ............................................................................................................................ 5 C. Demographic Profile ................................................................................................................... 5 D. Employment ................................................................................................................................ 7 E. Household Characteristics ........................................................................................................ 10 F. Special Needs Groups ............................................................................................................... 14 G. Housing Stock Characteristics ................................................................................................... 22 H. Summary of Regional Housing Needs ....................................................................................... 30 I. Fair Housing .............................................................................................................................. 31 3. Constraints on Housing Production ............................................................................................. 33 A. Physical Constraints .................................................................................................................. 33 B. Market Constraints ................................................................................................................... 36 C. Constraints to Housing for Persons with Disabilities ................................................................ 59 4. Housing Resources ..................................................................................................................... 62 A. Realistic Development Capacity ............................................................................................... 62 B. Active Development Projects .................................................................................................... 65 C. Vacant Land .............................................................................................................................. 66 D. Potential Housing Growth ........................................................................................................ 70 E. Potential Strategies ................................................................................................................... 70 F. Financial Resources ................................................................................................................... 71 G. Energy Conservation ................................................................................................................. 72 5. Housing Plan .............................................................................................................................. 75 A. Goals and Policies ..................................................................................................................... 75 B. Housing Programs ..................................................................................................................... 77 C. Quantified Objectives ............................................................................................................... 89 Appendices A Review of Rosemead 2014-2021 Housing Element B Public Participation C Sites Inventory D Fair Housing Assessment Rosemead 2021-2029 Housing Element iv  Table of Contents List of Tables Table 1 Local Population Trends: Rosemead and Surrounding Cities (1990-2019) ............................................ 6 Table 2 SCAG Population Projections: Rosemead and Los Angeles County (2020, 2035) .................................. 6 Table 3 Age Distribution: Rosemead (2010-2019) .............................................................................................. 7 Table 4 Race and Ethnicity Distribution: Rosemead (2000-2019) ...................................................................... 7 Table 5 Employment by Industry: Los Angeles County (2011, 2019) ................................................................. 8 Table 6 Employment by Industry: Rosemead (2011, 2019) ................................................................................ 8 Table 7 Average Hourly Wage by Industry: Los Angeles County (2019) ............................................................. 9 Table 8 Jobs/Housing Ratio: Rosemead and Los Angeles County (2012, 2019, 2020) ..................................... 10 Table 9 Household Characteristics: Rosemead (2010, 2019) ........................................................................... 10 Table 10 Household Size: Rosemead (2010, 2019) ............................................................................................. 11 Table 11 Households by Tenure Trends: Rosemead and Los Angeles County (2010, 2019) .............................. 12 Table 12 Households by Income Trends: Rosemead (2000, 2010, 2019) ........................................................... 12 Table 13 Household Income Distribution: Rosemead ........................................................................................ 13 Table 14 Income by Housing Problems: Rosemead ............................................................................................ 13 Table 15 Housing Needs for Extremely Low-Income Households by Tenure: Rosemead .................................. 13 Table 16 Summary of Special Needs Groups: Rosemead (2019, 2020) .............................................................. 14 Table 17 Elderly-Headed Households by Household Type and Tenure: Rosemead (2019) ................................ 14 Table 18 Disabled Persons by Age: Rosemead (2019) ........................................................................................ 16 Table 19 Disabled Persons by Age: Rosemead (2019) ........................................................................................ 16 Table 20 Developmental Disabilities: Rosemead ................................................................................................ 17 Table 21 Large Households: Rosemead .............................................................................................................. 19 Table 22 Large Households: Los Angeles County ................................................................................................ 19 Table 23 Locations of Homeless Persons: Rosemead (2020) ............................................................................. 20 Table 24 Housing Trends: Rosemead and Surrounding Jurisdictions (2010-2019) ............................................ 22 Table 25 Housing Units by Number of Units in Structure: Rosemead (2010-2019) ........................................... 22 Table 26 Occupancy Status by Tenure: Rosemead (2010-2019) ........................................................................ 23 Table 27 Age of Housing Stock: Rosemead (2019) ............................................................................................. 24 Table 28 Median Home Value: Rosemead and Surrounding Cities (2010, 2019) ............................................... 24 Table 29 Home Sales: Rosemead (May 2020-May 2021) ................................................................................... 25 Table 30 California Income Limits and Affordable Housing Costs ...................................................................... 26 Table 31 Median Monthly Rent: Rosemead and Surrounding Cities (2010, 2019) ............................................ 26 Table 32 Final FY 2021 and Final FY 2020 FMRs by Unit Bedrooms ................................................................... 26 Table 33 Housing Cost Burden Overview: Rosemead ......................................................................................... 27 Table 34 Cost Burden by Income Level and Tenure: Rosemead ......................................................................... 27 Table 35 Inventory of Publicly Assisted Units and Complexes: Rosemead (2019) ............................................. 29 Table 36 Regional Housing Needs Allocation: Rosemead (2021-2029) .............................................................. 31 Table 37 General Plan Residential Land Use Categories ..................................................................................... 42 Table 38 Land Use and Estimated Dwelling Units for General Plan Buildout: Residential Land Uses ................ 42 Table 39 Residential Development Standards .................................................................................................... 44 Table 40 Summary of Residential Permit Development Fees: Rosemead1 ........................................................ 51 Table 41 Estimated Street Construction Costs ................................................................................................... 53 Table 42 Residential Development Review and Processing Time Estimates ...................................................... 55 Table 43 Expected Densities of Residential Land ............................................................................................... 63 Table 44 Mixed-Use Project Proposals: Rosemead ............................................................................................ 64 Table 45 Income Categories and Assumed Density/Zone Ranges ...................................................................... 64 Table 46 ADU Affordability Methodology Applied to the City of Rosemead ...................................................... 70 Table 47 Housing Projections, 6th Cycle Housing Element Update: Rosemead .................................................. 71 Table 48 Rezoning for RHNA ............................................................................................................................... 81 Table 49 Fair Housing Program ........................................................................................................................... 87 Table 50 Quantified Objectives .......................................................................................................................... 90 List of Figures Figure 1 General Plan Land Use Designations .................................................................................................... 40 Rosemead 2021-2029 Housing Element Introduction  1 1. INTRODUCTION State law recognizes the vital role local governments play in the supply and affordability of housing. As such, the governing body of every local governmental entity in California is required to adopt a comprehensive long-term General Plan to oversee physical development within its jurisdictional boundaries. Housing Element law, enacted in 1969 as one of seven required elements of a General Plan, mandates that local governments adequately plan to meet the existing and projected housing needs of all economic segments of the community. The law acknowledges that, for the private market to adequately address housing needs and demand, local governments must adopt land use plans and regulatory systems that provide opportunities for, and do not unduly constrain, housing development. The law also requires the California Department of Housing and Community Development (HCD) to review local housing elements for compliance with State law and to report its written findings to the local government. A. Purpose of the Housing Element The City of Rosemead 2021-2029 Housing Element of the Rosemead General Plan (Housing Element) sets forth ongoing strategies to address the City’s housing needs. This includes the preservation and enhancement of the community’s residential character, the expansion of housing opportunities for all economic segments of the community, and the provision of guidance and direction for local government decision-making in all matters relating to housing. This Housing Element identifies housing strategies and programs that focus on: 1. Conserving and improving existing affordable housing; 2. Providing adequate housing sites; 3. Assisting in the development of affordable housing; 4. Removing governmental constraints to the development of housing; and 5. Promoting equal housing opportunities. B. Housing Element Contents Section 65583 of the California Government Code sets forth the following specific components to be analyzed in this Housing Element: 1. Population and employment trends; 2. The City’s fair share of the regional housing needs; 3. Household characteristics; 4. Suitable land for residential development; 5. Governmental and non-governmental constraints on the improvement, maintenance and development of housing; 6. Special housing needs; 7. Opportunities for energy conservation; and 8. Publicly assisted housing developments that may convert to non-assisted housing developments. The purpose of these requirements is to develop an understanding of the existing and projected housing needs within the community and to set forth policies and programs that promote the preservation, improvement, and development of diverse types and costs of housing throughout the community. Rosemead 2021-2029 Housing Element 2  Introduction A full list of all required Housing Element components and the locations of required information in this document is in Appendix A of this Housing Element. C. Organization This Housing Element extends through 2029 and complies with all requirements pursuant to §65583 of the California Government Code. This Housing Element consists of the following major components: Background Information (Chapter 2): This chapter describes the existing demographic, social and economic conditions and trends of the City of Rosemead. It provides information on population, employment, and housing, and describes special needs groups. It also provides an inventory of affordable housing units, and includes a summary of regional housing and fair housing needs. Constraints on Housing Production (Chapter 3): This chapter describes various constraints to providing affordable housing opportunities in Rosemead, including physical, market, governmental and regional, and constraints to housing opportunities for persons with disabilities. Housing Resources (Chapter 4): This chapter describes the resources available for providing affordable housing opportunities for all income groups in Rosemead, including inventories of vacant land and land suitable for recycling, identifying units at-risk of losing use restrictions, analyzing potential housing growth, and financial resources. Housing Plan (Chapter 5): This final chapter describes the housing goals and policies of the Housing Element and the programs to be implemented during the 2021-2029 planning period. Appendices: The appendices contain: A) review of the Rosemead 2013-2021 Housing Element: B) information on the City’s public outreach program; C) adequate sites inventory; and D) Affirmatively Furthering Fair Housing Assessment. D. Relationship to Other General Plan Elements State law requires that “…the general plan and elements and parts thereof comprise an integrated, internally consistent, and compatible statement of policies…” The purpose of requiring internal consistency is to avoid policy conflict and provide a clear policy guide for the future maintenance, improvement, and development of housing within the City. This Housing Element is part of the Rosemead General Plan. All elements of the General Plan have been reviewed for consistency and completed in coordination with this Housing Element. In addition, concurrent amendments to the Public Safety Element have been prepared as well as environmental justice policies added, pursuant to State law. The City will assume responsibility for maintaining consistency among this Housing Element and other General Plan elements. Upon future amendment to the General Plan, this Housing Element will be reviewed and modified, if necessary, to ensure continued consistency among elements. E. Community Participation Section 65583(c)(6)(B) of the California Government Code states that, “The local government shall make diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.” Opportunities for community members to provide input on housing issues and recommend strategies are critical to the development of appropriate and effective programs to address the City’s housing needs. Rosemead 2021-2029 Housing Element Introduction  3 The 6th Cycle Housing Element was developed through the combined efforts of City staff, the City Council, and the City’s consultant in consultation with the public. Involvement with the community was prioritized to fully understand their values and ideas for the future. Several opportunities were provided for community members and housing interest groups to express their input and weigh in on housing issues. Although in-person outreach was extremely limited due to COVID-19 constraints, meaningful ways to get involved in the Housing Element update process were provided through online engagement and virtual meetings. Outreach efforts were guided by use of a variety of strategies and activities as summarized in Appendix B, which also identifies how public input shaped the Housing Element. The City sought input from the general public pertaining to the formulation of this Housing Element update through a comprehensive program of public outreach, including the following components: • City website • Online Housing Needs Survey (Translated to Spanish, Chinese, and Vietnamese) • Stakeholder Interviews • Joint Study Session with Planning Commission and City Council • Community Workshop (Polling questions translated to Spanish, Chinese, and Vietnamese) • Public Hearings The Housing Element update was also informed by public input received for the 2021-2022 Annual Action Plan report to the U.S. Department of Housing and Urban Development (HUD) pertaining to the City’s Consolidated Plan (Con Plan). During the development of the Con Plan, the City solicited input from residents to identify and prioritize the various housing and community needs. Furthermore, the City consulted with local public and private service providers to assess the housing and community development needs of low- to moderate-income households and special needs households. The City consulted with the Los Angeles County Development Authority (LACDA, formerly the Los Angeles County Development Commission) and nonprofit organizations to determine funding needs for housing and services for homeless persons, low- to moderate-income persons, and low-income neighborhoods. Priority areas of need as determined from public participation and research for the Con Plan include: 1. Preserve the City’s existing affordable housing stock for low- and moderate-income (LMI) households in the 0 to 80 percent of Area Median Income (AMI) category1; 2. Promote, increase, maintain homeownership for LMI households; 3. Provide safe, affordable, decent housing for LMI renters; 4. Assist with energy efficient improvements; 5. Provide supportive services for non-homeless persons with special needs; and 6. Promote fair housing among all income categories. In addition, as required by California Government Code §65589.7, upon the adoption of this Housing Element, the City of Rosemead shall distribute a copy of the Housing Element to the area water and sewer providers, along with information that the providers must have adopted written policies and procedures that grant a priority for service hook-ups to developments that help meet the community’s share of the regional need for lower-income housing. Water service providers include Adams Ranch Mutual Water Company, San Gabriel County Water District, Golden State Water Company, Amarillo Mutual Water District, San Gabriel Valley Water Company, Upper San Gabriel Valley Municipal Water 1 HUD housing and community development programs define moderate income as households making up to 80 percent of AMI. This moderate income is equivalent to the low income level under State law for Housing Element purposes. Rosemead 2021-2029 Housing Element 4  Introduction District, and the Metropolitan Water District. Sewer service is provided by the County Sanitation Districts of Los Angeles County. F. Source of Information In preparing the 2021-2029 Housing Element, various sources of information were consulted. The following are a few of the key sources used to update the Housing Element: • U.S. Census Bureau: 2019 American Community Survey (ACS). • U.S. Department of Housing and Urban Development (HUD): Comprehensive Housing Affordability Strategy (CHAS), 2012-2016 and 2013-2017 data. • Southern California Association of Governments (SCAG): Connect SoCal (2020-2045 Regional Transportation Plan/Sustainable Communities Strategy), and the 2021-2029 Regional Housing Needs Assessment (RHNA) • SCAG Pre-Certified Local Housing Data Report (2020) (SCAG Report): The SCAG Report references: American Community Survey (ACS) 2014-2018 5-year estimates (from the U.S. Census Bureau); the California Department of Finance (DOF) Population and Housing Unit Estimates; CHAS 2012-2016; the California Department of Developmental Services; and SCAG Local Profiles including Construction Industry Research Board (CIRB) and Core Logic/DataQuick. Because the SCAG Report uses 2018 ACS data and 2016 CHAS data, totals vary from citations that use 2019 ACS and 2017 CHAS data. In most respects, the totals are not as significant as the trends illustrated in the data collected. • State Department of Finance (DOF) and the State Employment Development Department (EDD): Estimates used to update population and demographic data. • Housing market information, such as home sales, rents, vacancies, and land costs are updated by property tax assessors’ files, internet sources listing sales and rent data, and interviews with the local real estate community, and through rental data collected by the City. • City of Rosemead: Analysis of Impediments to Fair Housing Choice (2020) Consolidated Plan, Action Plan, and the Consolidated Annual Performance and Evaluation Report (CAPER) for City housing program, and the General Plan and Municipal Code. • Consultation with local and county service agencies for information on special needs populations, the services available to them, and the gaps in the system. The data collected by various sources and utilized in the preparation of this document may reflect totals that are not identical due to different reporting periods. In addition, totals are rounded to the nearest tenth. Rosemead 2021-2029 Housing Element Background Information  5 2. BACKGROUND INFORMATION A. Housing Needs Assessment This section of the Housing Element discusses the characteristics of the City’s population and housing stock as a means of better understanding the nature and extent of unmet housing needs. This section includes demographic profiles and projections, descriptions of housing stock characteristics, and a summary of regional housing needs. These descriptions provide a foundation upon which decisions regarding programs and policies for the provision of adequate housing in the City can be based. B. Market Setting Located in the San Gabriel Valley in east-central Los Angeles County, Rosemead incorporated as a city in 1959, with a population of 15,476. According to the 2019 American Community Survey, the City’s population is 54,282. Rosemead functions as a residential suburb for surrounding employment centers; the majority of existing development consists of low-density housing. Despite being home to Southern California Edison, the City has experienced relatively slow economic growth. According to the State Employment Development Department (EDD), as of February 2021, the City’s unemployment rate was 10.88 percent, which was slightly below the County average of 10.99 percent. Overall, median household income in Rosemead continues to be lower, and the number of low-income residents continues to be higher, than County averages. As of 2020, according to California Department of Finance (DOF) estimates, there were an estimated 15,059 dwelling units in the City. With relatively affordable housing prices and rental rates and a variety of housing options, Rosemead offers housing opportunities to its residents with widely varying incomes. While Rosemead has a range of affordable housing options, there is still a need for affordable units with three or more bedrooms to accommodate large families. At the same time, the City is almost completely built-out, and opportunities for larger-scale housing developments are limited. Thus, most of Rosemead’s recent housing growth has come in the form of smaller infill projects located within established neighborhoods and oriented toward moderate- and above moderate-income households. In light of these conditions and trends, the City is focused on providing a diversity of housing options by: • Encouraging infill development and recycling of underutilized land; • Encouraging housing production through mixed-use development; • Expanding homeownership; and • Maintaining and upgrading the existing housing stock. C. Demographic Profile The housing needs of a community are generally predicated on local demographics; predictably, changing conditions (e.g., population, age, income) can impact these needs. Identifying demographic trends during the planning stages of housing programs and policies is a critical component in ensuring that the community’s future housing stock meets the needs of all local population segments. Significant population growth in the San Gabriel Valley occurred prior to 1990; however, since that time the region has seen more modest growth in population. In Rosemead, population growth is close to average compared to neighboring cities in the San Gabriel Valley. The region overall saw an increase in Rosemead 2021-2029 Housing Element 6  Background Information population of 4.64 percent across 1980 to 2019. Population growth trends between 1990 and 2019 in Rosemead and surrounding cities are presented in Table 1 below. Table 1 Local Population Trends: Rosemead and Surrounding Cities (1990-2019) City Population 1990 2000 2010 2019 Change 1990 to 2019 Actual Present Rosemead 51,638 53,505 53,764 54,282 2,644 5.12% Alhambra 82,087 85,804 83,089 83,732 1,645 2.00% El Monte 106,162 115,965 113,475 115,477 9,315 8.77% Montebello 59,564 62,150 62,500 62,742 3,178 5.34% Monterey Park 60,738 60,051 60,269 60,439 -299 0.49% San Gabriel 37,120 39,084 39,718 40,143 3,023 8.14% South El Monte 20,850 21,144 20,116 20,721 -129 0.62% Total 418,159 437,703 432,931 437,536 419,377 4.64% Source: 1990-2010 U.S. Census, 2019 American Community Survey According to the 2012-2035 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) prepared by the Southern California Association of Governments (SCAG) and presented in Table 2, population in Rosemead is projected to increase modestly to 58,100 by 2035. Overall, the amount of growth anticipated by 2035 represents a 4.7 percent increase over the City’s 2020 population. These projections are based on regionwide trends throughout southern California and appear to assume the continued eastward migration of residents from Los Angeles and Orange counties to Riverside and San Bernardino counties. Table 2 SCAG Population Projections: Rosemead and Los Angeles County (2020, 2035) 2020 2035 Rosemead 55,500 58,100 Los Angeles County 10,404,100 11,353,300 Source: 2012-2035 SCAG RTP/SCS Age Characteristics As presented in Table 3, the City’s population is aging. In 2010, the age group under 20 years represented 25.5 percent of the City’s total population, but by 2019 the same age group declined to 22.1 percent of the population. During the same period, Rosemead’s seniors (the population of 65 and above) increased from 12.9 percent to 16.9 percent, which, according to SCAG, is higher than the regional share of 13 percent. These changes result in the median age of the City’s population increasing from 38.1 years in 2000 to 41.9 years in 2019. The median age of residents in Rosemead will likely continue to increase during this Housing Element period as the Baby Boom generation ages, which means that the City will experience an increased demand for senior housing. Rosemead 2021-2029 Housing Element Background Information  7 Table 3 Age Distribution: Rosemead (2010-2019) Age Group 2010 2019 Number Percent Number Percent Younger than 5 years 2,909 5.4% 3287 6.1 5-14 years 6,932 12.9% 5278 9.7 15-19 years 3,859 7.2% 3424 6.3 20-24 years 3,756 7.0% 3504 6.5 25-34 years 7,091 31.2% 7459 13.7 35-44 years 7,861 14.6% 6400 11.8 45-54 years 8,059 15.0% 7974 14.7 55-64 years 6,333 11.8% 7807 14.4 65-74 years 3,611 6.7% 4924 9.1 75-84 years 2,472 4.6% 2708 5.0 85 years and older 881 1.6% 1517 2.8 Total 53,764 100.0% 54,282 100.1% Median age 38.1 years 41.9 Source: 2010 U.S. Census, 2019 ACS 5-Year Estimates Race and Ethnicity The City’s racial/ethnic composition has shifted over the past several decades. Following a trend that began in the 1990s, the proportion of White community members has been decreasing in the City, accompanied by an increase in other racial/ethnic groups, primarily Asian and Hispanic/Latino community members. This trend can be seen in Table 4 below, which compares data from the 2000 and 2010 census data with data from the 2019 American Community Survey. Table 4 Race and Ethnicity Distribution: Rosemead (2000-2019) Race/Ethnicity 2000 2010 2019 Percent Change (2010 to 2019) Number % of Total White, Non-Hispanic 4,295 2,549 2,216 4.1% -15% Black, Non-Hispanic 262 176 270 0.5% -53% Native American, Non-Hispanic 112 56 378 0.7% +85% Asian, Non-Hispanic 25,988 32,439 33,353 61.7% +2.8% Other, Non-Hispanic 751 397 0 0.0% -100% Hispanic/Latino (of any race) 22,097 18,147 17,623 32.6% +2.9% Total 53,505 53,764 53,840 99.6 +0.14% Source: 2000-2010 U.S. Census, 2019 American Community Survey D. Employment An assessment of employment characteristics held by community residents provides insight into potential earning power and the segment of the housing market into which they fall. Information regarding the manner in which the employment base of the community is growing or otherwise changing may be critical in identifying potential housing demand changes in the future. Employment by Industry According to American Community Survey data presented in Table 5, the number of employed residents in Los Angeles County totaled approximately 5.25 million persons in 2019. The four largest employment industries in the County were Educational, Health, and Social Services (20.7%); Professional, Scientific, Management, Administrative, Waste Management Services (13.2%); Retail Trade (10.2%); and Manufacturing (9.3%). Combined, these industries accounted for 53.4 percent of those employed in the County. Rosemead 2021-2029 Housing Element 8  Background Information Table 5 Employment by Industry: Los Angeles County (2011, 2019) Industry 2011 2019 Number Percent Number Percent Agriculture, forestry, fishing and hunting, mining 23,297 0.5% 22,103 0.4% Construction 253,062 5.7% 292,507 5.9% Manufacturing 483,897 10.9% 457,164 9.3% Wholesale trade 161,153 3.6% 165,094 3.3% Retail trade 469,379 10.6% 501,902 10.2% Transportation and warehousing, utilities 230,836 5.2% 299,395 6.1% Information 191,136 4.3% 219,495 4.5% Finance, insurance, real estate, and rental leasing 286,073 6.4% 296,339 6.0% Professional, scientific, management, administrative, waste management services 545,083 12.3% 649,795 13.2% Educational, health, social services 919,453 20.7% 1,021,009 20.7% Arts, entertainment, recreation, accommodation, food services 444,134 10.0% 555,779 11.3% Other services (except public administration) 275,386 6.2% 288,015 5.8% Public administration 155,569 3.5% 161,266 3.3% Sources: 2011 and 2019 American Community Survey As shown in Table 6, the predominant employment industries for Rosemead residents are Educational, Health and Social Services (19.3%); Manufacturing (12.0%); and Arts, Entertainment, Recreation, Accommodation, and Food Services (11.9%). Overall employment rose by approximately 12 percent from 2000 to 2011. Manufacturing employment experienced the largest decline of any industry during this time, dropping by more than one-third. The Public Administration and Other Services categories had numerically small, but proportionately large, gains in employment (more than 100% in both cases). Gains of more than 20 percent were also observed in the Retail Trade (22.0%), and Arts, Entertainment, Recreation, Accommodation, and Food Services (22.3%) categories. Over 87 percent of employed residents drive to work, with an average commute of about 27 minutes, suggesting that most are employed outside of Rosemead but within Los Angeles County. Table 6 Employment by Industry: Rosemead (2011, 2019) Industry 2011 2019 Change 2011-2019 Number Percent Number Percent Percent Agriculture, forestry, fishing/hunting, mining 44 0.2% 87 0.3% 97.8% Construction 879 3.9% 1,469 5.8% 67.1% Manufacturing 2,969 13.1% 3,023 12.0% 1.8% Wholesale Trade 1,196 5.3% 1,031 4.1% -13.8% Retail Trade 2,903 12.8% 2,709 10.8% -6.7% Transportation and warehousing, utilities 1,030 4.5% 1,520 6.0% 47.6% Information 389 1.7% 625 2.5% 60.7% Finance, insurance, real estate, rental leasing 1,382 6.1% 1,628 6.5% 17.8% Professional, scientific, management, administrative, waste management services 1,660 7.3% 2,147 8.5% 29.3% Educational, health, social services 3,907 17.2% 4,854 19.3% 24.2% Arts, entertainment, recreation, accommodation, food services 2,687 11.8% 2,987 11.9% 11.2% Other services (except public administration) 2,215 9.8% 2,101 8.3% -5.1% Public administration 1,436 6.3% 992 3.9% -30.1% Sources: 2011 and 2019 American Community Survey Rosemead 2021-2029 Housing Element Background Information  9 Table 7 presents the 2019 wages by key industries for Los Angeles County. It shows that the three highest average hourly wages countywide by industry were business and financial operations ($64.75), educational instruction and libraries ($63.86), and life, physical, and social sciences ($48.11). Table 7 Average Hourly Wage by Industry: Los Angeles County (2019) Industry Average Hourly Wage Management $28.74 Business and financial operations $64.75 Computer and mathematical $39.41 Architecture and engineering $47.23 Life, physical, and social science $48.11 Community and social service $42.73 Legal $28.62 Educational instruction and library $63.86 Arts, design, entertainment, sports, and media $33.65 Healthcare practitioners and technical $40.01 Healthcare support $47.43 Protective service $15.61 Food preparation and serving related $29.02 Building and grounds cleaning and maintenance $14.36 Personal care and service $17.16 Sales and related $16.48 Office and administrative support $22.31 Farming, fishing, and forestry $21.81 Construction and extraction $16.34 Installation, maintenance, and repair $28.94 Production $26.75 Transportation and material moving $18.98 Average $32.37 Source: U.S. Bureau of Labor Statistics, 2019 Jobs/Housing Balance The “jobs-to-housing balance” compares a community’s employment opportunities with housing needs of its residents. There is no standard ratio for this balance; however, the City aims to provide enough housing to meet the demands of the job opportunities in the City and vice versa. As shown in Table 8 below, a comparison between the number of employed persons in Rosemead in 2012 (22,000) and the number of dwellings in the City at that time (14,863), reveals a 1.5 jobs-housing ratio, which exceeded the County’s 1.41 ratio. The fact that the City’s ratio exceeds 1.0 indicates that Rosemead continues to generate more jobs than housing opportunities, which is reflective of the City’s stature as an employment center in the San Gabriel Valley. However, a significant number of the moderate and upper income employees who work in Rosemead live outside the City. The City would like to encourage these workers to remain in the City by providing more housing options to meet their needs through the new overlay zones and specific plan area creating new opportunities for a range of mixed use and multi-family homes. The built-out nature of the City is a constraint to developing new single-family detached housing. Employment in the City steadily increased during the early and mid-2010s, before declining during the COVID-19 pandemic. The long-term trend is nonetheless one of growth, which in turn can generate demand for housing. As employers in the City offer a variety of wage types, the City should continue to Rosemead 2021-2029 Housing Element 10  Background Information accommodate a wide range of housing options that suit the needs of wage earners, such as single room occupancy units, apartments, and large and small attached and detached single-family homes. Table 8 Jobs/Housing Ratio: Rosemead and Los Angeles County (2012, 2019, 2020) 2012 2019 2020 Percent change (2012-2020) Rosemead Jobs 22,000 24,300 21,300 - 0.03% Housing 14,863 14,964 15,059 +1.31% Jobs/Housing Ratio 1.50 1.62 1.41 – Los Angeles County Jobs 4,365,700 4,888,600 4,291,700 +1.69% Housing 3,454,131 3,568,900 3,590,574 +3.95% Jobs/Housing Ratio 1.27 1.37 1.20 – Sources: EDD (employment) and DOF (housing) E. Household Characteristics Household type and size, income levels, and the presence of special needs populations affect the housing needs of a community. This section details various household characteristics that affect housing needs in Rosemead. Household Type A household is defined as all persons living in a housing unit. The U.S. Census defines a family as “a group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together; all such people (including related subfamily members) are considered as members of one family.” “Other” households are unrelated people residing in the same dwelling unit. Group quarters, such as dormitories or convalescent facilities, are not considered households. Rosemead remains a predominantly family-oriented City with 88 percent of its households comprising families. The remaining 16 percent of households in the City are categorized as “Non- Family Households,” which consist of householders living alone (12 percent), or individuals not related by blood or marriage sharing a housing unit (4 percent). Between 2000 and 2010, the number of Family Households as a percentage of total households in the City increased. Household characteristics in Rosemead are shown in Table 9 below. See also “Definition of Family” (Section 3.C) for the City’s definition of family for purposes of zoning, which does not differentiate between related and unrelated individuals living together. Table 9 Household Characteristics: Rosemead (2010, 2019) Percent (2010) Percent (2019) Difference (2010-2019) Family (total) 81.8% 88% 6.2% Married-Couple 57.2% 61% 3.8% Other family 24.5% 27% 2.5% Nonfamily 18.2% 16% -1.8% Alone 14.4% 12% -2.2% Not alone 3.8% 4% 0.2% Source: 2010, 2019 American Community Survey Rosemead 2021-2029 Housing Element Background Information  11 Household Size Household size is an important indicator identifying sources of population growth and may be a sign of overcrowding in individual housing units (depending on the number of bedrooms). A city’s average household size will increase over time if trends move toward larger families. In communities where the population is aging, the average household size typically declines. As shown in Table 10, the most commonly occurring household size in Rosemead is two people (24.7 percent). However, when combined, households of four to seven or more people make up 43.8 percent of the total households. This figure (43.8 percent) is down slightly from the 2010 estimate of 45.9 percent. The percent of households with four or more people is much higher in Rosemead than the county overall (29.3 percent in 2019), which generally reflects a community where families with children represent a larger component of the population. Growth trends in the City can be attributed to cultural differences in relation to household size, privacy, and cohabitation of extended families. A gradual decrease in household size in the City will result in slightly lower demand for large units than in years past, though still significantly higher than in both the County and the State as a whole. However, it is not expected that construction will keep pace with demand, because the City is, for the most part, built out. Table 10 Household Size: Rosemead (2010, 2019) Location 2010 2019 Rosemead 1-person household 14.4% 11.3% 2-person household 20.4% 24.7% 3-person household 19.2% 20.1% 4-or-more-person household 45.9% 43.8% Los Angeles County 1-person household 25.6% 25.6% 2-person household 27.1% 28% 3-person household 16.4% 16.8% 4-or-more-person household 31.0% 29.3% Source: 2010, 2019 American Community Survey Tenure Housing tenure refers to whether a housing unit is owner-occupied, renter-occupied, or vacant. Tenure is an important indicator of the housing climate of a community, because it reflects the relative cost of housing opportunities and the ability of residents to afford housing. Tenure also influences residential mobility, with owner-occupied units generally evidencing lower turnover rates than renter-occupied units. In 2019, according to American Community Survey data, slightly more than half of Rosemead households were renter-occupied, a continuation of the tenure breakdown observed in the City in previous decades. Renters also outnumber owners in Los Angeles County as a whole; with a slightly higher proportion of renters in the County than in the City (54.6 percent vs. 51.7 percent, respectively). The shift from majority owner-occupied to majority renter-occupied has been occurring gradually and can be seen especially in the last decade. Trends in housing tenure for the City and the County are shown in Table 11. Rosemead 2021-2029 Housing Element 12  Background Information Table 11 Households by Tenure Trends: Rosemead and Los Angeles County (2010, 2019) Location 2010 2019 Number Percent Number Percent Rosemead Owner 7,378 51.0% 6,982 48.3% Renter 7,086 49.0% 7,473 51.7% Los Angeles County Owner 1,552,091 48.2% 1,511,628 45.4% Renter 1,665,798 51.8% 1,816,770 54.6% Source: 2010, 2019 American Community Survey Household Income Household income continues to be among the most important factors affecting housing opportunity and determining a household’s ability to balance housing costs with other basic necessities. In the last two decades, the proportion of Rosemead residents in lower income groups has decreased, while the proportion of residents in higher income groups has increased. As shown in Table 12, percent of residents earning less than $15,000 per year has decreased by 9 percent from 2000 to 2019. At the same time, the percent of residents earning more than $150,000 per year increased by 7.7 percent over the same period. Median household income in the City increased by approximately 60.3 percent during this period, closely tracking the trend in the County as a whole (61.2 percent) – but continued to be lower than the County median income. Table 12 Households by Income Trends: Rosemead (2000, 2010, 2019) Income Group 2000 2010 2019 Number Percent Number Percent Number Percent Less than 15,000 2,368 17.0% 1,484 10.3% 1,159 8.0% $15,000 to $24,999 2,427 17.4% 1,766 12.2% 1,658 11.5% $25,000 to $34,999 1,877 13.6% 1,678 11.6% 1,427 9.9% $35,000 to $49,999 2,402 17.1% 2,855 19.7% 2,073 14.3% $50,000 to $74,999 2,640 19.0% 2,901 20.1% 2,934 20.3% $75,000 to $99,999 1,186 8.5% 1,541 10.7% 1,696 11.7% $100,000 to $150,000 768 5.5% 1,618 11.2% 2,122 14.7% Greater than $150,000 252 1.9% 621 4.3% 1,386 9.6% Total 13,930 100.0% 14,464 100.1% 14,455 100.0% Median Income $36,181 $46,706 $57,999 County Median Income $42,189 $55,476 $68,044 Source: 2000 U.S. Census; 2010, 2019 American Community Survey HUD CHAS data (Comprehensive Housing Affordability Strategy) demonstrate the extent of housing problems and housing needs, particularly for low-income households. As shown on Table 13, the 2013- 2017 CHAS data shows that 3,595 households in Rosemead are extremely low income, which represents 24.5 percent of the City’s households. Extremely-low-income households represent the highest need group in terms of affordable housing, because the greatest subsidies are needed to make housing affordable for this group. Rosemead 2021-2029 Housing Element Background Information  13 Table 13 Household Income Distribution: Rosemead Income Group Estimated Households Percent of Total Extremely Low (<=30% of HAMFI) 3,595 24.5% Very Low (>30% to <= 50% HAMFI) 2,635 18.0% Low (>50% to <=80% HAMFI) 3,215 21.9% >80% to <=100%HAMFI 1,565 10.7% >100% HAMFI 3,660 24.9% Total 14,670 100.0% Source: HUD CHAS 2013-2017. HAMFI refers to Housing Urban Development Area Median Family Income As shown in Table 14, CHAS data also reports that 64.5 percent (2,320) of the City’s extremely-low- income households have at least one of four housing problems (incomplete kitchen facilities, incomplete plumbing facilities, more than one person per room, and cost burden greater than 30 percent). Moreover, 89.6 percent of extremely low-income renters and 68.2 percent of extremely low-income owners experienced at least one of four housing problems, as show in Table 15. To assist lower income residents, Programs 3, 6 and 9 focus on providing additional opportunities for new affordable housing, and Programs 1, 2, and 10 addresses direct assistance to renters and owners. In addition, Program 14 includes meaningful actions to increase access to opportunity and reduce displacement. Table 14 Income by Housing Problems: Rosemead Household has at least 1 of 4 Housing Problems Household has none of 4 Housing Problems Cost Burden not available - no other housing problems Total Household Income <= 30% HAMFI 2,985 475 135 3,595 Household Income >30% to <=50% HAMFI 1,845 795 0 2,635 Household Income >50% to <=80% HAMFI 2,185 1,030 0 3,215 Household Income >80% to <=100% HAMFI 665 900 0 1,565 Household Income >100% HAMFI 705 2,960 0 3,660 Total 8,375 6,155 135 14,670 Source: HUD CHAS 2013-2017 Table 15 Housing Needs for Extremely Low-Income Households by Tenure: Rosemead Renters Owners Total Total Number of ELI Households 2,620 975 3,595 Percent with Any Housing Problems 89.6 68.2% 83.0% Percent with Cost Burden (30% of income) 87.7% 66.6% 82.1% Percent with Severe Cost Burden (50% of income) 71.8% 44.1% 64.9% Total Number of Households 7,405 7,265 14,670 Source: HUD CHAS 2013-2017. More information on income levels is found in the SCAG Pre-Certified Local Housing Data Report (SCAG Report), which states that 11.4 percent of Rosemead’s households are experiencing poverty, compared to 7.9 percent of households in the SCAG region. Poverty thresholds vary by household type. In 2018, a single individual under age 65 was considered in poverty with an income below $13,064 per year, while the threshold for a family consisting of two adults and two children was $25,465 per year. Rosemead 2021-2029 Housing Element 14  Background Information F. Special Needs Groups State law recognizes that certain households may have more difficulty finding decent and affordable housing due to special circumstances. For the purposes of this Housing Element, special needs populations are defined as: elderly, persons with disabilities, large households, female-headed households, farmworkers, and the homeless. The number of special needs households and/or persons with disabilities in Rosemead is summarized in Table 16. Table 16 Summary of Special Needs Groups: Rosemead (2019, 2020) Group Number Percent of Total Elderly Residents (65 years and over) 9,149 16.9% Persons with Disability 4,904 9.1% Large Households (5 or more persons) 3,248 22.1 % Female-Headed Households 2,383 16.5% Farmworkers 87 0.3% Homeless 79 0.15% Source: 2019 American Community Survey, 2020 Los Angeles Homeless Services Authority (LAHSA) Homeless Count by Community/City Elderly Federal housing data define a household type as “elderly family” if it consists of two persons with either or both age 62 or over. The SCAG Report, using 2012-2016 CHAS data, reports that 40.4 percent of Rosemead’s elderly households earn less than 30 percent of the surrounding area income (compared to 24.2 percent in the SCAG region) and 62.4 percent earn less than 50 percent of the surrounding area income (compared to 30.9 percent in the SCAG region). When considering housing Rosemead’s elderly population, there are four primary concerns: 1. Income: Typically retired and living on a fixed income; 2. Health Care: Typically affected by higher rates of illness and dependency; therefore, health care and supportive housing are vital; 3. Transportation: Many use public transit and/or have disabilities that require special assistance for mobility; and 4. Housing: Typically live alone and/or in rental units. The share of elderly persons in Rosemead has been steadily increasing. As presented in Table 16 above, in 2019 this segment of the population numbered 9,149 persons, representing 16.9 percent of the total population. Table 17 shows that in 2019 there were 3,470 elderly-headed households. It also shows that 2,133 were owner-occupied units (61.5 percent) and 1,337 were renters (38.5 percent). In 2019, 75.0 percent of the elderly-headed households were living in family households, which are defined as a householder living with one or more persons related by birth, marriage, or adoption. The remaining 25.0 percent of the elderly-headed households live in non-family households, such as a non- relative roommate or living alone, or in group quarters (e.g., nursing homes). Table 17 Elderly-Headed Households by Household Type and Tenure: Rosemead (2019) Household Type Owner Renter Total Number Percent Number Percent Number Percent Family 1,566 60.1% 1,038 39.9% 2,604 100.0% Non-family 567 65.4% 299 34.6% 866 100.0% Total 2,133 61.5% 1,337 38.5% 3,470 100.0% Source: 2019 American Community Survey Rosemead 2021-2029 Housing Element Background Information  15 Resources Many organizations and facilities provide services to the elderly throughout the County. The City intends to support the activities of these entities as critical partners who help respond to the housing and service needs of low-income special needs populations. It is also the City’s intention to support the efforts of nonprofit agencies that apply for funding to locate housing facilities that serve persons with special needs within the City. The list below identifies the organizations that offer services to the elderly and frail elderly of Rosemead and the types of services provided: • Angelus/Garvey Senior Housing: Two apartment complexes in Rosemead are currently rented exclusively by low-income seniors (Angelus and Garvey Senior Apartments). There is a single waiting list for both senior apartment complexes. Angelus Senior Apartments is made up of 50 one-bedroom units and 1 two-bedroom unit, while Garvey Senior Apartments contains 64 one-bedroom and 8 two-bedroom units. In addition, the California Mission Inn is an assisted living facility for seniors and disabled individuals. • Congregate Meal Program for the Elderly: This service, which is sponsored by Volunteer Center of San Gabriel Valley, provides low-cost, nutritious meals to persons who are 60 years and older. • Dial-A-Ride and Rosemead Explorer: The City offers a Dial-A-Ride service for Rosemead residents who are 55 years or older or have disabilities. For 50 cents each way, Dial-A-Ride customers can schedule a personalized service to travel anywhere within a 5-mile radius of the City of Rosemead. The Rosemead Explorer operates fixed-route services Monday through Friday from 5:00 a.m. to 8:00 p.m. The Rosemead Explorer offers affordable transportation throughout the City for the convenience of residents of all ages. Seniors and disabled persons who have a Rosemead Transit ID ride for free. • Owner-Occupied Rehabilitation Programs: Senior residents who own their own homes may apply to any of the four programs offered by the City that provide financial assistance in making needed repairs and upgrades. These programs are available to lower-income (0 to 80 percent of area median) homeowners, and take the form of loans, grants, emergency grants, and rebates. In particular, the grant program is reserved exclusively for disabled residents and seniors 62 and older, and interest on loans is calculated at zero percent for seniors and disabled residents. • Senior Nutrition Program: The program provides high quality, cost efficient, but nutritious meals at the Garvey Community Center to seniors living in Rosemead and promotes the role of nutrition in preventive health and long-term care. • Vietnamese American Senior Association: The Vietnamese American Senior Association is designed to help Vietnamese seniors lead a happy and independent life by making sure that they have access to healthcare, social service, and recreational resources that they otherwise may not have access to due to language barriers. • Down Payment Assistance Program: The City has funds available to assist low-income residents, including the elderly, with the purchase of their first home. The amount of the loan will vary depending on the value of the home to be purchased, with the objective being to assist the homebuyer in making a maximum 20 percent down payment. The maximum allowable loan is currently $70,000, but the City is anticipating increasing the maximum loan amount in the next fiscal year. • Section 8 Rental Assistance Program: This program, which is administered by the Los Angeles County Development Authority (LACDA), assists low-income persons and households, including the elderly and frail elderly, in making rents affordable. Rosemead 2021-2029 Housing Element 16  Background Information Persons with Disabilities A disability is defined as a long-lasting condition that impairs an individual’s mobility, ability to work, or ability to provide self-care. Persons with disabilities include those who suffer from physical, mental, or emotional disorders. Disabled persons typically have special housing needs because of fixed incomes, shortage of affordable and accessible housing, and higher health costs associated with their disability. Disability data provides valuable context for assessing current and future need for accessible housing units. Because some disability types are not recorded for children below a certain age, calculating disability as a percentage of total population may not be accurate. In addition, some individuals may have more than one disability. Table 18 Disabled Persons by Age: Rosemead (2019) Group Number Percent of Total Residents in Age Group Under 5 years 0 0.0% Ages 5 to 17 124 1.7% Ages 18 to 34 353 2.9% Ages 35 to 64 1,461 6.6% Ages 65 to 74 1,014 20.7% 75 years and over 1,952 46.9% Source: 2019 American Community Survey As presented in Table 19, 22.3 percent of elderly residents in Rosemead had an ambulatory (i.e., walking) difficulty, and 12.5 percent had a self-care disability. Additionally, Table 19 shows that 20.8 percent of elderly residents had a disability related to an independent living difficulty. This proportion does not include elderly residents in skilled nursing or other related facilities. These elderly individuals may need some type of assisted living or residential care facility. Table 19 Disabled Persons by Age: Rosemead (2019) Disability Age Group 5-64 65 and older Number Percent Number Percent Hearing disability 307 0.9% 942 10.4% Vision disability 410 1.2% 429 4.7% Cognitive disability 909 2.2% 1,133 12.5% Ambulatory difficulty 725 1.7% 2,022 22.3% Self-care difficulty 440 1.1% 1,127 12.5% Independent living difficulty 812 2.4% 1,881 20.8% Source: 2019 American Community Survey The California Department of Developmental Services (DDS) provides data on developmental disabilities by age and type of residence, as shown on Table 20. These data are collected at the ZIP-code level and were joined to the jurisdiction-level by SCAG. State law defines “developmental disability” as a severe, chronic disability of an individual that: • Is attributable to a mental or physical impairment or combination of mental and physical impairments; • Is manifested before the individual attains age 18; Rosemead 2021-2029 Housing Element Background Information  17 • Is likely to continue indefinitely; • Results in substantial functional limitations in three or more of the following areas of major life activity: a) self-care; b) receptive and expressive language; c) learning; d) mobility; e) self-direction; f) capacity for independent living; or g) economic self-sufficiency; • Reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. Table 20 Developmental Disabilities: Rosemead By Residence Number Home of parent/family/guardian 496 Independent/supported living 15 Community care facility 33 Intermediate care facility 0 Foster/family home 5 Other 5 By Age 0-17 years 554 18+ years 294 Total 1,402 Source: SCAG Report. Totals may not match as counts below 11 individuals are unavailable and some entries were not matched to a ZIP code necessitating approximation. CA DDS consumer count by California ZIP, age group, and residence type for the end of June 2019. Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult. DDS currently provides community-based services to approximately 350,000 persons with developmental disabilities and their families through a statewide system of 21 regional centers and State-operated facilities. The East Los Angeles Regional Center (ELARC) is one of 21 regional centers in the State of California that provide a point of entry to services for people with developmental disabilities. The center is a nonprofit organization that works in partnership with the State to offer a wide range of services to individuals with developmental disabilities and their families. A number of housing types are appropriate for people living with a development disability: rent-subsidized homes, licensed and unlicensed single-family homes, housing choice vouchers, special programs for home purchase, HUD housing, and specialized homes (originally piloted under SB 962 in 2005). The design of housing-accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving this need group. Approximately 98 percent of the City’s affordable housing units are reserved for seniors, who are more likely than the general population to have a disability of some kind, whether physical or mental. Incorporating “barrier-free” design in all new multifamily housing (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for disabled residents. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income. Rosemead 2021-2029 Housing Element 18  Background Information Resources To assist in the housing needs for persons with developmental disabilities, the City will implement programs to coordinate housing activities and outreach with ELARC, encourage housing providers to designate a portion of new affordable housing developments for persons with disabilities, especially persons with developmental disabilities, and pursue funding sources designated for persons with special needs and disabilities (see Program 9 and Program 14). In addition, the City offered several rehabilitation programs to disabled residents who own and occupy their home. As stated in the City’s CAPER, these programs include grants, emergency grants, rebates, and deferred loans. Eligible improvements include retrofit activities to help with a person's needs (see Program 1). The City allows group homes, and there is no specific siting requirement between group homes. In addition. Program 9 calls for review of the Zoning Code for provisions for large group homes (7+ persons) and to develop mitigating strategies if needed to remove potential constraints and facilitate development of large group homes. The City is dedicated to accommodating the needs of disabled persons and therefore supports all residential care facilities in Rosemead. The organizations and facilities listed below offer services to persons with physical and/or mental disabilities who reside in the City of Rosemead include: • Community Advocates for People’s Choice; • Congregate Meal Program for the Disabled; • Intercommunity Blind Center; • California Mission Inn assisted living facility for seniors and the disabled; • Intercommunity Child Guidance Center; • Dial-A-Ride; • Metro Access; and • Southern California Rehabilitation Services. Female-Headed Households Statute requires analysis of specialized housing needs, including female-headed households, in an effort to ensure adequate childcare or job training services. The SCAG Report found that of Rosemead’s 14,712 total households (using 2018 ACS data), 17.3 percent are female-headed (compared to 14.3 percent in the SCAG region), 7 percent are female-headed and with children (compared to 6.6 percent in the SCAG region), and 1.2 percent are female-headed and with children under 6 (compared to 1.0 percent in the SCAG region). Female-headed households with children, in particular, tend to have lower incomes that limit their housing options and access to supportive services. SCAG estimates that 617 female-headed households in the City are experiencing poverty. Of these, 436 are estimated to have children. Resources The YWCA-Wings organization offers services to female-headed households who reside in Rosemead. It provides emergency shelter for women and children who become homeless due to domestic violence. Services include 24-hour access to emergency housing and crisis hotline, food and basic personal items, crisis support and advocacy, counseling and support groups, medical and legal advocacy, and specialized children’s services. The City offers housing assistance services to qualified residents through the LACDA and the Housing Resources Center. Rosemead 2021-2029 Housing Element Background Information  19 Large Households A large household is defined as a household consisting of five or more persons and is considered a special needs population due to the limited availability of affordable and adequately sized housing. The lack of large units is particularly evident among rental units. Large households often live in overcrowded conditions, due to both the lack of units of appropriate size, and insufficient income to afford available units of adequate size. As shown in Table 21, 24.3 percent of the total households in Rosemead in 2019 consisted of five or more persons. This is much higher than the County’s proportion of 14.2 percent with five or more persons per household, shown in Table 22. Table 21 Large Households: Rosemead Household Size Renter Households Owner Households Total Number Percent Number Percent Number Percent 1-person 759 10.1% 880 12.6% 1,639 11.3% 2-person 1,837 24.5% 1,735 24.8% 3,572 24.7% 3-person 1,414 18.9% 1,497 21.4% 2,911 20.1% 4-person 1,579 21.1% 1,227 17.5% 2,806 19.4% 5 or more-person 1,884 25.2% 1,643 23.5% 3,527 24.3% Total 7,473 100% 6,982 100% 14,455 100% Source: 2015-2019 ACS Table 22 Large Households: Los Angeles County Household Size Renter Households Owner Households Total Number Percent Number Percent Number Percent 1-person 560,840 31.2% 290,464 19.1% 851,304 25.6% 2-person 472,810 26.3% 458,616 30.1% 931,426 28.0% 3-person 283,055 15.7% 276,318 18.1% 559,373 16.8% 4-person 242,405 13.4% 258,477 17.0% 500,882 15.1% 5 or more-person 238,169 13.2% 235,641 15.5% 473,810 14.2% Total 1,797,279 100% 1,519,516 100% 3,316,795 100% Source: 2015-2019 ACS Resources Lower income large households would benefit from many of the same organizations and that provide services to other lower income households. To assist lower income residents, Programs 1, 2, and 12 addresses direct assistance to renters and owners, Programs 3, 6 and 10 focus on providing additional opportunities for new affordable housing, and Program 14 includes meaningful actions to increase access to opportunity and reduce displacement. Farmworkers Farmworkers are traditionally defined as persons whose primary incomes are earned through seasonal agricultural work. Farmworkers have special housing needs because they typically earn lower wages than many other workers and move throughout the season from one harvest to the next. According to the 2019 ACS data, the industry sector including agriculture accounted for 87 employees (0.3 percent) of the Rosemead labor force, and 22,103 employees (0.4 percent) of the Los Angeles County workforce. The Rosemead 2021-2029 Housing Element 20  Background Information SCAG Report provides additional context, reporting that there were 57,741 farmworkers by occupation in the SCAG region. Currently, there are no parcels in the City dedicated to farming operations or identified on the State Farmland Map. Such agricultural land uses are not identified on the Land Use Map of the Rosemead General Plan or in the Rosemead Zoning Ordinance. Although the presence of farmworkers in the community and surrounds is extremely limited, the City acknowledges the need for expanded housing opportunities for this group. The California Employee Housing Act requires that housing for six or fewer employees, including farmworkers, be treated as a regular residential use. This is not currently addressed in the City’s code. Therefore, an action has been added to Programs for compliance with State law (Program 9). Homeless Persons Throughout the country, homelessness has become an increasing problem. Factors contributing to the rise in homelessness include the general lack of housing affordable to low- and moderate-income persons, increases in the number of persons whose incomes fall below the poverty level, reductions in public subsidy to the poor, and the de-institutionalization of the mentally ill. However, homeless numbers in Rosemead have tended to be lower than in many parts of Los Angeles County. The City is a member of the San Gabriel Valley Homeless Coalition and participates in the countywide Continuum of Care through the Los Angeles Homeless Service Authority (LAHSA) for HUD SuperNOFA funds. In this capacity, City staff attends meetings of social service providers, supplies information to the umbrella organization responsible for coordinating the continuum, and receives information from them. In addition, the City works with public service agencies and others to identify services and service gaps in the community to ensure that citizens looking for services are referred to agencies that can be of the most assistance to them. The most recent homeless count in the City was in 2020, conducted as part of the Greater Los Angeles Homeless Count by LAHSA in cooperation with the City’s Community Development Department and the Los Angeles County Sheriff’s Department. As an opt-in partner in the program, Rosemead was able to obtain a specific point-in-time estimate of all homeless individuals and families within its borders. The report of the count prepared by LAHSA estimates that there were 79 unsheltered homeless persons in the City at this time. Table 23 provides a breakdown of sheltered versus unsheltered persons. Table 23 Locations of Homeless Persons: Rosemead (2020) Number Percent Persons on the Street 42.0 53.0% Persons in Cars 7.0 8.8% Persons in Vans 8.1 10.3% Persons in RVs/Campers 11.8 14.9% Persons in Makeshift Shelters 8.8 11.1% Persons in Tents 1.5 1.9% Source: 2020 Los Angeles Homeless Services Authority (LAHSA) Homeless Count by Community/City Resources In response to homelessness, City designated employees will respond to the homeless in a positive way to ensure that their needs are met. City staff will direct the needy and homeless to an agency or provider that meets their specific needs. On average, there are five or fewer requests for assistance per year. Rosemead 2021-2029 Housing Element Background Information  21 Currently, the City provides the following supportive services to homeless individuals and families through the following agencies and service providers: • 211 LA County: Dedicated to providing an easy-to-use, caring, professional source of guidance and advocacy to a comprehensive range of human services, available on a 24 hour/ 7 days per week basis. Also operates the Cold Weather Shelter Hotline for the County and provides staffing and human services information for emergency centers during disasters. • Catholic Rainbow Outreach: Provides shelter and rehabilitation for men dealing with drug and alcohol abuse issues. This shelter has 13 beds available. • Down Payment Assistance Program: The City has funds available to assist low-income residents with the purchase of their first home. The assistance is in the form of a silent second loan (no payments until the loan is paid or until 30 years from the loan origination) and is available to low-income families who have not owned a home within the previous 3 years. The amount of the loan will vary depending on the value of the house to be purchased to assist the homebuyer in achieving a 20 percent down payment. The maximum allowable loan is currently $70,000, with increases anticipated in the next fiscal year. • Los Angeles Homeless Service Authority (LAHSA): LAHSA Emergency Response Teams (ERTs) are available to assist residents Monday through Friday from 8:00 a.m. to 5:00 p.m. LAHSA ERTs offer outreach services to homeless encampment dwellers, emergency services and shelter referrals to homeless families and unaccompanied adults and youth, direct emergency services and transportation, and emergency assistance and referrals to social service agencies for people in the County who are at risk of experiencing homelessness. • People for People: Provides short-term services (food and clothing) directly. Its primary purpose is to assist the needy residents of the City. The group is composed of volunteers that raise funds year-round to provide distribution of food to families. • Section 8 Housing Assistance Agency: Provides rental assistance through the Federal Housing Choice Voucher program. The primary objective of the voucher program is to assist low-income (0% to 50% of MFI) persons and households, including those who are homeless or in danger of becoming homeless, in making rents affordable. The LACDA serves the City of Rosemead and provides voucher assistance to the residents. • The San Gabriel Pomona Valley Chapter of the American Red Cross: Provides emergency shelter for people who become homeless because of natural disasters. • The Salvation Army: Provides a variety of services including shelter service for men and women focusing on substance abuse treatment for persons with co-occurring mental and substance abuse disorders, overnight shelter, food, shower facilities, and case management to homeless persons. • The Southern California Housing Rights Center: Provides counseling assistance to families at risk of homelessness. • Family Promise of San Gabriel Valley: Provides temporary transitional housing for families as well as a full range of social services for clients. • YWCA-Wings: Provides emergency shelter for women and children who become homeless as a result of domestic violence. Services include 24-hour access to emergency housing and crisis hotline, food and basic personal items, crisis support and advocacy, counseling and support groups, medical and legal advocacy, and specialized children’s services. Overall, the City has not experienced an overwhelming population of homeless persons and has not experienced an outpouring of public concern to provide additional services within its boundaries. Social Rosemead 2021-2029 Housing Element 22  Background Information service agencies and providers within Rosemead and adjacent communities (where nearly all major services are provided) have not expressed that there is an extraordinary need to provide emergency shelters within Rosemead, as adequate facilities are available nearby and are not always filled to capacity. G. Housing Stock Characteristics To determine the extent of housing needs in a community, the analysis must be expanded beyond population, households, and employment characteristics, to also quantify the types of housing available. Housing need is defined as the difference between the types of housing required by the City’s existing and projected population, and the types of housing available. Size, price, and condition of existing units are the major factors in determining suitability. Housing Type and Tenure With a 2019 housing stock of 15,297 units, Rosemead is a medium-sized community in the San Gabriel Valley. Between 2010 and 2019, the City experienced a 1.8 percent increase in housing units, which was less than the growth observed in most nearby communities, including the County’s overall increase of 2.8 percent. As an older community with little remaining vacant residential land for new development, housing growth over the past several years has primarily been attributable to in-fill construction on small residential lots, or the construction of additional units on larger, previously under-utilized residential lots. Table 24 Housing Trends: Rosemead and Surrounding Jurisdictions (2010-2019) Jurisdiction 2010 2019 Percent Change (2010-2019) Rosemead 15,028 15,297 1.8% Alhambra 30,551 31,719 3.8% Monterey Park 20,631 21,318 3.3% San Gabriel 13,069 13,645 4.4% Los Angeles County 3,444,870 3,542,800 2.8% Source: 2019 American Community Survey As shown in Table 25, single-family units are the overwhelmingly dominant housing type in the City, accounting for 87.2 percent of all units in 2019. The number and proportion of multi-family units has declined slightly since 2010, as most new development came in the form of single-family homes. Table 25 Housing Units by Number of Units in Structure: Rosemead (2010-2019) Housing Type 2010 2019 Number Percent Number Percent Single-Family 12,280 84.9% 12,602 87.2% 2 to 4 units 810 5.6% 499 3.5% 5+ units 1,215 8.4% 1,143 7.9% Mobile Home 174 1.2% 211 1.5% Source: 2019 American Community Survey Housing tenure refers to whether a housing unit is owned, rented, or vacant. Tenure is an important indicator of the housing climate of a community, reflecting the ability of residents to afford housing. Tenure characteristics are primarily a function of household income, composition, and householder age. Rosemead 2021-2029 Housing Element Background Information  23 Tenure also influences residential mobility, with owner units generally experiencing lower turnover rates than rental housing. Historically, housing tenure in Rosemead was primarily characterized by owner-occupancy. However, according to the 2019 American Community Survey, less than one half (48.3 percent) of the units in the City were owner-occupied, reflecting an increase in the number of rental units. Overall, owner- and renter- occupied units have come to represent roughly equal proportions of Rosemead’s housing supply, and it is anticipated that the ratio will remain relatively stable during this planning period. Table 26 Occupancy Status by Tenure: Rosemead (2010-2019) Tenure 2010 2019 Number Percent Number Percent Owner-Occupied 7,378 49.1% 6,982 45.6% Renter-Occupied 7,086 47.2% 7,473 48.9% Vacant 564 3.8% 842 5.5% Total 15,028 100.0% 15,297 100.0% Source: 2019 American Community Survey Housing vacancy rates measure the overall housing availability in a community and are often a good indicator of how efficiently for-sale and rental housing units are meeting the current demand for housing. A vacancy rate of 5 percent for rental housing and 2 percent for ownership housing is generally considered healthy and suggests that there is a balance between the demand and supply of housing. A lower vacancy rate may indicate that households are having difficulty finding housing that is affordable, leading to overcrowding or overpayment. Housing Conditions The age of a community’s housing stock can provide an indicator of overall housing conditions. Generally, the functional lifetime of housing construction materials and components is approximately 30 years. Housing units beyond 30 years of age typically experience rehabilitation needs that may include replacement plumbing, roofing, doors and windows, foundations, and other repairs. Because Rosemead is a mature community, the vast majority of its housing stock is 30 years of age or older. As presented in Table 27, 94.6 percent of the 2019 housing stock units were constructed prior to 1980; a fact that reflects the community’s numerous older single-family neighborhoods. A majority (51.6 percent) of the units in the City, in fact, were constructed prior to 1960, making them more than 60 years old. The advanced age of the majority of Rosemead’s housing stock indicates the significant need for continued code enforcement, property maintenance, and housing rehabilitation programs to stem housing deterioration. The ACS includes surveys about three factors of what may be considered substandard housing. In Rosemead, 389 units lack telephone service, 77 units lack plumbing facilities, and 268 units lack complete kitchen facilities. Additional insights on housing conditions were gained through a review of data compiled by the City’s proactive Code Enforcement Program and Neighborhood Preservation Program, which are, aimed at eliminating blight and improving the quality of life in Rosemead neighborhoods. According to Code Enforcement Division records, a higher number of cases related to property maintenance occurred within areas identified as High Segregation and Poverty (Census Tract No. 060374823.04) than other neighborhoods within the City. From January 1, 2021 to December 15, 2021, the areas within the census tract had 62 code enforcement cases related to illegal construction, Rosemead 2021-2029 Housing Element 24  Background Information property maintenance, zoning, and construction projects. Of the 62 cases, 55 of those cases dealt with property maintenance. Approximately 30 percent of the properties in that area are in need of rehabilitation. Through the Code Enforcement and Neighborhood Preservation programs, residents are encouraged to become educated on the City’s municipal and zoning codes and to establish neighborhood and other community partnerships to find ways to keep their neighborhoods blight-free. The City of Rosemead’s 2019 CAPER reported 1,306 code enforcement cases, when only 1,000 were expected. The data shows the City opened 532 CDBG case for the 2018/2019 fiscal year with 496 of the CDBG cases have been close and 36 remain active. The City did not refer any cases to the City Attorney. For 2020, 746 residential code enforcement cases have been opened. Table 27 Age of Housing Stock: Rosemead (2019) Year Structure Built Units Percent of Total 2014 or later 117 0.8% 2010 – 2013 154 1.1% 2000 – 2009 514 3.6% 1980 – 1999 2,499 17.3% 1960 – 1979 3,708 25.7% 1940 – 1959 5,678 39.3% 1939 or earlier 1,785 12.3% Total 14,455 100.1% Source: 2019 American Community Survey Housing Costs The cost of housing determines whether a household will be able to obtain an adequately sized unit in good condition in the area in which they wish to locate. Table 28 shows that according to the 2019 ACS, Rosemead’s median home value was $556,600 or 18 percent higher than the median home value in 2010. This does not reflect the recent (2013) post-recession trends, which indicate even greater increases since 2011. Rosemead’s median home value is higher than the countywide median and in general, home values in the San Gabriel Valley have increased faster than the County as a whole. Table 28 Median Home Value: Rosemead and Surrounding Cities (2010, 2019) Jurisdiction Median Home Value Percent Change (2010-2019) 2010 2019 Rosemead $470,700 $556,600 18.1% Alhambra $514,800 $667,000 30.0% El Monte $396,600 $558,100 40.7% Montebello $456,500 $492,300 7.84% Monterey Park $495,600 $616,000 24.3% San Gabriel $569,100 $680,700 19.6% Temple City $582,100 $715,300 22.9% Los Angeles County $508,800 $644,100 26.6% Source: 2019 American Community Survey To obtain detailed information on housing sales activity in the City, housing and condominium sales were tracked over the period from May 2020 to May 2021 through Redfin. As shown in Table 29, 147 single- family homes were sold in the City during this period, while 73 multi-family homes/condominiums were sold. A local market survey done for the City’s FY 2021-2022 Action Plan (for a 3-month period) shows Rosemead 2021-2029 Housing Element Background Information  25 a median price of $670,000 in the City of Rosemead and a 95 percent median value price of $636,500 for single-family homes and $561,450 for condominium sales. Table 29 Home Sales: Rosemead (May 2020-May 2021) Number of Bedrooms Units Sold Median Value Average Value Percent of Total Single-Family Units One 1 $870,000 $870,000 0.7% Two 45 $595,000 $641,662 30.6% Three 54 $658,500 $700,062 36.7% Four 31 $880,000 $870,547 21.1% Five 14 $887,500 $844,843 9.5% Six or More 2 $934,000 $934,000 1.4% Total 147 – – 100.0% Multi-Family Units/Condominiums Two 12 $550,000 $618,666 16.4% Three 24 $593,000 $619,379 32.8% Four 22 $851,500 $850,491 30.1% Five 5 $855,000 $861,800 6.8% Six or more 10 $1,430,500 $1,396,150 13.7% Total 73 – – 100.0% Source: Redfin, Data accessed 5/5/2021 State law establishes five income categories for purposes of housing programs based on the area (i.e., county) median income (AMI): extremely-low (30% or less of AMI), very-low (31-50% of AMI), low (51- 80% of AMI), moderate (81-120% of AMI) and above moderate (over 120% of AMI). Housing affordability is based on the relationship between household income and housing expenses. According to HUD and the California Department of Housing and Community Development, housing is considered “affordable” if the monthly payment is no more than 30% of a household’s gross income. In some areas such as Los Angeles County, these income limits may be increased to adjust for high housing costs. Table 30 shows affordable rent levels and estimated affordable purchase prices for housing in Rosemead (and Los Angeles County) by income category. Based on State-adopted standards, the maximum affordable monthly rent for extremely-low-income households is $664, while the maximum affordable rent for very-low-income households is $1,255. The maximum affordable rent for low-income households is $2,142, while the maximum for moderate-income households is $2,177. Maximum purchase prices are more difficult to determine due to variations in factors such as mortgage interest rates and qualifying procedures, down payments, special tax assessments, homeowner association fees, and property insurance rates. With this caveat, the maximum home purchase prices by income category (Table 30) have been estimated based on typical conditions. Comparing the sale prices for a home in Rosemead with the City’s income structure, it is evident that homes are not available for purchase at prices that are affordable to the City’s low- and moderate-income households. By assisting prospective first-time homebuyers with down payment and closing costs, the City is expanding the supply of housing that is affordable to these households. However, even with such assistance, most lower-income households will still be unable to find an affordable home. Rosemead 2021-2029 Housing Element 26  Background Information Table 30 California Income Limits and Affordable Housing Costs 2021 Los Angeles County Median Income = $80,000 California Income Limits Affordable Rent Affordable Price (est.) Extremely Low (<30%) $35,450 $664 $93,135 Very Low (31-50%) $59,100 $1,255 $194,418 Low (51-80%) $94,600 $2,142 $346,450 Median $80,000 $1,777 $283,924 Moderate (81-120%) $96,000 $2,177 $352,446 Assumptions: Based on a family of 4, 10% down payment, 3% interest Sources: CA HCD 2021 Income Limits; LACDA 2020 Utility Allowance Schedule; OC Housing and Community Development Department Utility Allowances, 2021; Veronica Tam & Associates, 2021. Rental Housing In 2019, the median rent in Rosemead was $1,353, slightly lower than the countywide median of $1,400 and generally comparable to surrounding communities. As presented in Table 31, between 2010 and 2019, median rent in the City had increased 21.9%. The increase is comparable to surrounding cities and the Los Angeles County average. Table 31 Median Monthly Rent: Rosemead and Surrounding Cities (2010, 2019) Jurisdiction Median Rent Change 2010 to 2019 2010 2019 Actual Percent Rosemead $1,110 $1,353 $243 21.9% Alhambra $1,126 $1,436 $310 27.5% El Monte $1,037 $1,282 $245 23.6% Monterey Park $1,111 $1,400 $289 26.0% San Gabriel $1,188 $1,486 $298 25.0% Los Angeles County $1,117 $1,460 $343 30.7% Source: 2010, 2019 American Community Survey A review of fair market rents for the broader metropolitan areas provides additional context on the cost of rent in the region. Fiscal Year 2021 and 2021 Fair Market Rents for the Los Angeles-Long Beach- Glendale metropolitan area as reported by HUD are shown in Table 32 below. Table 32 Final FY 2021 and Final FY 2020 FMRs by Unit Bedrooms Year Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms FY 2021 FMR $1,369 $1,605 $2,058 $2,735 $2,982 FY 2020 FMR $1,279 $1,517 $1,956 $2,614 $2,857 Source: HUD User, FY 2021 Fair Market Rent Documentation System Local realtors indicate that the demand for high quality rental units in the City remains strong, and that new units with amenities command higher rents. The SCAG Report states that there is a 4.7 percent total vacancy rate in the City, which indicates a strong demand for rental housing. Location is also a key variable in the price of an apartment in Rosemead. Rosemead 2021-2029 Housing Element Background Information  27 Cost Burden Housing is generally the largest single expense item for most households. A household is considered to be cost burdened if housing costs (rent plus utilities) make up more than 30 percent of the household’s income, and severely cost burdened if housing costs exceed 50 percent of household income. However, a lower-income household spending the same percent of income on housing as a higher-income household will likely experience more true “cost burden.” Many Rosemead households experience a high cost burden, with 23.3 percent (3,420) of all households paying more than 30 percent to less than 50 percent, and 23.5 percent (3,445) paying more than 50 of the household’s income on housing costs, according to CHAS 2017 data shown on Table 30. While significant numbers of both owner and renter households are cost burdened, the problem is more prevalent among renters, with more than half (58.0%) of renters overpaying versus 35.3 percent of owners. Table 33 Housing Cost Burden Overview: Rosemead Owner Renter Total Cost Burden <=30% 4,620 3,050 7,670 Cost Burden >30% to <=50% 1,420 2,000 3,420 Cost Burden >50% 1,150 2,295 3,445 Cost Burden not available 75 60 135 Total 7,265 7,405 14,670 Source: CHAS 2013-2017 CHAS data (2017) provides further information on the extent of the cost burden problem. As shown in Table 34, across Rosemead’s 7,405 renter households, 56.4 percent (4,180) are lower income and cost burdened. Additionally, of the 4,180 total, 30.1 percent (2,295) of these lower income renter households are severely cost burdened. Across Rosemead’s 7,265 owner households, 17.0 percent (1,235) are lower income and cost burdened. Table 34 Cost Burden by Income Level and Tenure: Rosemead Income Level Renters Cost burden > 30%* Renters Cost burden > 50% Owners Cost burden > 30%* Owners Cost burden > 50% Household Income <= 30% HAMFI 2,300 1,905 650 430 Household Income >30% to <=50% HAMFI 1,115 360 585 365 Household Income >50% to <=80% HAMFI 765 30 835 270 Household Income >80% to <=100% HAMFI 95 0 270 65 Household Income >100% HAMFI 20 0 230 20 Total 4,295 2,295 2,570 1,150 Source: CHAS 2013-2017 *Includes the >50% households The widespread overpayment among households indicates a need for additional affordable housing; however, the City’s built-out nature means that it can only make incremental additions to the housing supply. Focused initiatives to increase housing capacity, such as the Garvey Avenue Specific Plan, help to address the challenge, but the number of units ultimately added will likely be insufficient to affect the larger regional housing market. Programs to increased affordable housing supply and affordability include Program 3 actions to support infill development and site recycling, and Program 6 to provide adequate sites to support efforts for the City to meet its fair share of the regional housing need. In addition, Rosemead 2021-2029 Housing Element 28  Background Information Program 10 addresses development of for lower income housing using HOME funds, and other State and federal loans and grants, according to the specific nature of the project. The City will also provide regulatory incentives, such as implementing the density bonus program. Program 12 addresses use of Housing Choice Vouchers to support low income renters. The Housing Choice Voucher program (frequently referred to as “Section 8”) is the federal government’s major program for assisting very-low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses, and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects. Overcrowding The California Department of Housing and Community Development defines overcrowding as housing units occupied by more than one person per room in a dwelling unit, excluding kitchen and bathrooms. In Rosemead, 2,060 (14.3%) occupied housing units had more than 1.0 occupants per room, which meets the definition for overcrowding, and 907 households (6.3%) had more than 1.5 occupants per room, which meets the definition for severe overcrowding (ACS 2019). Moreover, 792 owner-occupied households (11.3 percent) and 2,105 renter-occupied households (27.4 percent) in the City had more than 1.0 occupant per room, compared to 4.9 percent for owners and 15.6 percent for renters in the SCAG region. Actions to address cost burden such as increasing capacity for residential development through the Garvey Avenue Specific Plan, as well as new mixed-use zoning overlays, can provide for more opportunities for a range of housing types suitable for various household types and income levels in efforts to address overcrowding issues (see Programs 3, 6 and 10). Preservation of Assisted Housing California housing element law requires all jurisdictions to include a study of all low-income housing units that may be lost from the affordable inventory by the expiration of affordability restrictions. The law requires that the analysis and study cover a 10-year period. Three general cases can result in the conversion of publicly assisted units: • Prepayment of HUD mortgages: Section 221(d)(3), Section 202, Section 811, and Section 236: A Section 221(d)(3) is a privately owned project where HUD provides either below market interest rate loans or market rate loans with a subsidy to the tenants. With Section 236 assistance, HUD provides financing to the owner to reduce the costs for tenants by paying most of the interest on a market rate mortgage. Additional rental subsidy may be provided to the tenant. Section 202 assistance provides a direct loan to nonprofit organizations for project development and rent subsidy for low-income elderly tenants. Section 811 provides assistance for the development of units for physically handicapped, developmentally disable, and chronically mentally ill residents. • Opt-outs and expirations of project-based Housing Choice Voucher contracts: This federally funded program provides for subsidies to the owner of a pre-qualified project for the difference between the tenant’s ability to pay and the contract rent. Opt-outs occur when the owner of the project decides to opt-out of the contract with HUD by prepaying the remainder of the mortgage. Usually, the likelihood of opt-outs increases as the market rents exceed the contract rents. Rosemead 2021-2029 Housing Element Background Information  29 • Other: Expiration of the low-income use period of various financing sources, such as Low- Income Housing Tax Credit (LIHTC), bond financing, density bonuses, California Housing Finance Agency (CHFA), Community Development Block Grant (CDBG) funds, HOME funds, and redevelopment funds. Generally, bond financing properties expire according to a qualified project period or when the bonds mature. Density bonus units expire in either 10 or 30 years, depending on the level of incentives. Inventory of Affordable Housing Units Table 35 summarizes all publicly assisted rental properties in Rosemead. The inventory includes properties assisted by HUD, the former Rosemead Redevelopment Agency (under covenants and other agreements initiated prior to redevelopment dissolution), and Los Angeles County multi-family bonds, in addition to density bonus properties. Target levels include the very-low- and low-income groups. A total of 125 assisted housing units were identified in the City. Many affordable housing projects in the City maintain 55-year affordability covenants. The Rosemead Housing Development Corporation (RHDC), a nonprofit organization, is responsible for the oversight of two senior housing facilities: the Angelus Senior Housing Project and the Garvey Senior Housing Project. The City will continue to allocate approximately $250,000 annually toward the financing, operation, and management of the two sites. Table 35 Inventory of Publicly Assisted Units and Complexes: Rosemead (2019) Project Address Target Group Target Level Assisted Units Angelus Senior Housing 2417 Angelus Ave. Project Seniors Very Low 51 Garvey Senior Housing 9100 Garvey Ave. Project Seniors Very Low 72 Rio Hondo Community Development Corp. 9331 Glendon Way 8628 Landis View Ln. Family Family Low/Moderate Low/Moderate 1 1 Source: City of Rosemead At Risk Status State law requires an analysis of existing assisted rental units that are at risk of conversion to market rate. This includes conversion through termination of a subsidy contract, mortgage prepayment, or expiring use restrictions. The following at-risk analysis covers the period of 2021 through 2031. There are no at- risk units during this planning period and for the following 10 years. Based on information contained in the City’s CAPER, no federally assisted, low-income rental units within the City are at risk of converting to market rate by 2031. Similarly, the California Debt and Investment and Advisory Commission indicates no rental units within the City have been constructed with the use of multi-family mortgage revenue bonds. The Angelus Senior Housing Project was constructed in 1995, and the Garvey Senior Housing Project was constructed in 2002. Both projects were constructed with assistance from the Community Redevelopment Agency, which no longer exists. However, these units are owned and operated by the Rosemead Housing Development Corporation, which is a nonprofit corporation established by the City to create affordable housing and will be preserved in perpetuity as affordable housing. In addition, the City entered into an agreement in FY 2007/08 with the Rio Hondo Community Development Corporation (CDC) for a deferred-payment loan for the purchase of a three-bedroom single family home. In FY 2010/2011 the City entered into another agreement with the CDC for the purchase of a three-bedroom home located at 8628 Landis View Lane. The property is intended for rental to low- to moderate-income households and is subject to a 55-year affordability covenant. Rosemead 2021-2029 Housing Element 30  Background Information H. Summary of Regional Housing Needs State housing element law requires that each city and county develop local housing programs designed to meet its “fair share” of existing and future housing needs for all income groups, as determined by the jurisdiction’s council of governments. This “fair share” allocation concept seeks to ensure that each jurisdiction accepts responsibility for the housing needs of not only its resident population, but also for the jurisdiction’s projected share of regional housing growth across all income categories. Regional growth needs are defined as the number of households expected to reside in a city, as well as the number of units that would have to be added to compensate for anticipated demolitions and changes to achieve an “ideal” vacancy rate. In the six-county southern California region, which includes the City of Rosemead, the agency responsible for assigning these regional housing needs to each jurisdiction is SCAG. The regional growth allocation process begins with the California Department of Finance’s projection of statewide housing demand for a given planning period, which is then apportioned by the State HCD among each of the State’s official regions. SCAG’s current RHNA model identifies the fair share of existing and future housing needs for each jurisdiction for the planning period from October 2021 to October 2029. Providing adequate housing for all economic segments of the City’s current and future population remains a primary goal of the City of Rosemead. However, given the availability of limited resources, the City expects that current and future programs will focus exclusively on those households with the greatest needs. The following summarizes major housing need categories by income group as defined by federal and State law. It includes the City’s RHNA housing need pursuant to §65584 of the California Government Code. The City recognizes the special status of very-low- and low-income households, which in many cases are also elderly, single-parent, or large family households. These specific areas – expected growth, substandard housing, overpayment for housing, and households with special needs – are areas where the City can focus its efforts toward realizing its goal of providing adequate housing opportunities for all segments of the City’s population. In addition, through efforts to increase homeownership for first-time homebuyers, the City can address housing affordability while also contributing to neighborhood stabilization. As part of a comprehensive housing strategy, the City can focus on promoting a range of housing types, particularly newer, larger units to meet the needs of the local population. Future Housing Need For this Housing Element, the City of Rosemead is allocated a RHNA of 4,612 units, as shown in Table 36. Approximately 38.8 percent of these units should accommodate very-low- and low-income households. It will be a challenge for the City to achieve this allocation, because the City is essentially built out. The policies and programs identified in the Housing Element are focused on meeting this future housing needs allocation. The RHNA does not distinguish between very-low- and extremely-low-income households, instead identifying a single projection for households with income up to 50 percent of the County median. To determine the number of units for extremely-low-income households, this Housing Element assigns 50 percent of the RHNA’s very-low-income units to the extremely-low-income category, as permitted under Government Code §65583(a)(1). Rosemead 2021-2029 Housing Element Background Information  31 Table 36 Regional Housing Needs Allocation: Rosemead (2021-2029) Income Category Housing Need Number Percent Extremely Low Income (0 to 30% AMI) 577 12.5% Very Low Income (0 – 50% AMI) 577 12.5% Low Income (51 – 80% AMI) 638 13.8% Moderate Income (81 – 120% AMI) 686 14.9% Above Moderate Income (More than 120% AMI) 2,134 46.3% Total 4,612 100.0% Source: SCAG, Final RHNA Allocation Plan (3/4/21) – Planning Period 2021 – 2029 I. Fair Housing Affirmatively Furthering Fair Housing In 2018, California passed Assembly Bill (AB 686) as the statewide framework to affirmatively further fair housing; to promote inclusive communities, further housing choice, and address racial and economic disparities through government programs, policies, and operations. AB 686 defined “affirmatively furthering fair housing” to mean “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity” for persons of color, persons with disabilities, and other protected classes. The bill added an assessment of fair housing to the Housing Element, which includes the following components: a summary of fair housing issues and assessment of the City’s fair housing enforcement and outreach capacity; an analysis of segregation patterns and disparities in access to opportunities, an assessment of contributing factors, and an identification of fair housing goals and actions. The City of Rosemead is a federal entitlement grant recipient of Community Development Block Grant and HOME Investment Partnership funds from HUD, and is required to certify that it will engage in fair housing. The City has always had an ongoing commitment to prevent, reduce, and ultimately eliminate housing discrimination and other barriers related to equal opportunity in housing choice, and adopted an updated Analysis of Impediments to Fair Housing Choice (AI) in January 2020 The City’s Al is a comprehensive review of policies, procedures, and practices within Rosemead that affect the location, availability, and accessibility of housing and the current residential patterns and conditions related to fair housing choice. Fair housing choice should be understood as the ability of persons of similar incomes to have available to them the same housing choices regardless of race, color, religion, sex, disability, familial status, or national origin. An impediment to fair housing choice is an action, omission, or decision taken because of race, color, religion, sex, disability, familial status, or national origin that restricts housing choices or the availability of housing choice. It is also any action, omission, or decision that has this kind of effect. The City’s accomplishments in affirmatively furthering the goal of fair housing choice, and eliminating impediments for fair housing choice, include continuing to contract with a fair housing organization (Southern California Housing Rights Center). This agency implemented a Fair Housing Program within Rosemead that provided an extensive and comprehensive community education program to inform the community about fair housing laws and unlawful discrimination. In addition, the City continued to offer housing programs without impediments based on race, color, religion, sex, disability, familial status, or national origin. The City also strived to increase the awareness of the availability and benefits of City programs regarding housing choice, housing assistance, and landlord/tenant counseling through public information to the community. This information was distributed to the community in several ways, Rosemead 2021-2029 Housing Element 32  Background Information including notices placed in the City’s newsletter, website, other social media outlets (such as Facebook and Twitter), and community events. This proved to have a positive impact on the community by ensuring that the community is aware of the different services provided in works with the Housing Rights Center on behalf of the City of Rosemead. Additional accomplishments in expanding affordable housing opportunities through a Zoning Code Update and creation of new mixed-use development opportunities are further described in Appendix A. Housing Inventory and Program Development AB 686 also requires that preparation of the Housing Element land inventory and identification of sites occur through the lens of AFFH, and that the Housing Element include a program that promotes and affirmatively furthers fair housing opportunities throughout the community. The program should address the issues identified through the assessment. The program must include: 1) meaningful actions that address disparities in housing needs and in access to opportunity; 2) a timeline of concrete actions and a timeline for implementation; and 3) no actions inconsistent with AFFH. Section 5, Housing Plan, includes the required AFFH program, based on the recommendations of the AI and the additional analysis done for the 6th Cycle Housing Element update included as Appendix D. Rosemead 2021-2029 Housing Element Constraints on Housing Production  33 3. CONSTRAINTS ON HOUSING PRODUCTION Some constraints can limit or prohibit efforts to maintain and provide affordable housing. Such constraints must be overcome to implement the General Plan, including the Housing Element. Some constraints may be minor enough that market conditions can easily overcome problematic situations. Other types of constraints can be significant enough to discourage development altogether. This section of the Housing Element discusses potential constraints on the provision and cost of housing in Rosemead. A. Physical Constraints The physical constraints to development in Rosemead can be categorized into two types: infrastructure and environmental. To accommodate future residential development, improvements are necessary to infrastructure and public services related to man-made facilities such as sewer, water, and electrical services. Portions of the City are also constrained by various environmental hazards and resources that may affect the development of lower-priced residential units. Although these constraints are primarily physical and hazard-related, they are also associated with the conservation of the City’s natural resources. Infrastructure Constraints Water and sewer services are the major infrastructure constraints to housing production in Rosemead. Water: Water resources are provided to the City by five purveyors. If the water purveyor finds that adequate fire flow and supply do not exist, the developer must obtain a will serve letter from the water purveyor demonstrating adequate capacity for domestic and fire water requirements. Water is available to purveyors operating in the City from the San Gabriel Valley Groundwater Basin (SGVGB), which is the only available source of local groundwater, and from the Upper San Gabriel Municipal Water District, which is the only available source of imported water. Local groundwater accounts for a major portion of the City’s water supply. In 1979, the SGVGB was discovered to have groundwater supplies that were contaminated. As a result of widespread pollution in the SGVGB, it has been classified as a “Superfund” site by the U.S. Environmental Protection Agency. Various local, state, and federal agencies are cooperating in the clean-up of the SGVGB and applying stringent water treatment to ensure the delivery of potable water to consumers. Sewer: Los Angeles County Public Works Sewer Maintenance District maintains the City sewer system. Large projects are required to prepare a sewer study and replace or contribute an in-lieu fee to undersized segments of the sewer system. Wastewater from Rosemead is processed at the Whittier Narrows Wastewater Treatment Facility (WNWTF), which is located in the nearby City of El Monte. Built in 1972, the WNWTF provides primary, secondary, and tertiary treatment for 15 million gallons of wastewater per day, and serves a population of approximately 150,000 people. Most of the wastewater treated at this facility is reused as groundwater recharge in the Rio Hondo and San Gabriel Coastal Spreading Grounds, or for irrigation. Public Services: Future residential growth in Rosemead will require additional public service personnel if the existing levels of service for law enforcement, fire protection, and other essential services are to be maintained. The nature and characteristics of future population growth will, to a large extent, determine which services will require additional funding to meet the City’s future needs. Many of these new residents will include families that will impact schools and recreational facilities. Rosemead 2021-2029 Housing Element 34  Constraints on Housing Production Overall, the City’s water, wastewater, and sewer capacity will remain adequate to accommodate the projected RHNA allocation. While future development of identified RHNA sites would place higher demands on water, wastewater, and sewer facilities, development of land uses allowable under the Rosemead General Plan, inclusive of the identified RHNA sites, is not anticipated to exceed buildout capacities described in the General Plan. For example, water facilities associated with buildout scenarios, including RHNA site development. would use approximately 9,730 acre-feet per year (AFY), which is 5,946 AFY less than the General Plan. Further, wastewater generation associated with the future development of potential RHNA sites is expected to be comparable to projected Los Angeles County Sanitation District’s (LACSD) demands, and thus would not exceed those capacities. As the City of Rosemead acknowledges that water and sewer services can be major infrastructure constraints to housing production. To the end, the City has included a program to develop water and sewer master plans by the end of 2025 to ensure of adequate infrastructure capacity is available throughout the planning period (Program 7). Master plans are anticipated to analyze existing capacity and maintenance factors as well as estimate future water, wastewater and recycled water facilities that will be necessary to provide adequate services to future residents and business based upon projected growth. Environmental Constraints The City of Rosemead is fully urbanized with the general location and distribution of land uses having been previously determined. Substantial changes to the City’s incorporated boundaries are not anticipated. Future growth and change in the City will involve the conversion or replacement of existing uses or infill on vacant parcels and the only opportunity for measurable growth is through the intensification of existing land uses. There are no environmentally sensitive areas remaining in the City. The local topography generally does not represent a constraint to housing production. Flooding Hazards: Four major Los Angeles County Flood Control District (LACFCD) channels traverse, or are adjacent to, the City of Rosemead including Alhambra Wash, Rubio Wash, Eaton Wash, and the Rio Hondo Channel. Rubio Wash traverses the City from the northwest to the southeast before emptying into the Rio Hondo Channel. Eaton Wash partially coincides with the northeastern boundary of the City and also drains into the Rio Hondo Channel. The Rio Hondo Channel is the major flood control channel in the region and accepts runoff from numerous channels in this portion of the San Gabriel Valley. According to the LACFCD, a deficient storm drain system is only capable of conveying runoff from a 10-year storm. In Rosemead, many storm drains were designed for flood waters generated by 2- to 50- year storms. As such, the LACFCD has identified 22 areas within Rosemead that are deficient in storm drainage capacity. Very little residential land, or land designated for residential development, is affected by these flood-prone areas, however. The entire City of Rosemead is in “Flood Zone X and D,” as designated by the Federal Emergency Management Agency (FEMA). As such, FEMA has rescinded the community panel flood map. In addition, no flooding is expected due to dam or levee failure, and the City’s inland location eliminates the possibility of damage due to tsunami or seiche. Seismic Hazards: The City of Rosemead is located in a seismically active region, as are all southern California cities, and is subject to risks and hazards associated with potentially destructive earthquakes. The Rosemead General Plan identifies numerous active faults in the surrounding region and buried fault traces within the City. Rosemead 2021-2029 Housing Element Constraints on Housing Production  35 Although there are no active faults within the City, four major active fault zones are located within a 15- mile radius of the City that could be responsible for considerable ground shaking in the event of a major earthquake. The Sierra Madre fault zone is located at the base of the San Gabriel Mountains approximately 5 miles north of the City. The Raymond fault zone is located less than 2 miles north of the City, and the Whittier-Elsinore fault zone is located 4 miles southeast of Rosemead. It is believed that an extension of the Whittier fault zone may exist in the City. In addition, the epicenter of the 1987 Whittier Narrows earthquake (magnitude 5.9) was approximately 1 mile south of Rosemead. The San Andreas fault zone, the largest in California, is located north of the San Gabriel Mountains approximately 35 miles north of the City. Most of the City is located within an identified liquefaction zone.2 According to the definition of this zone, the City lies within an area where historic occurrence of liquefaction, or local geological, geotechnical, and groundwater conditions indicate a potential for permanent ground displacements such that mitigation as defined in California Public Resources Code §2693(c) would be required. Liquefaction, if caused by a shock or strain from an earthquake, involves the sudden loss of soil strength and cohesion, and the temporary transformation of soil into a fluid mass. Older structures located in the City are especially vulnerable to liquefaction. They may not have been constructed or reinforced to meet modern seismic standards. Just over half the sites identified to accommodate the City’s RHNA are within a liquefaction zone. These sites are scattered throughout the central and eastern portions of the City, located generally between San Gabriel Boulevard and Strang Avenue. As these sites become available for recycling, new residential development will be built to current codes, which require liquefaction remediation. Noise: Residential land uses are considered the most sensitive to excessive noise. Development near major noise generators requires special consideration in terms of noise attenuation that could add to the cost of development. Traffic along the regional freeways and major arterials is the main source of noise in Rosemead. Other localized sources include schools/parks and activity related to various land uses both within and outside the City’s boundaries. Typically, noise due to activity associated with various land uses is of concern only when it generates noise levels that may be viewed as a nuisance or would cause noise standards to be exceeded on adjacent properties. Other mobile noise sources include trains and aircraft from the nearby airport in the City of El Monte. The major generators of noise in the City of Rosemead include the following: • Vehicular and rail traffic on the San Bernardino Freeway; • Vehicular traffic on the Pomona Freeway; • Rail traffic on the tracks that parallel the City’s northern boundary; and • Local and through traffic traveling on the major arterials in the City, including Rosemead Boulevard, Valley Boulevard, San Gabriel Boulevard, Garvey Avenue, and Walnut Grove Avenue. A large majority of the sites identified to accommodate the City’s RHNA are likely to be impacted by noise generated by local traffic on the City’s major arterials such as Valley Boulevard, Garvey Avenue, San Gabriel Boulevard, and Del Mar Avenue. According to the General Plan Noise Element, noise levels along these corridors are typically 75 dBA CNEL or higher, which is considered “unacceptable” in proximation to residential uses. As sites along these aerials become available for recycling to new 2 State of California Seismic Hazard Zones, El Monte Quadrangle, Official Map Released March 25, 1999. Rosemead 2021-2029 Housing Element 36  Constraints on Housing Production residential uses, new development will be built to current codes and designed to reduce nuisance noises to an acceptable level in compliance with General Plan policies and development standards. B. Market Constraints Non-governmental constraints on the provision of housing include the costs of land, construction, and labor, as well as ancillary expenses such as financing, marketing, fees, and commissions. Construction: Hard construction costs, including the cost of materials (wood, cement, asphalt, roofing, pipe, glass, and other interior materials) and labor, comprise more than 60 percent of total development costs. Materials costs vary depending on the type of housing being constructed and amenities provided. Labor costs are influenced by the availability of workers and prevailing wages. According to the Terner Center for Housing Innovation at UC Berkeley,3 affordable and market-rate developers have seen increasing construction costs throughout the State. For example, the cost of building a 100-unit affordable project in California increased from $265,000 per unit in 2000 to almost $425,000 in 2016. On a price-per-square-foot basis, the Terner Center reports that the cost of constructing multi- family housing increased by 25 percent between 2009 and 2018, reaching an average of $222 per square foot by 2018. The cost increases reported by Terner align with other industry measures of construction cost including the California Construction Cost Index, which recorded a 24 percent change in costs between 2009 and 2018. In the Los Angeles region the costs increased even more, with the average hard costs exceeding the statewide average by $35 per square foot. Although construction costs are a significant factor in the overall cost of development, the City of Rosemead has no direct influence over materials and labor costs. Reduced amenities and lower-quality building materials (above a minimum level of acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, manufactured housing (including mobile homes and modular housing) may provide for lower priced housing by reducing construction and labor costs. An additional factor related to construction costs is the number of units built at the same time. As the number of units developed increases, construction costs over the entire development are generally reduced based on economies of scale. The reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. Land: Expenses related to land include the cost of the raw land, site improvements, and all other costs associated with obtaining government approvals for development. Land costs vary significantly in Rosemead dependent primarily on location, zoning, and the availability of infrastructure to serve the proposed development. According to Zillow,4 the typical home value in Rosemead is $700,700, and Realtor.com4 reports that the median sold price for homes in Rosemead was $686,000 (both web pages accessed on May 22, 2021). On the same date, Zillow showed four vacant residential lots for sale in Rosemead with costs ranging from $34 to $40 per square foot of land. In Los Angeles County, it has been estimated that the average land share of home values in 2020 was 60.9 percent.5 Left alone, the escalating market price of land will tend to encourage mainly higher priced development. Higher density zoning could reduce the per unit cost of land, but land zoned for higher densities commands a higher market price. 3 See https://ternercenter.berkeley.edu/research-and-policy/the-cost-of-building-housing-series/ and https://ternercenter.berkeley.edu/wp-content/uploads/pdfs/Hard_Construction_Costs_March_2020.pdf 4 Web pages accessed on May 22, 2021. 5 Bokhari, Sheharyar, Updated on 10/6/2020, https://www.redfin.com/news/value-of-house-vs-land/ Rosemead 2021-2029 Housing Element Constraints on Housing Production  37 Timing and Density: The market can also constrain the timing between project approval and requests for building permits. In some cases, this may be due to developers’ inability to secure financing for construction. In Rosemead, the average time between project approval and request for building permit is typically six weeks. As described in the Housing Resources section of this Housing Element, the realistic development capacity of the City’s residential land was determined through an analysis of the City’s land use controls in combination with existing housing market conditions. Using this methodology, the Low Density Residential designation achieved 100 percent of the maximum density allowed, while Medium Density and High Density were lower than the maximum at 71 percent and 66 percent, respectively, as shown in Table 43. Financing: Financial constraints affect the decisions of consumers and developers alike. Nearly all homebuyers must obtain a loan to purchase property, and loan variables such as interest rates and insurance costs play an important role in the decisions of homebuyers. Homeowners also consider the initial costs of improvements following the purchase of a home. These costs could be related to making necessary repairs or tailoring a home to meet individual tastes. While the City does not control these costs directly, City activities such as code enforcement are related to the maintenance of housing stock. Mortgage rates also have a strong influence over the affordability of housing. The availability of financing affects a person’s ability to purchase or make improvements on a home. Increases in interest rates decrease the number of persons able to afford a home purchase. Decreases in interest rates result in more potential homebuyers introduced into the market. Interest rates are determined by economic conditions and policies developed at the national level. Since local jurisdictions cannot affect interest rates, they can offer interest rate write-downs to extend home purchase opportunities to targeted resident segments, such as lower income households. Local governments may also insure mortgages, which would reduce down payment requirements. In May 2021 home mortgages for borrowers with good credit were available at historically low rates (just over 3 percent). This comparatively low rate does not represent a constraint to the purchase of housing. However, the high cost of housing in the City in itself may reduce access to mortgages as potential homebuyers lack the necessary down payment and the percent of income required to cover mortgage payments that lenders generally require. These conditions make a home purchase particularly difficult for first-time homebuyers and lower- and moderate-income households. More information on housing cost in included in Section G, Housing Stock Characteristics. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and ethnicity of loan applicants. The City’s AI includes an analysis of HMDA data, obtained from LendingPatterns.com, which include the following findings: • Most City residents obtain conventional bank home mortgages with some FHA and VA loans. • In the Los Angeles area, much like the City, 86% of approved loans are conventional mortgage loans. In 2018 there were 233 loans approved in the City of which almost 10% were denied and 56% were approved. Also 79% of the approved loans were anticipated to be owner-occupied homes. • The majority of loans, 57. 8%, were approved for upper income residents followed by moderate income residents, 16. 5%. Rosemead 2021-2029 Housing Element 38  Constraints on Housing Production • The Asian population, currently 61% of the City' s population, make up 67% of the approved loans. Governmental Constraints: Housing affordability can be affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing. Land use controls, site improvement requirements, building codes, fees, and other local programs intended to improve the quality of housing, may serve as a constraint to housing development. Land Use Designations The Land Use Element of the Rosemead General Plan sets forth policies for guiding development, including residential development, in Rosemead. These policies establish the quantity and distribution of land allocated for future development and redevelopment in the City. The City’s Zoning Code implements the land use policies of the General Plan by establishing development regulations that are consistent with the General Plan policies. The City’s General Plan and Zoning Code are both posted on the City’s website at https://www.cityofrosemead.org/government/city_departments/community_development/planning, in compliance with State law including Assembly Bill 1483. The Land Use Plan Map is illustrated in Figure 1, General Plan Land Use Designations. The City’s land use categories are established to accommodate a range of housing types and densities. Preservation and enhancement of single-family residential neighborhoods, as well as providing new opportunities to pursue economic development through actions including encouraging new high quality and affordable housing stock, are key goals. New development must be compatible with and complement established residential areas. Two residential/commercial mixed-use categories provide options for innovative approaches to land use and development. These categories allow for a flexible mix of land uses in the same building, on the same parcel, or side by side within the same area. Such complementary use stimulates business activity, encourages pedestrian patronage, and provides a broader range of options to property owners to facilitate the preservation, re-use, and redevelopment of structures. Land use categories, as described in the General Plan, include the following. Low Density Residential (LDR): This category is characterized by low-density residential neighborhoods consisting primarily of detached single-family dwellings on individual lots. The maximum permitted density is 7.0 dwelling units per acre, with a typical population density of approximately 28 persons per acre. Medium Density Residential (MDR): This category allows for densities of up to 12 units per acre. Housing types within this density range include single-family detached homes on smaller lots, duplexes, and attached units. The typical population density is approximately 34 persons per acre. High Density Residential (HDR): This category accommodates many forms of attached housing: triplexes, fourplexes, apartments, and condominiums/townhouses – and small-lot or clustered detached units. The maximum permitted density is 30 units per acre, with a typical population density of approximately 79 persons per acre. Mixed Use Residential/Commercial (MRC): This category allows vertically or horizontally mixed commercial, office, and residential uses with an emphasis of retail uses along the ground floor. This designation applies to areas of Rosemead with historically less intensive commercial and office development. Parcels in these areas generally are not large enough to support major commercial development, and thus allow for infill development. Alternatively, parcels may be assembled and consolidated to create larger, integrated development sites. Residential densities are Rosemead 2021-2029 Housing Element Constraints on Housing Production  39 a minimum of 25 units per acre with a maximum of 30 units per acre, with a typical population density of approximately 119 persons per acre. Rosemead 2021-2029 Housing Element 40  Constraints on Housing Production Figure 1 General Plan Land Use Designations Source: City of Rosemead General Plan, 2021 Rosemead 2021-2029 Housing Element Constraints on Housing Production  41 Mixed Use High Density Residential/Commercial: This category also permits vertically or horizontally mixed use commercial, office, and residential uses, but greater residential densities are permitted and encouraged. Residential densities are minimum of 40 units per acre with a maximum of 60 units per acre within the category, and the typical population density is approximately 191 persons per acre. Garvey Avenue Specific Plan: The Garvey Avenue Specific Plan will support the development of over 1.18 million square feet of commercial development, 892 dwelling units (DU), and 0.77 acres of open space. These estimates represent a realistic building of the planning area based on an analysis of existing development that will persist through the life of the proposed Garvey Avenue Specific Plan plus anticipated redevelopment. • The Garvey Avenue Specific Plan Residential/Commercial (GSP-R/C) zoning district modifies the R-2 and C-3 zoning districts’ standards to be more specific to the Plan area and to facilitate a greater opportunity for residential or commercial development. Such development in the GSP-R/C area is expected to feature designs and forms that create an appropriate pedestrian scale along or nearby the Garvey Avenue corridor. The GSP-R/C zoning district provides transition and buffer areas between single- and multi-family residential land uses in the surrounding neighborhoods and the higher land use intensity and building scale on Garvey Avenue. The zoning district enables flexibility in development approaches while requiring high-quality design that respects and adds value to adjacent residential development. • The Garvey Avenue Specific Plan, Incentivized Mixed-Use (GSP-MU) zoning district will transform key pockets of Garvey Avenue into active pedestrian and retail areas with a wide mix of uses to serve a variety of needs and stimulate a range of environments. The zoning district allows for the greatest possible flexibility in development choices and a model of development along the corridor featuring residential uses carefully integrated into buildings with active ground-floor commercial frontages. Virtually all parcels designated for residential development in the City are already built out. Nonetheless, additional residential development can be accommodated through several means, including the development of vacant/underutilized land, redevelopment, recycling, and General Plan Amendments with associated rezonings, including the City’s initiatives to create mixed-use zones to allow for the construction of additional dwellings as part of comprehensive development projects. The mixed-use designations expand allowable uses upon the approval of conditional use permits and include mixed commercial/residential development in designated commercial zones. The residential land use categories of the General Plan, and the residential densities allowed there under, are shown in Table 37. Rosemead 2021-2029 Housing Element 42  Constraints on Housing Production Table 37 General Plan Residential Land Use Categories Designation Land Use Category Maximum Allowable Dwelling Units per Net Acre Residential Categories LDR Low-Density 7 du/ac MDR Medium-Density 12 du/ac HDR High-Density 30 du/ac Mixed Use Categories MRC Mixed Use: Residential/Commercial 30 du/ac MHRC Mixed Use: High Density Residential/Commercial 60 du/ac Garvey Avenue Specific Plan GASP-R/C GASP-MU 7 du/ac (30 du/ac with community amenities) 25 du/ac (80 du/ac with community amenities) Source: Rosemead General Plan, Land Use Element 2010 Note: While not a General Plan land use designation, the FCMU Overlay provides a General Plan implementation tool with maximum residential density of 40 du/ac to 60 du/ac (and up to 80 du/ac with community benefits). Over time, as properties transition from one use to another or property owners rebuild, land uses, and intensities will gradually shift to align with the intent of the City’s General Plan Land Use Element. Table 38 summarizes the land use distribution, typical level of development anticipated, and the resultant residential levels of development that can be expected from full implementation of land use policies established by the General Plan. Average development densities and potential shown below reflect primarily established densities. Table 38 Land Use and Estimated Dwelling Units for General Plan Buildout: Residential Land Uses Designation Land Use Category Net Acres Estimated Units per Net Acre Estimated Dwelling Units Residential Categories LDR Low-Density 965 7.0 6,756 MDR Medium-Density 582 8.5 4,947 HDR High-Density 116 19.8 22,97 Mixed Use Categories MRC Mixed Use: Residential/Commercial1 25 30.0 509 MHRC Mixed Use: High Density Residential/ Commercial2 39 48.0 1,415 GASP Garvey Avenue Specific Plan3 88 10.1 892 Total 1,815 – 16,826 Source: Rosemead General Plan, Land Use Element 2010 1 Assumes a 67% residential / 33% commercial land use mix. 2 Assumes a 75% residential / 25% commercial land use mix. 3 Assumes a 65% residential / 35% commercial land use mix. Rosemead 2021-2029 Housing Element Constraints on Housing Production  43 Nevertheless, some projects, depending on scope and extent of amenities, may require additional consideration, such as subterranean parking, to accommodate the maximum number of units allowed by code. Regardless, it is possible to construct a project at maximum density with the full number of at-grade parking spaces if dwelling units remain at or near minimum development standards specified in the Municipal Code and the project excludes large-scale amenities such as swimming pools and fitness centers. Qualified affordable housing projects could also be built with reduced parking spaces, by requesting incentives or concessions as allowed under the State Density Bonus Law. Recent amendments to California’s Density Bonus Law (AB 2345, 2020) further provide that, upon a developer’s request, a locality must utilize State-mandated parking for qualifying projects. For example, under State law, only 1.5 on-site parking spaces is required for a 2- to 3-bedroom unit. Table 39 presents the residential zoning code development standards (R-1, R-2, R-3, RC/MUDO, GASP, and FCMU Overlay). The R-3 zone has a 35-foot, 2.5-story height limit, which generally means that multi- family projects in this zone that are built out to the maximum density of approximately 29 units per acre will need to include subterranean parking, because the two required spaces per unit generally cannot be accommodated at-grade. Because subterranean parking can cost $20,000 or more per space to construct, this could add significantly to the cost of purchasing or renting a finished unit. In recognition of this fact, the Housing Element’s land resources inventory considers all R-3-zoned sites to be inappropriate for lower-income housing development and assigns all units on these sites to the moderate/above-income category. Similarly, the provision of two spaces per unit in the R-1 and R-2 zones is anticipated to add significantly to the cost of development, and thus sites within these zones have also been classified as appropriate for moderate/above-income units. However, State Density Bonus Law allows for parking reductions, as discussed above and addressed in Code Amendments and Incentives (Section 5, Housing Plan). Zoning for a Variety of Housing Types Multi-family Housing Per the Zoning Code (Title 17 of Rosemead Municipal Code), “Multi-family Housing” means a structure or portion thereof containing three or more dwelling units designed for the independent occupancy of three or more households. Multi-family housing is permitted in the R-2 and R-3 zones, the RC-MUDO (Residential-Commercial Mixed Use Development Overlay) zone, and the GSP-R/C (Garvey Avenue Specific Plan, Residential/Commercial), GSP-MU (Garvey Avenue Specific Plan Incentivized Mixed-Use) and FCMU Overlay zone. The R-2 zone only allows single-family detached and duplex units. The R-2 zone allows one unit per every 4,500 square feet of lot area, while the R-3 zone allows densities of up to 30 units per acre. The RC-MUDO zone allows maximum densities of 30 to 60 units per acre, depending on the precise General Plan designation of the property in question. The GSP-R/C zone allows up to 7 units per acre without the provision community benefits and up to 30 units per acre with the provision of community benefits. The GSP-MU zone allows up to 25 units per acre without the provision of community benefits and up to 80 units per acre with the provision of community benefits. The FCMU Overlay allows a maximum residential density of 40 du/ac to 60 du/ac (and up to 80 du/ac with community benefits). Rosemead 2021-2029 Housing Element 44  Constraints on Housing Production Table 39 Residential Development Standards Development Standards R-1 (Single-Family Residential) R-2 (Light Multiple Residential) R-3 (Medium Multiple Residential) R/C MUDO (Residential/Commercial Mixed-Use Development Overlay) GSP-R/C (Garvey Avenue Specific Plan, Residential/ Commercial) GSP-MU (Garvey Avenue Specific Plan, Incentivized Mixed- Use) FCMU (Freeway Corridor Mixed Use) Overlay Lot Area (minimum) 6,000 SFm 6,000 SFm 10,000 SFm 30,000 SFm 6,500 SFm Mixed-Use: 10,000 SFm Other: 5,000 SFm FCMU-C 10,000 SFm FCMU-B 30,000 SFm Lot Width (minimum) 50 Linear Feet (FT) 50 FT 70 FT n/a 70 FT 100 FT n/a Front Setback (minimum) 20 FT 20 FT 15 FT 12 FT from curbg 10 FT Nonresidential: no minimum Ground Floor Residential: 10 FT Mixed Use: 0 FT Residential: 10 FT Side Setback (minimum) 5 LF or 10% of lot width, whichever is greater (10 FTa) 5 LF or 10% of lot width, whichever is greater (10 FTa) 10 LF (15a FT) None required; 10 FT if providede 5h FT 10 FT when adjacent to existing residential, school, or park use (otherwise, no minimum)h Mixed Use: 0 FT Residential: 5 FT Rear Setback (minimum) 25 LF or 20% of lot depth, whichever is less (35 FTb) 20 LF or 20% of lot width, whichever is less (35b FT) 15 If abutting non-residential uses: none required, 10 FT if provided; if abutting residential uses: 10 FT, if abutting an alley, 10 FT (20 LF if a parking structure access way is present) 20 FT or 20% of lot width, whichever is lessk 20 FT if abutting existing residential, school, or park use (otherwise, no minimum)k Mixed Use: 20 FT Residential: 20 FT Height (maximum) 30 FT 30 LF 35 FT If designated MRC, 45 FT; if designated MHRC, 55 FTJ 35 l FT 75 l FT Mixed Use: 65 FT Residential: 35 FT Floor Area Ratio (maximum) 0.35 LF (0.40c FT) 0.35 LF (0.40c LF) 0.35 FT If designated MRC, 1.6 FT; if designated MHRC, 2.0 FT Without the provision of Community Benefits, 0.75 FT; with the provision of Community Benefits, 1.0 FT Without the provision of Community Benefits, 1.6 FT; with the provision of Community Benefits, 3.0 FT 2.0 Floor Area (minimum) 1,000 SF 750 SF See (f) below n/a see (i) below see (i) below n/a Rosemead 2021-2029 Housing Element Constraints on Housing Production  45 Development Standards R-1 (Single-Family Residential) R-2 (Light Multiple Residential) R-3 (Medium Multiple Residential) R/C MUDO (Residential/Commercial Mixed-Use Development Overlay) GSP-R/C (Garvey Avenue Specific Plan, Residential/ Commercial) GSP-MU (Garvey Avenue Specific Plan, Incentivized Mixed- Use) FCMU (Freeway Corridor Mixed Use) Overlay Parking (minimum) 2 spaces/unit (3 spacesb) 2 spaces/unit (3 spacesb) 2 spaces/unit; 0.5 spaces/unit for guest parking 2 space/unit; 0.5 spaces/unit for guest parking 1 space/unit; 0.5 spaces/unit for guest parking 1 space/unit; 0.5 spaces/unit for guest parking Studio/1 bedroom: 1 space/du; 2+ bedrooms: 2 spaces/du 0.5 spaces/unit for guests a Minimum requirement for corner lot (side-yard on street-side of lot) or for R-3 lot adjacent to R-1 or R-2 lot(s). b Minimum requirement for dwellings with more than four (4) bedrooms and greater than 2,000 s.f. of living area. c Additional five percent may be obtained through use of the design incentive program identified in the Municipal Code Section 17.16.260 and 17.20.230. d At ground level. e Where the rear of a lot abuts the side of residential uses, schools, or parks: a 20-foot setback shall be maintained within 25 feet of the established common property line. f Bachelor apartment: 600 sq. ft.; one-bedroom apartment: 650 sq. ft.; two-bedroom apartment: 800 sq. ft.; 200 sq. ft. for each additional bedroom. g Minimum building setback area shall include a minimum 7-foot-wide detached sidewalk and a minimum five-foot wide parkway adjacent to all streets. h Where the side is adjacent to existing residential, school, or park use: a 10-foot setback shall be maintained. All residential, commercial, and mixed-use developments shall have a side variable height when abutting R-1 or R-2 zone. This specifies a setback minimum of 10 feet from the property line, which the height increasing at a 60-degree angle from that point. i Studio unit: 600 sq. ft.; one-bedroom apartment: 650 sq. ft.; two-bedroom apartment: 800 sq. ft.; 200 sq. ft. for each additional bedroom. j All residential/commercial mixed-use developments shall have a variable height limitation when abutting R-1 and R-2 zones in accordance with Section 17.08.050.I. k All residential, commercial, and mixed-use developments shall have a rear variable height when abutting R-1 or R-2 zone. This specifies a setback minimum of 25 feet from the property line, which the height increasing at a 60-degree angle from that point. l An additional 5 feet beyond the height limit is allowed for unique architectural elements as determined by the Community Development Director. m A legally created lot that is nonconforming lot due to lot area may still developed by any use permitted in the zone. Rosemead 2021-2029 Housing Element 46  Constraints on Housing Production Additional zoning provisions supporting housing development includes: • Exclusive Residential Zoning: The City’s zoning ordinance encourages the efficient reuse of land. The only permitted uses in the R-3 zone are multiple-family dwellings, apartment houses (defined as three or more units), boarding houses, and accessory structures. However, Rosemead Municipal Code §17.12.030(B)(2)(a) allows the construction of single units on lots that can only feasibly accommodate one unit under the R-3 development standards. In addition, nonconforming structures must be removed or modified to be incorporated as an integral part of one harmonious and coordinated multi-family development. • Minimum Density: The City’s mixed-use and high-density mixed-use designations carry minimum densities of 25 and 30 units per acre, respectively. This will encourage developers to realize the full development potential of their sites and add substantial numbers of units to the City’s affordable housing stock. • Plan Approval: The development of multiple dwellings in the R-2 and R-3 zones is permitted “by-right.” Developers are required to submit and obtain Planning Division approval of plot plans and development plans showing conformity with the code, but no Conditional Use Permits are required. • Planned Development Zone: Multi-family dwellings are permitted in the PD zone. Projects developed in the PD zone are designed to be approved under a precise plan, which may permit lot and yard areas that are smaller than would otherwise be allowed. To increase housing opportunities provided by this designation, the City has amended the zoning ordinance to reduce the minimum site size requirement from two acres to one acre. • Development Incentives: The City will immediately notify owners of identified under- utilized parcels of incentives that are available to encourage recycling. These include State Density Bonus Law and below market rate financing available through multi-family mortgage revenue bond programs. • Anti-Mansionization Ordinance: Any residence in the R-1, R-2, or R-3 zones that exceeds 2,500 square feet of developed living area requires design review to control the development of overly large dwellings. • In-Fill Development: A recent trend in residential construction has been the development of small “flag lot” subdivisions on deep and narrow lots. The zoning ordinance contains provisions, such as reduced lot size requirements for interior lots, to facilitate this type of development. The City expects this trend to continue. In addition, the City of Rosemead will be adopting a Freeway Corridor Mixed-Use Overlay zone in targeted areas in and around Interstate 10. The primary goal of this effort is focused on creating usable and modern development standards and guidelines, streamlining review procedures, and integrating implementation focused strategies. The City envisions transforming the identified opportunity areas into multi-modal, multi-use areas, where new residential development may be incorporated. In addition, the creation of an overlay zoning district for opportunity sites along the I-10 Freeway with freeway ingress and egress off-ramps is an action item in Strategy 1 of the City of Rosemead’s Strategic Plan 2018-2020. Strategy 1 focuses on aggressively pursuing economic development to enhance local shopping and dining options, encourage new high quality and affordable housing stock, beautify commercial corridors, create jobs, and increase General Fund revenues to sustain service levels and maintain public facilities. Adoption of the FCMU Overlay Zone is included as a Program in Section 5. Rosemead 2021-2029 Housing Element Constraints on Housing Production  47 Mobile Homes and Manufactured Housing Pursuant to the authority granted under California Government Code §65852.3(a), mobile homes and manufactured housing in Rosemead are permitted by-right in the R-2 zone and are regulated in the same manner as conventional housing. Also, in accordance with the City’s authority under State law, mobile homes must undergo design review before being installed. The review is limited to roof overhang, roof material and design, and the mobile home’s exterior finish. Current code allows mobile and manufactured homes to be installed on R-1 zoned lots, as long as applicants obtain a determination from the Planning Commission and the City Council that the mobile home use is compatible with surrounding uses, will not be detrimental to surrounding properties, and is in harmony with the elements and objectives of the General Plan. However, for further compliance with State law, the City will amend the Zoning Code to allow manufactured housing by-right in the R-1 zone and establish applicable standards to guide development (Program 9). Per the Zoning Code (Title 17 of Rosemead Municipal Code), “Mobile Home Park” means a type of residential development, established either as a legal subdivision of land with individual mobile home pads and common areas or as a development where pads are leased or rented, for the purpose of accommodating mobile home units on individual pads as part of a coordinated development. A mobile home park may include common areas and facilities for the use of all park residents. To obtain a permit, the park must incorporate a number of improvements to ensure the well-being of its residents. These improvements include provision of utilities such as water and electricity, clearly designated vehicle parking, adequate circulation space, lighting, landscaping, garbage disposal, and laundry facilities. Each mobile home must be allotted a space of at least 3,000 square feet, and the park must dedicate at least 100 square feet per unit to recreation space. The City also has a definition for “Trailer Parks.” “Trailer Park” means an area of land where two or more trailer spaces are rented, or held out for rent, to accommodate trailers used for human habitation, and where the predominant number of spaces is occupied for nine or more consecutive months. Emergency Shelters State law requires that the City address the emergency housing needs of persons experiencing homelessness. An emergency shelter is a facility that provides shelter to individuals and families experiencing homelessness on a short-term basis. AB 139 (Statues of 2019) requires the need for emergency shelter to be assessed based on the capacity necessary to accommodate the most recent point- in-time count, the number of beds available on a year-round and seasonal basis, the number of beds that go unused on an average monthly basis, and the percentage of those in emergency shelters that move to permanent housing. Additionally, AB 139 requires that parking standards be based on staffing, not the number of beds in the shelter. As stated in Section 2.F (Special Needs Groups), the most recent homeless count in the City was in 2020, conducted as part of the 2011 Greater Los Angeles Homeless Count by LAHSA in cooperation with the City’s Community Development Department and the Los Angeles County Sheriff’s Department. The report of the count prepared by LAHSA estimates that there were 79 unsheltered homeless persons in the City at this time. Under SB 2, passed by the State Legislature in 2007, the City is required to identify at least one zone where emergency shelters will be permitted without a conditional use permit or any other type of discretionary approval, and to identify sufficient capacity to accommodate the need for emergency shelters, including at least one year-round facility. The City is not required to actually construct any shelters – simply to Rosemead 2021-2029 Housing Element 48  Constraints on Housing Production permit them to operate in at least one zone with adequate sites to accommodate the unmet need for seven beds as identified above. A Municipal Code amendment to permit emergency shelters by-right (i.e., without a conditional use permit or any other type of discretionary review) in the M-1 zone is currently in process to meet this State law requirement. The amendment will be adopted in January 2022 concurrent with the Housing Element. The City has determined that the M-1 Light Manufacturing zone is appropriate to accommodate emergency shelters. This zone, being primarily located along or close to arterial streets such as Garvey Avenue and Walnut Grove Avenue, offers the benefits of enhanced access to public transit, grocery stores, and other life-sustaining resources, while minimizing any incompatibility with existing neighborhoods. Currently, the M-1 zone can accommodate a total of 11 potential emergency shelters, which would only house 77 unsheltered persons (7 beds × 11 potential sites). To comply with State law, the Municipal Code amendment will amend the maximum number of beds to 10. By increasing the maximum number of beds to 10, the City can potentially house a total of 110 unsheltered persons (10 beds × 11 potential sites) and adequately accommodate the 79 unsheltered persons as identified in the 2020 Los Angeles Homeless Services Authority (LAHSA) Greater Los Angeles Homeless Point in Time (PIT) Count. In addition, the code amendment will no longer impose parking requirements for clients, and will only require one off- street parking space per staff member, in compliance with State law. There are numerous non-vacant sites with marginal or low-value existing uses that could be feasibly adapted to accommodate one or more emergency shelters to satisfy Rosemead’s unmet need. These sites generally are all located on or in close proximity to the Garvey Avenue commercial/industrial corridor between Walnut Grove Avenue and the eastern City limit as well as along the northern part of Walnut Grove Avenue. These areas offer all of the resources described above. The sites located on or close to the Garvey Avenue commercial/industrial corridor also lies within walking distance of the Garvey Avenue Community Center, where residents can obtain assistance and referrals for social services, at 9108 Garvey. The area is served by several bus lines, including regional service provided by the Los Angeles County Metropolitan Transportation Authority’s Lines 70, 287, and 770; and the Rosemead Explorer, a local circulator operated by the City. State law (AB 101, Statutes 2019) also includes provisions for low barrier navigation centers (LBNC). AB 101, Article 12 defines a “Low Barrier Navigation Center” as a “Housing First, low-barrier, service‑enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” LBNCs must be allowed by-right in mixed-use and nonresidential zones where multi-family uses are permitted. The City’s Zoning Ordinance does not yet meet all of the new requirements; therefore, the 6th Cycle Housing Element includes a program to address these requirements. Transitional and Supportive Housing Transitional housing is a type of supportive housing used to facilitate the movement of individuals and families experiencing homelessness to permanent housing. Transitional housing offers case management and support services with the goal to return people to independent living, usually persons return to independent living within between 6 and 24 months. Supportive housing, in its broadest definition, is housing linked with social services tailored to the needs of the population being housed. Supportive services can be provided either on-site or off-site. Typically, supportive housing is permanent housing. The Consolidated Plan states that the City’s role and responsibility for homeless services and support are collaborative in nature, as this is largely covered by Rosemead 2021-2029 Housing Element Constraints on Housing Production  49 outside agencies (i.e., the Los Angeles Homeless Service Authority and the San Gabriel Valley Consortium on Homeless). However, the City supports agencies through cooperation and financial resources (when available) to carry out this work. The City relies on coordinated efforts with LAHSA to provide shelter opportunities; the East San Gabriel Valley Coalition for the Homeless to provide information, counseling, and referral services to homeless persons who reside in the City, Family Promise of San Gabriel Valley to provide emergency shelter services and social services for families with children, as well as other local agencies in providing services for homeless persons. The City provides an annual allocation of CDBG funds toward the operation of Family Promise of San Gabriel Valley, a homeless shelter for families with children. This year the City expects this investment of CDBG funds will benefit five families. The City will also work with LAHSA and the East San Gabriel Valley Coalition for the Homeless to address emergency shelter and transitional housing needs of homeless persons. Per the Zoning Code (Title 17 of the Rosemead Municipal Code), “Transitional Housing” and “Transitional Housing Development” means buildings configured as rental housing developments but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months. “Supportive Housing” means housing with no limits on the length of stay that is occupied primarily by persons with disabilities and individuals or families that are homeless at the time approved for occupancy, and that is linked to on-site or off-site services that assist the supportive housing resident in retaining the housing, thereby improving the resident’s health status, and maximizing his or her ability to live and, when possible and applicable, work in the community. Supportive housing that is provided in single-family, two-family, or multi-family dwelling units will be permitted, conditionally permitted, or prohibited in the same manner as other single-family, two-family, or multi-family dwelling units under this code. The City currently allows transitional and supportive housing by-right in the R-1, R-2, R-3, and GSP-R/C zones. Recent State law (AB 2162, 2018) requires that supportive housing, meeting certain criteria, be allowed by-right in zones where multi-family and mixed uses are permitted. State law also stipulates that minimum parking standards for units occupied by supportive housing residents are prohibited if the development is within one-half mile of a public transit stop. The 6th Cycle Housing Element includes a program to amend the City’s code for conformance with State law. Accessory Dwelling Units (ADUs) The State Legislature has identified that the California housing shortage is a significant statewide issue. The State believes that increasing the development of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) is one approach to address the housing crisis. Over the last couple of years, the State has amended ADU laws, and on September 8, 2020, the City amended the ADU code to comply with State provisions in effect at the time. Changes to ADU laws effective January 1, 2020, further reduce barriers, better streamline approval processes, and expand capacity to accommodate the development of ADUs and JADUs. A program to address these changes is provided in Section 5.B. Per the Zoning Code (Title 17 of Rosemead Municipal Code), an “Accessory Dwelling Unit” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single- family or multi-family dwelling is or will be situated. An accessory dwelling unit also includes the following: Rosemead 2021-2029 Housing Element 50  Constraints on Housing Production 1. An efficiency unit as defined in §17958.1 of the California Health and Safety Code. 2. A manufactured home, as defined in §18007 of the California Health and Safety Code. The City recognizes that ADUs are a valuable form of housing that meets the needs of family members, students, the elderly, in-home health care providers, people with disabilities, and others. Rosemead maintains an ordinance that contains standards and requirements for the construction of ADUs. The ordinance, in compliance with State law, establishes a ministerial process for the approval of ADUs, with development standards that are designed to ensure that ADUs remain compatible with the surrounding neighborhood. The following key standards are included: • ADUs are permitted in the R-1, R-2, R-3 zones or all other areas zoned to allow single-family or multifamily dwelling residential use. • An ADU shall be deemed an accessory use. ADUs do not exceed the allowable density for the lot upon which they are located. • On a lot with a proposed or existing single-family dwelling, the number of permitted ADUs are: • One attached ADU within the existing or proposed single-family dwelling or within an existing accessory structure; or • One detached new construction ADU and one JADU. • On a lot with existing detached single-family dwellings, the number of permitted ADUs are: • One attached ADU within the existing or proposed single-family dwelling or within an existing accessory structure; and • One proposed ADU within an existing accessory structure. • On a lot with an existing multi-family dwelling unit or two-family dwelling (duplex) unit, the number of permitted ADUs are: • Not more than two detached ADUs on a lot with one existing multi-family dwelling unit or two-family dwelling (attached duplex) unit. • At least one attached ADU is permitted within the existing multi-family dwelling unit or existing two-family (duplex) unit and up to twenty-five (25) percent of the existing dwelling units are permitted within the portions of the existing structure that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. • No ADUs shall be used as a short-term rental. • If floor-area ratio permits: • 150-850 square feet for a studio or one bedroom • 1,200 square feet detached, freestanding (not attached to any accessory use) ADU that provides more than one bedroom • If the creation of an ADU results in a floor-area ratio that is greater than what is permitted in the zone, an 800-square-feet ADU that is at least 16 feet in height with 4- foot side and rear yard setbacks shall be permitted provided that it is constructed in compliance with all other local development standards. • An ADU built within an existing accessory structure may include an expansion of up to 150 square feet beyond the physical dimensions of the existing accessory structure to accommodate ingress and egress. Rosemead 2021-2029 Housing Element Constraints on Housing Production  51 • Where both a JADU and a detached ADU are constructed, the ADU shall be no more than 800 square feet. To the extent possible, the creation of an ADU shall not alter the primary dwelling appearance of the lot. For the construction of a new ADU, the ADU shall match or complement the primary residence in architectural design, color, and materials. For the conversion of an existing accessory structure into an ADU, the ADU shall be permitted to remain as is. However, if an existing garage use is being converted into an ADU, all garage doors shall be removed. An ADU shall have independent exterior access and shall not have interior access from the primary residence. Single Room Occupancy (SRO) Per the Zoning Code (Title 17 of Rosemead Municipal Code) “Single Room Occupancy (SRO) Development” is a structure with six or more guest rooms in which thirty (30) percent or more of the units do not have a private bath and toilet within the unit. SRO units are multi-family dwellings that are used as an occupant’s primary place of residence. SROs are not considered hotels or motels as defined by the Municipal Code, nor are they considered extended-stay hotel/motel rooms. Therefore, SRO units are not subject to the Transient Occupancy Tax, and SRO operators shall not be liable for the extended-stay hotel/motel room in-lieu fee if they elect to rent out their rooms on a single-room occupancy basis. SRO developments are permitted in the Medium Commercial (C-3) zone, Central Business District (CBD), and Light Manufacturing and Industrial (M-1) zone upon the approval of a Conditional Use Permit. All SRO developments shall meet the development and operating standards listed in the Zoning Code (Title 17 of the Rosemead Municipal Code). Development Fees Various fees are collected by the City to cover the costs of processing permits and providing services and facilities, virtually all of which are assessed through a pro rata share system based on the magnitude of the project’s impact or on the extent of the benefit that will be derived. Table 40 describes the fees associated with typical single-family and multi-family development projects with assumptions given below. Table 40 Summary of Residential Permit Development Fees: Rosemead1 Type Single Family Multi Family Tentative Subdivision Tract and Parcel $1,385 + $100/lot + $450 $1,385 + $100/lot + $450 Maps (Engineering) (Engineering) General Plan Amendment $2,000 + $50 each add’l parcel $2,000 + $50 each add’l parcel Zone Change $1,700 + $50 each add’l parcel $1,700 + $50 each add’l parcel Zone Variance $975 $1,375 Design Review $800 $1,000 Building Permit Fee $5,372.83 $7,061.53 Plan Check Fee $4,164.86 $5,554.18 2 School District Fee $8,160 $8,160 Sewer Connection Fee $82.65 $82.65 Development Impact Fees 3 Traffic Facilities $1,024 $634 Public Safety Facilities $145 $121 General Government Facilities $1,013 $844 Parks Facilities $4,318 $3,598 Total fees per unit $18.562* $21.858* Rosemead 2021-2029 Housing Element 52  Constraints on Housing Production Source: City of Rosemead Planning and Building Division and Public Works Department 1 Calculations based on: 2,500 s.f. floor area, 400 s.f. garage; assessed valuation of $289,312 for Single Family and $416,387 for Multi Family; Garvey School District fee of $4.08/s.f.; excludes trade permits (plumbing, electrical, mechanical permit fees are assessed by fixture units). 2 This fee would apply to the first unit in a multifamily residential development if all proposed units are identical. The fees for the remaining units are 70% of the fees for the first unit. 3 For a project that involves the demolition of an existing structure and the construction of a new structure, the applicant shall be entitled to a credit in the amount of the applicable DIFs for the structure to be demolished, provided that such structure has not been vacant (as defined in Section 17.170.030), and provided that no DIF shall be reduced below $0. *The shown fees are typical fees that apply to new single-family and multi-family developments. While the fees described above are based on outdated assumptions regarding assessed valuations, the total fees noted at $18,562 per unit for a typical single-family residential unit comprise even less of a percentage of total costs than they did in prior years. Using the 2019 median housing price, the fees represent less than four percent of the price. Since Rosemead’s fees and exactions contribute a relatively small amount to the total costs of housing development compared to land and construction costs, they do not impose an undue constraint on housing production in the City. There were two notable changes to the City’s fee schedule, neither of which affects the overall cost of development. The first of these is the addition of the optional, one-time Pre-application Review fee for multi-family residential projects. This optional review allows the applicant, staff, and outside agencies to identify and resolve critical issues at the outset of the approval process, so that the formal application and review proceed as smoothly as possible with minimal unexpected delays. The $500 fee is charged on a per-project basis, meaning that the cost is spread among multiple units. If it is determined that the project should move forward with a formal development application and review process, the amount of the Pre- Application Review fee is deducted from the amount owed for all other fees incurred. Thus, the impact of this optional fee on overall development costs is negligible. The second change is the optional fee for expedited processing, set at $6,500. Payment of this fee gains the undivided attention of a planner, a building plan checker, and a public works plan checker. Optional expedited processing is a benefit, rather than a constraint on housing development. The City has also taken actions to streamline the development approval process through the Garvey Avenue Specific Plan adopted in 2018. Through the Specific Plan, the City pre-entitled the development of 892 residential units and approximately 1.1 million square feet of commercial development. As such, new developments are not required to go through a lengthy and time-consuming planning entitlement process and additional environmental studies such as Environmental Impact Report. The fee for each review is $700. The Planning Division application and development fee schedules are posted on the City’s website at https://www.cityofrosemead.org/government/city_departments/community_development/planning, in compliance with State law including Assembly Bill 1483. On-site and Off-site Improvements The City of Rosemead requires site improvements where they are not already in place to provide sanitary sewer and water service to residential areas, to make necessary circulation improvements, and to provide other infrastructure. In addition, the City may require, as a condition of granting additional entitlements, payment for various off-site improvements as part of project mitigation measures (e.g., payments to defray the cost of new traffic signals). Rosemead 2021-2029 Housing Element Constraints on Housing Production  53 On-site improvements required may include water mains and service connections to the property line with shutoff valves, sanitary sewers, and other improvements that may be needed. Developers are also required to construct all on-site streets, sidewalks, curbs, gutters, and affected portions of off-site streets. This is sometimes the case even with infill projects where such infrastructure is already available, since the facilities may require upgrading. All roadways must be paved to provide for smooth, quick, all-weather travel and to facilitate drainage. Because the City is built-out and its circulation system is well-established, it is anticipated that virtually no new street construction will be required for future residential development. Instead, street improvements tend to take the form of traffic mitigation measures, such as curb cuts, traffic signals, stop signs, turning lanes, and bus stop turnouts. Additional lanes may be required on selected roadway segments. If any future street construction is required, street widths and other aspects of roadway geometry will be required to conform to standards contained in the Policy on Geometric Design of Highways and Streets (commonly known as the “Green Book”) published by the American Association of State Highway and Transportation Officials. The Department of Public Works has provided estimates for the costs of various street construction materials. These costs are given in Table 41. Table 41 Estimated Street Construction Costs Material Cost per Unit Asphalt construction $110 per ton Sidewalk (concrete) $6 per square foot Curb/Gutter (concrete) $50 per lineal foot Slurry seal $215 per extra-long ton Source: Rosemead Public Works Department Roadway classifications are established in the General Plan Circulation Element according to the intended purpose and anticipated travel needs of each street. These classifications include major arterials, minor arterials, collector roads, and local streets. The City does not maintain uniform roadway width standards for existing streets, but rather determines the appropriate width for each individual roadway based on the traffic volume, surrounding land uses, available right-of-way, and other factors along the travel corridor. Additional improvements are required for mixed-use development in the RC-MUDO overlay. As this zone is intended to provide for the construction of street-fronting retail that immediately adjoins the sidewalk, the City has incorporated standards for sidewalk width, street trees, and pedestrian amenities to be provided by new mixed-use structures, as well as undergrounding of utilities that could hinder pedestrian movement adjacent to these buildings. These improvements are necessary and appropriate for higher-density mixed-use projects that are expected to generate significantly greater volumes of pedestrian traffic than existing uses do. The City currently does not require from developers of “by-right” projects any contributions toward off- site facilities or improvements, other than the development impact fees identified under “Fees and Exactions.” The City’s on-site and off-site improvement requirements are typical for urban development in a highly urbanized community. While these improvements add incrementally to the cost of housing construction, they are necessary to the viability and livability of a well-functioning city and are consistent with similar Rosemead 2021-2029 Housing Element 54  Constraints on Housing Production requirements in nearby jurisdictions. Thus, the City’s improvement requirements do not place undue constraints on housing production. The only requirement that has potential to add significantly to development costs is that of utility undergrounding for mixed-use projects. Complying with this requirement can add anywhere from thousands to tens of thousands of dollars to overall costs, depending on the size of the project, the particular circumstances of the site, and market conditions at the time of construction. While the City considers undergrounding to be desirable, it nonetheless recognizes that it can be cost- prohibitive for some projects. Thus, the RC-MUDO zone allows for the waiver of the undergrounding requirement – as well as any other development standards deemed to be an undue burden – at the discretion of the Planning Commission. The City is also prepared to work with developers to identify outside funding sources to defray the cost of complying with the requirement, including Southern California Edison utility rate monies that have been set aside for undergrounding under Public Utilities Commission Rule 20. In any case, the City does not intend to allow the undergrounding requirement to preclude mixed-use development altogether and will take all necessary and reasonable steps to ensure that no individual mixed-use project is excessively burdened by this requirement. Building Codes and Enforcement The 2019 California Building Code (CBC) as amended by Title 26 Los Angeles County Building Code (adopted November 26, 2019, by the Los Angeles County Board of Supervisors), together with their appendices, were adopted by reference for use in the City of Rosemead Furthermore, the codes are enforced throughout the State, and no local amendments have been adopted. Local Processing and Permit Procedures The evaluation and review process for residential development, as prescribed by City procedures, may affect the cost of housing in that holding costs incurred by developers are ultimately manifested in the selling price of the dwelling unit. The residential development review process in Rosemead is relatively uncomplicated but may involve up to three levels of reviewing bodies depending on the scope of the project: Planning Staff, Planning Commission, and the City Council. Average processing times for various permits that may be required prior to the final approval of a project are shown in Table 42. Project processing begins with the submittal of plans to the Planning Division. Turnaround time for completeness review is 2 weeks, and the number of rounds of review prior to being deemed complete is two. Applications for discretionary permits and environmental review may also be submitted to the Division concurrently. Most residential development in the City consists of single-family dwellings and subdivisions that do not require the preparation of an environmental impact report, thereby expediting processing time and costs. Average processing time for a typical residential project subject only to plan check and environmental review is two to three weeks, although projects subject to Planning Commission approval generally require an additional six weeks to process. While this review period is substantially shorter than other cities in southern California, a project’s review period may be extended substantially through the appeals process. Rosemead 2021-2029 Housing Element Constraints on Housing Production  55 Table 42 Residential Development Review and Processing Time Estimates Process Review Period Reviewing Body Design Review 2 months Planning Staff; Planning Commission Plan Check/Building Permit 6 weeks Planning Staff; Building Staff Conditional Use Permit 2-3 months Planning Commission Variance 2-3 months Planning Commission Tentative Parcels 4-6 months Planning Commission Environmental Impact Report 8-12 months Planning Commission; City Council General Plan Amendment with EIR 6-12 months Planning Commission; City Council Zone Change with EIR 6-12 months Planning Commission; City Council Source: City of Rosemead By-Right Review The procedure for processing an application to develop a typical new by-right residential structure is described below. This procedure is identical for both single-family homes and rental multi-family complexes. It is assumed that the structure is being constructed by-right with no additional entitlements sought (i.e., approval of tract or parcel map, variance, conditional use permit, zone change, development agreement, or General Plan amendment). 1. Applicant submits architectural plans (including site plans and floor plans) to the Planning Division. 2. Planning Staff conducts field review and issues comments to the project applicant. 3. Applicant re-submits architectural plans, revised as directed by Planning Staff. 4. Planning Staff reviews revised architectural plans for accuracy and completeness. Once all corrections are completed, Planning Staff will approve the plans. 5. Applicant submits the approved architectural plans and construction drawings to Building and Safety Division for plan check. 6. Building and Safety Division Staff conducts a preliminary review to verify application completeness and establish plan check review fees. 7. Once the Applicant submits the plan check review fee, Building and Safety Division Staff will conduct a full review and issue comments to the project applicant. In addition, Building and Safety Division staff will route the plans to the Public Works Department for review, if necessary. 8. Prior to Public Works Department submittal, the applicant shall have their engineer/architect prepare an LID Checklist and verify its accuracy by stamping and signing the checklist. 9. The applicant shall email an electronic copy of the project plans and any applicable reports to the Public Works Department. 10. The Public Works Department will issue comments to the project applicant. 11. Applicant re-submits revised plans and reports, as directed by the Public Works Department. 12. Public Works Staff reviews revised plans and reports for accuracy and completeness. Once all corrections are completed, Public Works Department Staff will approve the plans. If an encroachment permit is required, the Building and Safety Division is notified. Rosemead 2021-2029 Housing Element 56  Constraints on Housing Production 13. Applicant re-submits revised construction drawings as directed by the Building and Safety Division. 14. Building and Safety Division Staff reviews revised construction drawings for accuracy and completeness. Once all corrections are completed, Building Division Staff will approve the plans and route to the Planning Division for a stamp transfer. 15. Before permit issuance, the Building and Safety Division will ensure that all applicable approvals are obtain from the following agencies: • Planning Division • Public Works Department • Los Angeles County Fire Department/Fire Flow Form • Los Angeles County Public Works- Industrial Waste • Los Angeles County Public Works- Department of Sanitation • Los Angeles County Health Department • School District • South Coast Air Quality Management District 16. After the applicant has obtained all the necessary approvals, a building permit is issued and is valid for up to one year, unless extended. For the purposes of this analysis, “by-right” is defined as any project that does not require a public hearing before the Planning Commission or the City Council to gain approval. This category includes projects that must undergo site plan review, since this is an administrative process that requires only staff approval. Entitlement Review For projects seeking a variance, subdivision, planned development, zone change, General Plan amendment, or development agreement, a full entitlement review is conducted, culminating in a public hearing before the Planning Commission and, if necessary, the City Council. Pre-Application Process: The City has implemented a Pre-Application review for projects that will progress through other approval processes. The Pre-Application process has been created to streamline the overall entitlement process by helping the applicant, staff, and outside agencies identify and resolve critical issues at the outset. Applicants fill out a form with a checklist of required information, which staff uses to conduct an initial review of the proposal. Applications are accepted daily. If needed, a Pre- Application meeting is then scheduled to provide an opportunity for the applicant, City staff, and outside agencies to discuss the initial review in detail, answer questions and resolve any lingering issues. The meeting is attended by the applicant or a representative, and includes Planning, Building and Safety, and Public Works staff as well as representatives of any other department or outside agencies with an interest in the project. Formal Entitlement Review: After the Pre-Application review has been completed the applicant submits the project for formal entitlement review. Staff analyzes the proposal, prepares appropriate environmental documentation, and makes a recommendation in the form of a written report which is used by the Planning Commission and the City Council, if necessary, to approve or disapprove the project at a public hearing. The formal review process consists of the following steps: 1. Applicant submits a Planning Application Form to the Planning Division. Rosemead 2021-2029 Housing Element Constraints on Housing Production  57 2. Staff reviews and issues comments for application completeness, routes to reviewing agencies (including City Departments), and performs California Environmental Quality Act (CEQA) review. • If the project is not exempt from CEQA, Planning Division Staff will send out a Request for Proposal for Environmental Services, and the Environmental Services shall be completed prior to Staff deeming the application complete. 3. Staff (Planning, Building and Safety, and Public Works) will schedule a meeting with the applicant to discuss comments. Applicant modifies plans and resubmits as necessary. 4. After Planning Division Staff deems the application complete, a Notice of Public Hearing and a staff report are prepared with conditions of approval in advance of public hearing. 5. Notice is posted 10 calendar days ahead of public hearing date at the project site, at various public locations within the City, on the City’s website, and also published in the newspaper. If the project is not exempt from CEQA, notice is posted according to the requirements set forth by CEQA. 6. The project is presented as a public hearing at the Planning Commission hearing. 7. If the project requires City Council approval (such as a zone change, General Plan/Specific Plan amendment, appeals, etc.), the project is presented to the City Council at a second public hearing. 8. Within 10 calendar days, the applicant shall submit a notarized acceptance of conditions of approval, if any. 9. Applicant submits the approved architectural plans and construction drawings to Building and Safety Division for plan check. 10. Building and Safety Division Staff conducts a preliminary review to verify application completeness and establish plan check review fees. 11. After the Applicant submits the plan check review fee, Building and Safety Division Staff will conduct a full review and issue comments to the project applicant. In addition, Building and Safety Division staff will route the plans to the Public Works Department for review, if necessary. 12. Prior to Public Works Department submittal, the applicant shall have their engineer/architect prepare an LID Checklist and verify its accuracy by stamping and signing the checklist 13. The applicant shall email an electronic copy of the project plans and any applicable reports to the Public Works Department. 14. The Public Works Department will issue comments to the project applicant. 15. Applicant re-submits revised plans and reports, as directed by the Public Works Department. 16. Public Works Staff reviews revised plans and reports for accuracy and completeness. After all corrections are completed, Public Works Department Staff will approve the plans. If an encroachment permit is required, the Building and Safety Division is notified. 17. Applicant re-submits revised construction drawings as directed by the Building and Safety Division. Rosemead 2021-2029 Housing Element 58  Constraints on Housing Production 18. Building and Safety Division Staff reviews revised construction drawings for accuracy and completeness. After all corrections are completed, Building Division Staff will approve the plans and route to the Planning Division for a stamp transfer. 19. Before permit issuance, the Building and Safety Division will ensure that all applicable approvals are obtain from the following agencies: • Planning Division • Public Works Department • Los Angeles County Fire Department/Fire Flow Form • Los Angeles County Public Works- Industrial Waste • Los Angeles County Public Works- Department of Sanitation • Los Angeles County Health Department • School District • South Coast Air Quality Management District 20. After the applicant has obtained all the necessary approvals, a building permit is issued and is valid for up to one year, unless extended. If the application is denied by the Planning Commission, the applicant may appeal to the City Council, which will render a decision at a second public hearing, generally within 30 days. The City Council’s decision is final. Design Review: Applicants seeking to build or alter any structure within the D-O (Design Overlay) Zone, or any structure requiring a precise plan of design, must undergo design review, in which proposed building elevations, site plans, landscaping plans, and signs are reviewed by Planning staff and/or the Planning Commission. Applicants submit an application form and are provided a checklist specifying any other required materials (e.g., architectural drawings, photographs, paint samples) that must be included for staff and/or the Commission to make a decision. Where authorized, staff or the Commission approves, disapproves or conditionally approves each application based on the following findings, from RMC §17.28.020: A. The plans indicate proper consideration for the relationship between the proposed building and site developments that exist or have been approved for the general neighborhood; B. The plan for the proposed building and site development indicates the manner in which the proposed development and surrounding properties are protected against noise, vibration, and other factors which may have an adverse effect on the environment, and the manner of screening mechanical equipment, trash, storage, and loading areas; C. The proposed building or site development is not, in its exterior design and appearance, so at variance with the appearance of other buildings or site developments in the neighborhood as to cause the nature of the local environment to materially depreciate in appearance and value; D. The proposed building or structure is in harmony with the proposed developments on land in the general area, especially in those instances where buildings are within or adjacent to land shown on the General Plan as being part of the Civic Center or in public or educational use, or are within or immediately adjacent to land included within any precise plan which indicates building shape, size, or style; Rosemead 2021-2029 Housing Element Constraints on Housing Production  59 E. The proposed development is in conformity with the standards of this Code and other applicable ordinances in so far as the location and appearance of the buildings and structures are involved; and F. The site plan and the design of the buildings, parking areas, signs, landscaping, luminaries, and other site features indicate that proper consideration has been given to both the functional aspects of the site development, such as automobile and pedestrian circulation, and the visual effect of the development from the view of public streets. To help streamline multi-family residential projects, Program 9 includes an action to develop objective design guidelines for the R-3 zone. Mixed Use Development Approval Timeline: All development taking place under the RC- MUDO zone must go through the design review process, with the added requirement that the City Council must “approve or disapprove such project upon receiving a recommendation from the Planning Commission” (RMC §17.74.030). In acting on the design review application, the Council is required to use the same findings as those specified for the Commission. The overall time frame for mixed-use project approval is dependent on a number of factors that will be specific to each project. For subdivision-level approvals (i.e., those requiring a tentative tract map under the Subdivision Map Act), the process generally follows the following steps: • Pre-application review (staff): 1 month. • Design, entitlement, subdivision and environmental review (conducted concurrently; staff and Planning Commission): 6-9 months. • City Council review and approval: 1 month. • Total mixed-use project approval time frame: 8-11 months. The timeline described above could be affected by a number of factors, from the level of environmental review required to the applicant’s promptitude in submitting necessary materials and information. For mixed-use projects that do not seek a zone change or plan amendment, it is anticipated that a full environmental impact report will not be necessary. To date, none of the eight mixed-use proposals reviewed by the City since 2007 have required the preparation of an EIR, as determined by Planning staff. Thus, the timeline laid out above assumes a Negative Declaration or a Mitigated Negative Declaration will be prepared. If the City determines that a future project requires an EIR, the overall time frame could be lengthened by approximately 6 months or more. To help streamline mixed use development projects, Program 9 includes an action to develop objective design guidelines for the RC-MUDO zone. C. Constraints to Housing for Persons with Disabilities Housing that accommodates individuals with disabilities can require the incorporation of special features, such as front door ramps, special bath facilities, grab bars, and lower cabinets and light switches. Generally, the uncommon nature of these features makes them potentially expensive and difficult to implement, especially if they have to be retrofitted into an existing structure. Additionally, some disabled people may require residential care in a facility where they receive assistance in performing routine tasks. Section 2.F provides background information on the extent and types of disabilities experienced by Rosemead residents. Rosemead has adopted and currently enforces the 2019 California Building Code as amended by Title 26 Los Angeles County Building Code (adopted November 26, 2019, by the Los Angeles County Board of Supervisors), together with their appendices. The City has not added any standards or restrictions that Rosemead 2021-2029 Housing Element 60  Constraints on Housing Production substantially differ from those used throughout the State. Meaning that all regulations specified in Title 24 regarding the accessibility and adaptability of housing units for persons with disabilities currently are applied to all residential development in the City. Persons with developmental disabilities have many of the same housing needs as persons with other types of disabilities. They are likely to have a heightened need for residential care, and often have difficulty living independently and may need assistance ranging from occasional help with budgeting, shopping, and paying bills, to 24-hour support for basic household tasks such as cleaning, dressing, and cooking. Some persons with developmental disabilities are best served by staffed, supervised group or nursing homes, while others are adequately served by at-home and/or community support. In conventional housing units, developmental disabilities may manifest themselves as physical disabilities that require similar accessibility features to those described above. Residential Care Facilities Per the Zoning Code (Title 17 of Rosemead Municipal Code) "Residential Care Facility" means a family home, group care facility, residential care facility for the elderly, foster home, alcohol and/or drug recovery facility, intermediate care facility or similar facility, for 24-hour non-medical care of persons in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual. Residential Care Facilities are permitted are permitted by-right in the R-1, R-2, R-3 zones and in the FCMU Overlay zone. In the GSP-R/C zone, Residential Care Facilities with six or fewer people are permitted by-right and with seven or more people are permitted upon the approval of a Conditional Use Permit (CUP). Requests for Reasonable Accommodation Under the Federal Fair Housing Act, the City is required to make reasonable accommodations in rules, policies, practices, and services when such accommodations may be necessary to afford a person with a disability the equal opportunity to use and enjoy a dwelling. Such accommodations may include the relaxation of parking standards and structural modifications such as those listed in Section 3.C. The Zoning Code (Title 17 of Rosemead Municipal Code) establishes regulations that are intended to provide a formal procedure for persons with disabilities seeking equal access to housing under the Federal Fair Housing Act and the California Fair Employment and Housing Act (the “Acts”) to request reasonable accommodation in the application of the City’s land use regulations and to establish relevant criteria to be used when considering such requests. The requests would be approved once staff has made determinations as to the qualifying status of the individual, the necessity of the accommodation, the financial or administrative burden on the City, and whether the accommodation requires a fundamental alteration to the City’s development regulations and policies. Definition of Family The definition of “family” is also important to providing housing for persons with disabilities, as local governments may restrict access to housing for households failing to qualify as a “family” by the definition specified in the zoning ordinance. Specifically, a restrictive definition of “family” that limits the number of and differentiates between related and unrelated individuals living together may illegally limit the development and siting of group homes for persons with disabilities but not for housing families that are similarly sized or situated. Per the Zoning Code (Title 17 of Rosemead Municipal Code), “Family” means any group of individuals living together as the functional equivalent of a family where the residents may Rosemead 2021-2029 Housing Element Constraints on Housing Production  61 share living expenses, chores, eat meals together and are a close group with social, economic, and psychological commitments to each other. A family includes, for example, the residents of residential care facilities and group homes for people with disabilities. A family does not include larger institutional group living situations such as dormitories, fraternities, sororities, monasteries, nunneries, or boarding houses. The City’s definition is not a constraint because it does not limit the number of or differentiate between related and unrelated individuals occupying a home. 62  Housing Resources 4. HOUSING RESOURCES In accordance with California Government Code §65583, the Housing Element is to provide “an inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites.” Opportunities for residential development in the City fall into one of three categories: vacant land, sites where there is a potential to recycle or increase densities, and accessory dwelling units (ADUs). The development potential of these sites is calculated based on assumptions regarding the realistic density of new housing, which in turn are based on the existing densities of each of the City’s General Plan Land Use designations. For ADUs, the potential is based on past trends. This process is described in more detail below. Detailed maps showing the parcels that comprise the City’s inventory and tables documenting development potential are included in Appendix C. A. Realistic Development Capacity To determine the realistic development capacity of the City’s residential land, this analysis uses the typical, or expected, densities contained in the General Plan Land Use Element as shown in Table 43. These are the same densities used to project population growth under the General Plan’s land use policies. For those sites located in the Garvey Avenue Specific Plan and the Freeway Corridor Mixed Use Overlay, a realistic residential development capacity of 70 percent was assumed. For each residential and mixed use designation, these typical densities are derived from a survey of the existing housing. Using a combination of GIS, assessor, and field data, the number of dwelling units in each land classification was counted, divided by the total acreage, and compared to the maximum density allowed by the existing zoning. This comparison of existing and allowed densities yielded a set of percentages that were then applied to the General Plan densities. The reasoning behind this method was that a combination of housing market conditions and the City’s land use controls could be expected to limit the intensity of actual residential development to a similar percentage of the allowed density under the new land use plan to that observed under the old one. Using this methodology, the Low-Density Residential designation achieved 100 percent of the maximum density allowed, while Medium Density and High Density were significantly lower than the maximum at 71 percent and 66 percent, respectively. For the mixed-use designations, expected densities are based on: a) the maximum density allowed under Rosemead Municipal Code (RMC) §17.74.050(C)2; and b) the ratio of residential to commercial land use specified by the same section. This has resulted in an expected density of 48 units per acre and a 75 percent residential land use ratio being applied to high-density mixed-use sites (40-60 du/ac), and a density of 30 units per acre and a 67 percent land use ratio being applied to ordinary mixed-use sites (25-30 du/ac). In the Garvey Avenue Specific Plan, this has resulted in an expected density of 16 units per acre and a 65 percent residential land use ratio being applied to incentivized mixed-use sites (0-25 du/ac), while the residential/commercial land use sites achieved 70 percent of maximum (0-7 du/ac). Moreover, the Garvey Avenue Specific Plan Incentivized Mixed-Use is the only mixed-use designation that allows 100 precent non-residential development. However, the likelihood that properties within this area would be developed exclusively with non-residential use is considered very low as building permit data shows that the three largest sites within this area have already been approved for mixed use development featuring at total of 528 residential units. These development projects are currently in plan check with permit issuance pending. Rosemead 2021-2029 Housing Element Housing Resources  63 In instances where the Freeway Corridor Mixed-Use Overlay is applied to sites, this has resulted in an expected density of 42 units per acre and a 65 percent residential land use ratio being applied to high- density mixed-use sites (40-60 du/ac). It should be noted that these densities represent the aggregated intensity of development across all land in a particular General Plan designation, and that individual parcels may be developed to a higher or lower density depending on their dimensions. Nonetheless, the typical densities should provide a reasonably accurate approximation of the development that is likely to occur on any given lot. Table 43 Expected Densities of Residential Land General Plan Designation Maximum Density Expected Density Percent Residential Percent of Potential Low Density Residential 7 du/ac 7 du/ac 100% 100% Medium Density 12 du/ac 8.5 du/ac 100% 71% Residential High Density Residential 30 du/ac 19.8 du/ac 100% 66% Mixed Use Residential/ Commercial 25-30 du/ac (min/max) 30 du/ac 67% 67% Mixed Use-High Residential/ Commercial 40-60 du/ac (min/max) 48 du/ac 75% 75% Source: City of Rosemead General Plan Land Use Element, 2010 du/ac = dwelling units per net acre Mixed-Use Development Experience Since 2008 Since the introduction of mixed-use designations in the City’s 2008 General Plan update (revised 2010) and the adoption of the Garvey Avenue Specific Plan in 2018, developers have filed applications for a total of 12 mixed-use projects within Rosemead. Of these proposed projects, detailed in Table 44, two have been constructed, two are under construction, one is in building plan check, two have submitted entitlements, two have submitted GASP site plan reviews, two have expired, and one has been withdrawn. The average density of the 12 proposed projects is approximately 55.33 units per acre. This average falls between the effective densities of 20 and 60 units per acre that would result, respectively, from the development of sites designated mixed-use and mixed-use high density in the General Plan at their maximum densities and required land use ratios. Thus, the realistic densities assumed for mixed-use sites are appropriate and reflect market trends. Furthermore, the development standards for the Mixed-Use Development Overlay zone will help to ensure that projects achieve the densities assumed in the adequate sites inventory. The residential land use ratios used in the inventory (67 percent residential for sites designated Mixed Use Residential/ Commercial; 75 percent residential for sites designated Mixed Use High Density Residential Commercial) are requirements of the zone. Additionally, the zone requires minimum densities of 25 units per acre for Mixed Use Residential/Commercial (MU1) projects, and 40 units per acre for Mixed Use High Density Residential/Commercial (MU2) projects. The City Council can approve minor deviations from these standards [RMC §17.74.050(C)(2)]. If the realistic densities assumed in the inventory are applied to only the residential portion of the site, the effective densities of MU1 and MU2 sites (total number of units divided by total site area) will be 20 and 45 units per acre, respectively. 64  Housing Resources Table 44 Mixed-Use Project Proposals: Rosemead Location Lot Size (acres) Units Affordable Units Residential Density Status 1. 9048 Garvey Ave 2.52 68 n/a 27 du/ac Constructed - Received Certificate of Occupancy 2. 8479 Garvey Ave 0.73 28 7 low income 39 du/ac Constructed - Received Certificate of Occupancy 3. 8449 Garvey Ave 0.85 35 6 low income (may eliminate) 41 du/ac Under Construction (Modification Submitted) 4. 8408 Garvey Ave 1.15 46 7 low income 40 du/ac Under Construction 5. 7801-7825 Garvey Ave 1.14 60 n/a 75 du/ac In Building Plan Check 6. 3001 Walnut Grove Ave 1.06 42 7 low income 40 du/ac Entitlements Approved 7. 8002 Garvey Ave 1.61 62 n/a 62 du/ac Entitlements Submitted (Plans are being revised) 8. 7419-7459 Garvey Ave 3.68 378 n/a 70 du/ac GASP Site Plan Review 9. 3035 San Gabriel Blvd 2.02 144 n/a 71 du/ac GASP Site Plan Review 10. 3862 Rosemead Blvd and 9016 Guess St 1.04 38 3 moderate income 37 du/ac Expired 11. 3212-3232 Del Mar Ave 1.28 36 4 moderate income 28 du/ac Expired 12. 9400-9412 Valley Blvd 0.54 38 n/a 70 du/ac Canceled (Applicant Withdrew Application) Source: City of Rosemead General Plan Community Development Department Anticipated Affordability of Units on Inventoried Sites All sites in exclusively single-family and multi-family residential zones are considered suitable for moderate-income and above-moderate-income housing, as these sites are simply too small to support projects of 30 or more units that typically accommodate lower-income households, except through the addition of ADUs and JADUs as discussed in Section 4.D below. All lower-income units contained in the inventory, except those with a zoning designation of P-D Planned Development, are anticipated on sites designated for or zoned with an overlay for residential/commercial mixed-use development. The affordability of units on these sites has been calculated according to a ratio that assumes mixed-income development, as these sites are expected to attract market-rate as well as affordable housing developers. Zones accommodating each income category, which are determined based on allowed development densities, are listed below in Table 45. Table 45 Income Categories and Assumed Density/Zone Ranges Income Category Potential Assumed Density and Zone Range Above Moderate R-1 (0 - 7 units per acre) R-2 (0 – 12 units per acre) GSP-MU (0 – 80 units per acre with community benefits) GSP-R/C (0 – 30 units per acre with community benefits) MU-R/C: RC-MUD Overlay (25 – 30 units per acre) MU High-R/C: RC-MUD Overlay (40 - 60 units per acre) FCMU Overlay (40 - 80 units per acre with community benefits) Moderate R-2 (0 – 12 units per acre) R-3 (0 – 30 units per acre) P-D (0 – 12 units per acre) GSP-MU (0 – 80 units per acre with community benefits) GSP-R/C (0 – 30 units per acre with community benefits) MU-R/C: RC-MUD Overlay (25 – 30 units per acre) Low/Very Low FCMU Overlay (40 - 80 units per acre with community benefits) MU High-R/C: RC-MUD Overlay (40 - 60 units per acre) Rosemead 2021-2029 Housing Element Housing Resources  65 B. Active Development Projects The City of Rosemead continues to experience new development in part due to its proactive creation of new residential and mixed-use development opportunities through adoption of new zoning tools and the Garvey Avenue Specific Plan. “Projects Under Construction” and “Projects Approved” represent sites and housing units that are counted toward 5th Cycle Housing Element goals. “Projects in the Pipeline” describes projects within the City’s entitlement or building plan check process but have not obtained a building permit as of July 1, 2021. Because these projects have development proposals being considered by the City, the potential units associated are considered likely to redevelop during the planning period and can be included within the sites inventory without additional justification. Additional details regarding pending development projects are included as Table C-1in Appendix C. Projects under Construction 1. Garvey Earle Plaza - 8449 Garvey Avenue • Four-story mixed-use development with 7,520 square feet of commercial development and 35 residential apartment units (modification to the number of proposed low- income units is under discussion). • Groundbreaking took place in January 2020. Projects Approved 1. The Olson Company - 3133-3134 Willard Avenue • 31-unit residential townhome development. Units range in size from 1,232 square feet to 1,698 square feet with six floor plans. • Construction plans were approved in May of 2021. Permits are expected to be issued in September of 2021. are expected to be submitted into Building and Safety Plan Check in 2021. 2. Garvey Del Mar Plaza - 7801 Garvey Avenue • Four-story mixed-use development with 15,903 square feet of commercial development and 60 residential apartment units located in the Garvey Avenue Specific Plan. • Construction plans were approved in August of 2020; however, the applicant is proposing to revise the plans.is expected to begin construction in 2021. Projects Underway 1. Rosemead Garden Villa - 3035 San Gabriel Boulevard • Six-story mixed-use development with 67,007 square feet of commercial development and 161 residential condominiums located in the Garvey Avenue Specific Plan. • Project is currently in GASP Site Plan Review. 2. Taiwan Center Mixed-Use Development – 3001 Walnut Grove Avenue • Four-story mixed-use development with 18,646 square feet of commercial development and 42 residential condominiums (7 proposed as low-income). • The developer is required to enter into an affordable housing agreement with the City. The developer will deed restrict seven units for low-income households for a minimum of 55 years. • Entitlement applications were approved in September of 2021. The project is expected to submit construction drawings for Building Plan Check in 2022. 66  Housing Resources 3. Contai Mixed-Use Development - 8002 Garvey Avenue • Six-story mixed-use development with 63,786 square feet of commercial development and 116 residential condominiums located in the Garvey Avenue Specific Plan. • Project is currently in GASP Site Plan Review. 4. Residential Condominium Project- 4316 Muscatel Ave. • Ten two-story residential condominiums. Each unit will total 1,200 square feet with two different floor plans. • Entitlement applications have been submitted and currently in review. C. Vacant Land As an older community, Rosemead is highly developed and the amount of vacant land is limited, consisting primarily of individual scattered lots and sites that were previously developed but are now vacant due to buildings and improvements being removed. Large tracts of vacant residentially zoned land do not exist in the City. An aerial survey via Google Earth Pro and a review of current Los Angeles County Assessor data of existing land uses in residentially and mixed-use zoned areas of the City conducted in spring 2020 identified 54 vacant parcels, totaling 36.86 acres. Of these, 43 parcels (31.89 acres) are located in mixed- use zones that allow a residential component as part of a comprehensive commercial development. Appendix C includes Table C-1 that describes each site in terms of location, size, potential affordability, and land use designations. Assuming the realistic residential densities shown in Table 47, a total of 1,091 units could potentially be developed on the 54 vacant sites. Non-Vacant Sites Besides vacant land, another major component of this land resources inventory consists of a selection of properties that are most likely to be redeveloped at the various income levels over the 6th Cycle. For the purposes of identifying sites, this analysis considered existing residentially zoned, specific plan zoned, overlay zoned, or mixed-use zoned parcels that allowed for residential development based on the permitted densities within those zones. The overlay zoned sites are zoned RC-MUDO or FCMU Overlay with underlying C-3 (Medium Commercial), C-4 (Regional Commercial), CBD (Central Business District), or P-D (Planned Development zoning, and consist mainly of underdeveloped commercial and industrial properties with low-value or marginal uses, though some sites include older residential structures, as well. Appendix C provides parcel numbers, zoning and General Plan designations, information on existing and potential uses, and includes maps of all identified sites. These sites were originally identified and analyzed in a spring 2020 aerial survey using Google Earth Pro and using current Los Angeles County Assessor data. All of the parcels and sites identified in Appendix C remain available to assist in meeting the City’s 2021-2029 RHNA allocation. In all, 332 sites have been identified, covering approximately 165.86 acres and having capacity for an estimated 5,404 units. Of these, 1,783 units are considered affordable to lower-income households, while the remaining 3,622 units are considered suitable for moderate-income and above-moderate-income housing. A precise breakdown of the number and affordability of potential units on each site and individual parcels may be found in Appendix C. These numbers have been derived by assuming a conservative 70 percent build-out potential based upon allowable density and for the lower-income sites, Rosemead 2021-2029 Housing Element Housing Resources  67 reflects the fact that the zoning density capacity meets the metropolitan jurisdiction “default” density for lower-income housing suitability as defined by Government Code §65583.2(c)(3)(B)(iv), but can be expected to attract market-rate development, as well. As the City relies on non-vacant sites to accommodate for more than 50 percent of its RHNA for lower- income households, the non-vacant site’s existing use is presumed to impede additional residential development. However, the sites selected for inclusion in the inventory have been chosen because they represent the best opportunities to add significant numbers of units to the City’s housing stock, possess the highest potential for becoming available for residential development over the 8-year planning period. Parcels were generally selected if they were developed with aging structures over 40 years old and/or occupied by marginal, low-value or low-intensity non-residential uses. Age of structure is a significant factor in determining suitability of nonvacant sites. Building deterioration, lack of adequate property maintenance issues, as well as other market-driven factors contribute to the likelihood that many existing non-residential uses being eliminated. The sites inventory analysis has identified approximately 115 sites that contain structures which are 40 years or older. These sites are anticipated to accommodate 1,278 units lower-income units. Moreover, as mentioned, a majority of the non-vacant sites are located in mixed use overlay zones or specific plan areas and consist mainly of underdeveloped commercial and industrial properties with low-value or marginal uses. As indicated by reported development trends described in the Background Information section of this Housing Element, existing non-residential developments consisting of single commercial or industrial uses continue to decline whereas development of mixed or blend developments are increasing, especially along major thoroughfares in the City. It is anticipated that development in mixed use overlay zones or specific plan areas will feature and integrate residential development where existing commercial and industrial uses are present, thus providing for additional housing capacity on sites that contain neighborhood-serving resources and jobs. As the City relies on non-vacant sites to accommodate for more than 50 percent of its RHNA for lower- income households, the non-vacant site’s existing use is presumed to impede additional residential development. However, the sites selected for inclusion in the inventory have been chosen because they represent the best opportunities to add significant numbers of units to the City’s housing stock, possess the highest potential for becoming available for residential development over the 8-year planning period. Parcels were generally selected if they were developed with aging structures over 40 years old and/or occupied by marginal, low-value or low-intensity non-residential uses. Age of structure is a significant factor in determining suitability of nonvacant sites. Building deterioration, lack of adequate property maintenance issues, as well as other market-driven factors contribute to the likelihood of many existing non-residential uses being eliminated. The sites inventory analysis has identified approximately 115 sites that contain structures which are 40 years or older. These sites are anticipated to accommodate 1,278 units lower-income units. Additionally, parcels were considered for inclusion based on whether they can be consolidated with adjacent properties to form large, contiguous development sites. Many (though not all) properties were chosen because they exhibit one or more signs of physical blight under State Community Redevelopment Law. While redevelopment funds are no longer available to assist in site assembly and environmental remediation, the presence of blight may qualify these properties for financial assistance under other State and federal programs such as CDBG and HOME. Physical blight conditions observed under Community Redevelopment Law (Health and Safety Code §33031(a)) include: • Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions may be caused by serious building code violation, serious dilapidation and deterioration caused by 68  Housing Resources long-term neglect, construction that is vulnerable to serious damage from seismic or geologic hazards, and faulty or inadequate water or sewer utilities. • Conditions that prevent or substantially hinder the viable use or capacity of buildings or lots. These conditions may be caused by buildings of substandard, defective, or obsolete design or construction given the present general plan, zoning, or other development standards. • Adjacent or nearby incompatible land uses that prevent the development of those parcels or other portions of the project areas. • The existence of subdivided lots that are in multiple ownership and whose physical development has been impaired by their irregular shapes and inadequate sizes, given present general plan and zoning standards and present market conditions. With the aforementioned efforts including new and existing policies and programs to facilitate development of non-vacant site, the City does not consider site’s existing uses as significant impediments to additional residential development during the period covered by the housing element. All sites being extensively developed with residential, commercial, and industrial uses, as well as public facilities, are fully served by the City’s road and utility networks. It is anticipated that minor street, water, sewer, and other improvements will be required to serve the sites when developed at higher intensities, but no need for major new infrastructure is anticipated. Sites identified for lower income categories in Appendix C that are less than 0.5 acres in size are consolidated into clustered sites that comprise at least 0.5 acres. Challenges posed by smaller parcels are discussed below. Small Sites and Lot Consolidation Many of the non-vacant sites identified consist of multiple smaller parcels with different owners, and their development within the planning period will depend on whether they can be consolidated. Because of the lack of a sufficient number of large residential parcels under single ownership elsewhere in Rosemead, these sites represent the best development opportunities to accommodate the City’s RHNA fair-share allocation within the planning period. The following list includes recently approved residential mixed-use projects which consist of consolidated sites comprising of smaller parcels. These projects are in various stages in the development process and serve to demonstrate the how prevalent lot consolidation is in the City, especially in areas identified as lacking in housing opportunities. • 7419-7459 Garvey Avenue: Mixed-use development comprised of seven (7) parcels with 361 dwelling units and 17, 270 sq. ft. of commercial. Currently in plan check. • 7539-7545 Garvey Avenue: Mixed-use development comprised of two (2) parcels with 75 dwelling units and 6,346 sq. ft. of commercial. Project currently in plan check. • 7801-7825 Garvey Avenue, 3012 Del Mar Avenue, 3017 Brighton Avenue: Mixed-use development comprised of six (6) parcels with 92 dwelling units and 15,945 sq. ft. of commercial. Project currently in plan check. • 7867-8001 Garvey Avenue, 7924 Virginia Street, 7938 Virginia Street, 3033 Denton Avenue: Mixed-use development comprised of ten (10) parcels with 219 dwelling units and 50,100 sq. ft. of commercial. Project currently in plan check. Rosemead 2021-2029 Housing Element Housing Resources  69 • 8002-8026 Garvey Avenue, 2742-2746 Kelburn Avenue, 2743 Falling Leaf Avenue: Mixed-use development comprised of 11 parcels with 109 dwelling units and 11,542 sq. ft. of commercial. Project currently in plan check. • 8408-8416 Garvey Avenue, 2736-2746 Delta Avenue: Mixed-use development comprised of five (5) parcels with 46 dwelling units and 11,860 sq. ft. of commercial. Project currently under construction. • 8449 Garvey Avenue, 3014 Earle Avenue: Mixed-use development comprised of two (2) parcels with 26 dwelling units and 15,600 sq. ft. of commercial. Project currently under construction. As part of the City’s Garvey Avenue Specific Plan and the FCMU Overlay, lot consolidation incentives are provided to property owners that in turn allow for increased development potential. In addition, the City is prepared to take further significant steps to ensure lot consolidation takes place as part of its larger efforts to monitor the adequate sites inventory and facilitate the buildout of the identified sites. The City’s efforts to facilitate lot consolidation will include the following actions: • Opportunity sites marketing and outreach: The City will make a list of prime opportunity mixed-use sites through the City’s website. The list will include information on parcel size, zoning, and existing uses, as well as highlighting opportunities for lot consolidation. • Technical assistance: The City will provide technical assistance to expedite the site acquisition, plan review and entitlement process, in addition to facilitating negotiations between the property owner and interested buyers. • Expedited processing: As part of the opportunity sites program, the City will establish expedited permitting procedures for lot consolidation. • Outreach to real estate community: Finally, the City will establish an outreach program to local real estate brokers and the West San Gabriel Valley Association of Realtors to increase awareness of lot consolidation opportunities. More information about the Opportunity Sites program is available in Section 5.B, Housing Programs of the Housing Element. Accessory Dwelling Units (ADUs) Consistent with State law, accessory dwelling units are permitted in all residential and multi-family zones, and the City supports ADUs (including Junior Accessory Dwelling Units) to increase housing stock. To estimate the number of ADUs that can be counted toward the City’s RHNA inventory, the City is using the HCD-sanctioned argument to use the last three years (January 1, 2018 to present) as the benchmark for future ADU production. Thirty-eight ADUs were issued building permits in 2018, followed by 62 in 2019 and 44 in 2020. We can assume a projection of 48 ADUs each year through the 2021-2029 planning period, based on the average ADU production from 2018 to 2020. This equates to 384 ADUs. These ADUs are currently divided among each income category in accordance with the ADU Affordability Memo developed by SCAG, which provides affordability rates pre-certified by HCD, as shown on Table 46. 70  Housing Resources Table 46 ADU Affordability Methodology Applied to the City of Rosemead LA County Rosemead ADUs Extremely Low 15.0% 58 Very Low 8.5% 33 Low 44.6% 171 Moderate 2.1% 8 Above Moderate 29.8% 114 Source: SCAG and City of Rosemead D. Potential Housing Growth As previously discussed, the City of Rosemead is a highly urbanized community that has few vacant parcels. As such, most of the opportunities for affordable housing growth lie in supporting continued infill and ADU development, along with the recycling of currently underutilized properties at higher densities, in accordance with the City’s new mixed use zoning regulations. In total, vacant sites and potentially recyclable sites, plus ADU projections, account for a maximum potential of 9,915 units at various income levels (with a realistic capacity of 6,879 units), which substantially exceeds the City’s RHNA allocation of 4,612 units as shown in Table 47. E. Potential Strategies In addition to the sites included in the City’s Sites Inventory summarized in Table 47 and detailed in Appendix C, the City has the option to pursue additional sites suitable for residential development through rezoning opportunities on City Identified Parcels as well as Congregational Sites, as follows: • City Identified Parcels. The City identified a number of parcels that may provide opportunity to accommodate additional housing, if rezone efforts were undertaken. It was assumed that these parcels would fall under the Residential/Commercial-Mixed-Use, Design Overlay (RC-MUDO) at 30 dwelling units per acre (du/ac), or a new Mixed-Use Creative Industrial (MU-CI) zone with a maximum of 32 du/ac; the MU-CI would only apply to that portion of the City south of Garvey Avenue and west of Stingle Avenue. • Congregational Sites. Congregational sites were identified by the City and project stakeholders that have potential for accommodating very-low and low-income housing. Recent State law has provided flexibility for congregational sites to accommodate housing on their parking lots. Such parcels could have a minimum density of 16 du/ac and maximum of 32 du/ac. Because the City already has a site inventory that provides opportunity for 149.2 percent of its RHNA allocation, the additional potential sites are not included in the City’s inventory at the time of the 6th Cycle Update. Rosemead 2021-2029 Housing Element Housing Resources  71 Table 47 Housing Projections, 6th Cycle Housing Element Update: Rosemead Area # Area Name/ Unit Type Maximum Units Realistic Capacity4 Income - VL/L Income - Mod Income - Above % of RHNA (at 70%) Vacant Vacant Sites 1,857 1,091 232 286 572 23.7% Non-Vacant Non-Vacant Sites 7,674 5,404 1,783 991 2,631 117.2% Accessory Dwelling Units ADU Accessory Dwelling Units2 384 384 262 8 114 8.3% Grand Totals3 9,915 6,879 2,277 1,285 3,317 149.2% 1 RHNA Required Sites (4,612) = Very Low/Low (1,792), Moderate (686), Above Moderate (2,134). 2 Assumed ADU production is 48 per year based on average from previous 3 years. 3 Nets out existing residential units located on properties per County Assessor Data Set; also includes rezoned sites. 4 For mixed-use, assumes 65% residential building per City Standards at 70% of max density, except for pending projects where actual proposed units are indicated. F. Financial Resources A variety of potential funding sources are available for housing activities in general. However, due to both the high costs of developing and preserving housing, and limitations on both the amount and uses of funds, additional funding sources may also be required. The following describes in greater detail the primary funding sources currently used in Rosemead: CDBG, HOME, and LACDA’s tenant-based assistance program, and key State funding sources. These funding sources can potentially be used to assist in the preservation, improvement, and development of affordable housing in Rosemead. CDBG Funds: Through the CDBG Program, HUD provides funds to local governments for funding a wide range of community development activities. The City receives approximately $738,492 annually in CDBG funds from HUD, which it utilizes to fund code enforcement, residential and commercial rehabilitation, economic development, infrastructure improvements, and social service programs. HOME Funds: The City is a participating jurisdiction in the HOME Investment Partnership (HOME) Program administered by HUD. Presently, the City annually receives approximately $337,512 in HOME funds from HUD. These funds can be used for a range of affordable housing activities including acquisition, rehabilitation, first-time homebuyer assistance and rental assistance. To date the City has allocated its HOME funds to assist with the rehabilitation of homes owned by low-income households, down payment assistance for first-time homebuyers, and the acquisition of homes through Community Housing Development Organizations (CHDOs). LACDA Housing Assistance Division Program): The Los Angeles County Development Authority (LACDA) serves the City of Rosemead and provides Section 8 Rental Assistance Vouchers to residents. The program increases housing choices for very-low income households by enabling families to afford privately owned rental housing. The LACDA generally pays the landlord the difference between 30 percent of a household’s income and the fair market rent for a unit. As of December 2020, according to LACDA, there are 333 households receiving tenant-based rental assistance in Rosemead. Former Redevelopment Agency Housing Set-Aside: Until the dissolution of Community Redevelopment Agencies under AB X1 26, Redevelopment Housing Set-Aside funds were one of the primary sources of financing used for preserving, improving and developing affordable housing. As of 2013, Redevelopment Housing Set-Aside funds are no longer available for agency use, as all tax increment 72  Housing Resources that previously went to the Agency is diverted to the underlying taxing entities under AB X1 26. A portion of this tax increment is deposited in the City of Rosemead’s general fund. The former Redevelopment Agency’s Operating and Assistance Agreement with RHDC for the two senior apartment complexes continues as part of the City’s Recognized Obligation Payments Schedule (ROPS); this is the only portion of the Housing Set-Aside funds that remains dedicated to low- and moderate-income housing activities in the City of Rosemead. Senate Bill (SB) 2/LEAP Grants: In 2017, Governor Jerry Brown signed a 15-bill housing package aimed at addressing the State’s housing shortage and high housing costs. Specifically, it included the Building Homes and Jobs Act (SB 2, 2017), which establishes a $75 recording fee on real estate documents to increase the supply of affordable homes in California. To date, the City has been awarded $160,000 under the SB 2 grant program and $150,000 under the LEAP grant program. Because the number of real estate transactions recorded in each county will vary from year to year, the revenues collected will fluctuate. SB 2 PLHA funds can be used to: • Increase the supply of housing for households at or below 60% of AMI • Increase assistance to affordable owner-occupied workforce housing • Assist persons experiencing or at risk of homelessness • Facilitate housing affordability, particularly for lower and moderate-income households • Promote projects and programs to meet the local government’s unmet share of regional housing needs allocation G. Energy Conservation As residential energy costs continue to rise, increasing utility costs reduce the affordability of housing, thus aggravating the City’s current shortage of affordable units. The City has many opportunities to directly affect energy use within its jurisdiction. The City adopted the 2019 California Green Building Standards Code as amended by Title 31 Los Angeles County Green Building Standards Code (adopted November 26, 2019, by the Los Angeles County Board of Supervisors), together with their appendices. The California Green Building Standards Code—Part 11, Title 24, California Code of Regulations— known as CALGreen, is the first-in-the-nation mandatory green building standards code. The regulations address energy efficiency along with other measures designed to have a positive environmental impact and reduce greenhouse gas emissions. Green building standards applies to the planning, design, operation, construction, use, and occupancy of every newly constructed building or structures, and also applies to most additions and alterations to existing buildings, including residential structures. In addition to required compliance with the Building Code and Title 24, the City sets forth goals and policies that encourage the conservation of non-renewable resources in concert with the use of alternative energy sources to increase energy self-sufficiency. In large part, energy savings and utility bill reductions can be realized through the use of various energy design standards, including glazing, landscaping, building design, cooling/heating systems, weatherization, efficient appliances, efficient lighting and load management. Though Rosemead is predominantly developed, there is opportunity for energy savings in existing housing as most residential structures can be retrofitted with conservation measures that nearly provide the energy savings achieved with new construction. Many can also be retrofitted with passive design measures, such as the addition of solar units and south facing windows. The City requires a site plan review of all multiple-family developments and subdivisions. Through this review process, the City promotes energy conservation methods of design and orientation of the housing Rosemead 2021-2029 Housing Element Housing Resources  73 units. It is a specific goal of the City that all developments of a public or private nature are conscious of the need to conserve energy in all forms through the use of good site planning techniques. Energy conservation can also be promoted by locating residential developments in proximity to schools, employment centers, public transit, and services. The City’s Land Use Element and Housing Element make concerted efforts to distribute residential areas in ways that make them accessible to these various amenities and services and are thus more likely to reduce vehicular traffic. Due to the fact that the City strives for a balanced community, most services and amenities are located within a quarter mile of residential areas. Conservation of energy is a goal expressed in the City’s Resource Management, Circulation, Land Use, and Air Quality Elements. In addition, the SoCalGas Company which supplies natural gas to Rosemead households, offers assistance programs, rebates and incentives to increase energy efficiency and savings. More information on these and other incentive programs is available from SoCalGas Company at https://www.socalgas.com/save- money-and-energy. Southern California Edison (SCE) offers various energy conservation services, rebates, incentives and savings suggestions. For the latest programs, individuals should visit the SCE website at https://www. sce.com/residential/rebates-savings. SCE also offers bill assistance programs designed to help eligible low-income households. 74  Housing Resources This page left intentionally blank. Rosemead 2021-2029 Housing Element Housing Plan  75 5. HOUSING PLAN In accordance with State Housing Element law, this section presents a statement of goals, policies and priorities. The statement is intended to convey to the community at large Rosemead’s plan to provide a variety of housing types for all economic segments of the community. In addition, the goals, policies and priorities also serve as a framework or foundation for the evolution, initiation and implementation of specific programs and actions to improve the existing housing stock, produce new housing, and provide financial assistance and to mitigate the adverse impacts of economic and market constraints. In preparing this updated Housing Element, the City reexamined the goals and policies that gave direction to the City’s housing programs, as well as the progress that has been made toward their attainment. The housing goals that were adopted by the City Council in 2014 are responsive to the State housing goals and continue to reflect the desires and aspirations of the community. Hence, through the adoption of this updated Housing Element, the City of Rosemead has reaffirmed its commitment to these goals, with modifications where needed to reflect new State laws and changing conditions. The updated Housing Element also includes additional supporting policies and an extensive section on Fair Housing. In establishing its current objectives and programs, the City considered its experience over the past seven- year period. Based on this experience, certain programs contained in the prior Housing Element have been deleted, combined, or modified while some new programs have been added. Programs that were initiated and continue to be relevant to the City’s overall housing goals and objectives, have been carried over and their implementation will be on-going during the current planning period. Finally, since the quantified objectives contained in this Housing Element are based on empirical data, they are considered to be realistic and attainable, and reflect the economic conditions and funding realities prevailing in southern California at the start of the current planning period. An accounting of the City’s progress toward implementing programs and quantified objectives is provided in Appendix A. A. Goals and Policies Goal 1: Protect existing stable, single-family neighborhoods throughout the City. Policy: Encourage the rehabilitation of existing substandard units to bring them up to code and extend their useful life. Policy: Encourage the construction of new single-family attached and detached dwellings using zoning and other mechanisms. Policy: Preserve existing residential areas by using design measures to buffer these sensitive land uses from adjacent dissimilar uses. Policy: Existing single-family units that require demolition must be replaced with residential units that will be compatible in character to the surrounding neighborhood. Policy: Conserve existing mobile home parks that are economically and physically sound, and implement relocation assistance guidelines for parks that are converted. Policy: Promote the development of Accessory Dwelling Units and Junior Accessory Dwelling Units to provide needed housing and support Fair Housing goals. 76  Housing Plan Goal 2: Encourage the development of a range of housing types in a range of prices affordable to all Rosemead residents. Policy: There shall be a variety of housing types and prices to accommodate a wide range of housing needs and tastes. Policy: Encourage the maintenance of existing housing opportunities while promoting the development of new housing opportunities for the City’s elderly. Policy: Discourage the conversion of apartments to condominiums by requiring converted buildings to be brought into full compliance with the existing code. Policy: Encourage housing opportunities within the mixed-use residential/commercial overlay districts to provide needed infill development opportunities. Policy: Provide zoning regulations, permit streamlining, and other incentives to facilitate affordable housing and economic development goals. Policy: Continue to foster partnerships with community organizations, religious institutions, non- profits, industry groups and other stakeholders to further opportunities for affordable housing. Goal 3: Encourage the maintenance and upgrading of existing housing stock to ensure a decent, safe, and sanitary home for all Rosemead residents. Policy: A range of housing opportunities shall be provided to existing and future residents of the City of Rosemead to help ensure that housing is available to all socio- economic segments and special need groups within the community. Policy: Low and moderate-income housing shall be of equal design, construction, and maintenance as that of more expensive housing in the City of Rosemead. Policy: Continue to enforce Municipal Code provisions relating to the use and development of property. Goal 4: Support federal and State laws that prohibit discrimination of protected classes under State and federal fair housing laws. Policy: Continue to cooperate with and support the efforts of the Southern California Housing Rights Center to provide information and counseling pertaining to fair housing and landlord-tenant issues. Policy: The City of Rosemead will continue to support and assist in enforcing the provisions of the federal and State Fair Housing laws. Policy: Affirmatively further fair housing by taking meaningful actions to combat discrimination, help overcome patterns of segregation, and foster inclusive communities. Rosemead 2021-2029 Housing Element Housing Plan  77 B. Housing Programs This section of the housing plan identifies the programs and actions the City will implement to achieve the goals and housing policies during the 2014-2021 planning period. The five housing program strategies defined for the City of Rosemead include: • Preservation and Enhancement of Existing Housing Stock • Production of Affordable Housing • Rental Assistance • Increased Homeownership Opportunities • Equal Housing Opportunity and Prevention of Discrimination Program Strategy: Preservation and Enhancement of Existing Housing Stock 1. Owner Occupied Rehabilitation Program To aid in the maintenance and preservation of the City’s exiting affordable housing stock and to promote, increase, and maintain homeownership for low- and moderate-income households, the City provides a variety of programs through federal HUD CDBG and HOME funding. Community Development Block Grant (CDBG) Programs CDBG is an annual grant to cities to assist in the development of viable communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally to persons of low-and moderate-income. Programs and funds supporting housing rehabilitation include: • Handyman Grant Program – up to $15,000 (62 years and older; or handicapped/disable homeowner) Grants are available to senior citizens 62 years or older and disabled citizens for up to $15,000, at no cost to the homeowner, for repairs related to interior and exterior code deficiencies and general home improvements. • Emergency Grant Program – up to $2,000 (62 years and older) Emergency grants are available to all eligible income-qualified applicants. The maximum emergency grant is $2,000 for corrections to emergency code deficiencies that constitute an immediate health-safety issues. • Lead Testing/Abatement (at no cost to the homeowner) Persons eligible for the Handman or Emergency Grant program will also qualify for lead testing and abatement. HOME Investment Partnership (HOME) Programs HOME funds are awarded annually as formula grants to participating jurisdictions. The program’s flexibility allows local governments to use HOME funds for grants, direct loans, loan guarantees, or other forms of credit enhancement, rental assistance, or security deposits. HOME is designed to create affordable housing to low-income households. 78  Housing Plan Owner Occupied Rehabilitation Loan Program The City provides low interest (0% to 3%) deferred payment loans to low- and moderate-income homeowners who own and occupy their homes and need financial assistance to make repairs and improvements. The loan is paid back through the sale, transfer of ownership, or refinancing of the home. Objective: Preserve the City’s existing affordable housing stock a) Continue to implement programs through federal funding. b) Update the City website periodically to address housing rehabilitation programs. c) Handyman Grant and Emergency Grant Program are both subsets of the Grant Housing Rehabilitation Program with a combined target of ten (1) units to be rehabilitated. For the Owner Occupied Rehabilitation Loan Program has a target of five (5) units to be rehabilitated. Agency: City of Rosemead Financing: CDBG, HOME Time Frame: Annually 2. Down Payment Assistance Program Depending on the availability of funds, the City assists low-income residents with the purchase of their first home. The assistance is in the form is a silent second loan and is available to low income families who have not owned a home within the previous three years. The amount of the loan will vary depending on the value of the house to be purchased to assist the homebuyer in achieving a 20 percent down payment. The maximum allowable loan is currently $70,000, but the City anticipates increasing the maximum loan amount in the next fiscal year. Objective: Provide new homebuyers with loans for down payment of homes with a target of eight (8) homeowners assisted over the 2021-2029 planning period. Agency: City of Rosemead Financing: HOME Time Frame: Annually Program Strategy: Production of Affordable Housing 3. Infill Housing Development and Site Recycling Vacant Lot Development This program would allow the replacement of an existing housing unit or the development of a new unit(s) on an existing vacant lot. The City will provide appropriate assistance and facilitate the development review and approval process to ensure that regulatory constraints to infill development are minimized. Accessory Dwelling Units The State legislature has identified that the California housing shortage is a significant statewide issue. The State believes that increasing the development of Accessory Dwelling Units (ADUs and JADUs) is one approach to address the housing crisis. Over the last couple of years, the State has amended ADU laws and on September 8, 2020, the City amended the ADU code to comply with State provisions in effect at Rosemead 2021-2029 Housing Element Housing Plan  79 the time. Changes to ADU laws effective January 1, 2021, further reduce barriers to accommodate the development of ADUs and junior accessory dwelling units (JADUs). Mixed Use Development Opportunities for residential development in the City fall into one of two categories: vacant land and sites where there is a potential to recycle or increase densities. Since the introduction of mixed-use designations in the City’s 2008 General Plan update (revised 2010) and the adoption of the Garvey Avenue Specific Plan in 2018, developers have filed applications for a total of 12 mixed-use projects within Rosemead. The City of Rosemead is now considering a Freeway Corridor Mixed-Use Overlay zone in targeted areas in and around Interstate 10. Objective: Increase housing stock and encouraging development on underutilized sites a) Amend the Zoning Ordinance for consistency with State law requirements for ADUs within one year from adoption of the Housing Element. b) Incentivize ADUs through providing information on State ADU law on the City’s web page and providing technical assistance at the City’s Zoning Counter by December 2022. c) Provide technical assistance at the City’s Zoning Counter to facilitate infill and affordable housing development. d) Adopt the Freeway Corridor Mixed-Use Overlay Zone by December 2021. Agency: City Financing: For projects: CDBG, HOME, project-specific State and federal loans and grants, as necessary and appropriate. For code amendments and operational improvements: City General Fund Time Frame: a) Within 1 year from adoption of the Housing Element b) By December 2022 with updates as needed c) Ongoing d) By December 2021 4. Land Assemblage and Write-Down Rosemead may use CDBG, HOME and/or other funds to write-down the cost of land for development of low and moderate-income housing. The intent of this program is to reduce the land costs so that it becomes economically feasible for a private developer to build units that are affordable to low- and moderate-income households. However, these funds will depend on the resources available to the City and allocation decisions will be made on a project-by-project basis. The City will promote lot consolidation by highlighting those properties on its list of opportunity sites for housing development. The list will include two or more adjoining properties zoned for residential uses that are available for sale and are candidates for consolidation. The City will provide technical assistance to interested buyers/developers and expedite the permitting procedures for mixed-use projects and streamline the process for lot consolidation. Available funding sources to write-down land costs will be identified on the City’s Opportunity Sites list. This list will be available at the Planning Division counter and on the City’s website. 80  Housing Plan Objective: a) Provide funding for developments with at least 20 percent of the units for low- and moderate-income households b) Prepare an Opportunity Sites list that includes available funding sources and make them available for public review at the Planning counter and on the City’s website Agency: City Financing: CDBG, HOME, project-specific State and federal loans and grants as appropriate Time Frame: a) Funding provided annually 2021-2029, as available b) Annual updates of the Opportunity Sites list and funding information 5. Community Housing Development Organization (CHDO) Construction Program A CHDO is a 501(c) nonprofit, community-based service organization whose primary purpose is to provide and develop decent, affordable housing for the community it serves. By law, each HOME- participating jurisdiction must set aside at least 15 percent of its HOME allocation for use by a CHDO for the development of affordable housing. The City will also help CHDO through CDBG funds, as needed and if funds are available. The City will help seek opportunities with CHDO to facilitate the development and improvement of low income housing. Objective: Increase affordable housing stock. Build 10 new housing units and facilitate the purchase of 20 homes from land acquired. Agency: City, RHDC Financing: HOME Time Frame: Annually 6. Adequate Sites Inventory and Monitoring for No Net Loss Rosemead has been allocated a Regional Housing Needs Allocation (RHNA) of 4,612 units (1,154 very low, 638 low, 686 moderate, and 2,134 above moderate). Meeting the housing needs of all segments of the community requires the provision of adequate sites for all types, size, and prices of housing. The City’s General Plan and Zoning Ordinance determine where housing may locate, thereby affecting the supply of land available for residential development. Rosemead is almost entirely developed, and few vacant residentially zoned sites remain in the City. Recent and future residential development relies primarily on the redevelopment of nonvacant properties, particularly along the City’s major corridors where mixed use development is permitted. With units entitled and under review, as well as anticipated ADUs, the City has adequate capacity for its moderate and above moderate income RHNA, with a remaining lower income RHNA of 1,792 units. Vacant and underutilized sites, including three sites for potential rezoning, provide adequate capacity to satisfy the RHNA requirement of 1,792 sites while providing a buffer of 485 units for a total of 2,277 low/very low-income units. The City will rezone up to 2.29 acres within 3 years of the Housing Element adoption to provide up to 72 of the total units. The rezoned sites will meet the requirements of Government Code §65583.2, including but not limited to a minimum density of 20 units per acre, minimum site size to permit at least 16 units on site, and zoned to allow ownership and rental housing by-right in which at least 20 percent of the units are affordable to lower income households. Rosemead 2021-2029 Housing Element Housing Plan  81 Table 48 Rezoning for RHNA Current Zone Proposed Zone Acreage Parcels Potential Lower Income Capacity C-3 Medium Commercial C-3 Medium Commercial/RC-MUDO 0.33 1 0 C-3 Medium Commercial C-3 Medium Commercial/RC-MUDO 0.16 1 0 C-3 Medium Commercial C-3 Medium Commercial/RC-MUDO 1.08 1 0 C-3 Medium Commercial C-3 Medium Commercial/RC-MUDO 3.53 1 0 C-3 Medium Commercial C-3 Medium Commercial/RC-MUDO 0.61 1 19 C-3 Medium Commercial C-3 Medium Commercial/RC-MUDO 1.17 1 37 C-3 Medium Commercial C-3 Medium Commercial/FCMUO 0.47 1 0 GSP GSP-MU 0.25 1 0 GSP GSP-MU 0.70 1 0 M-1 Light Industrial M-1 Light Industrial/RC-MUDO 0.51 1 16 To ensure that the net future housing capacity is maintained to accommodate the City’s RHNA figures and remain in compliance with SB 166 (no net loss), the City will maintain an inventory of adequate housing sites for each income category. This inventory will detail the amount, type, size and location of vacant land, recyclable properties and parcels that are candidates for consolidation to assist developers in identifying land suitable for residential development. If the inventory indicates a shortage of adequate sites to accommodate the remaining regional housing need by income level, the City will identify alternative sites so that there is “no net loss” of residential capacity pursuant to Government Code §65863. Objectives: a) Provide adequate sites to accommodate the City’s entire RHNA allocation. b) Provide information on available sites and development incentives to interested developers and property owners on City website. c) Develop a procedure to track: • Unit count and income/affordability assumed on parcels included in the sites inventory. • Actual units constructed and income/affordability when parcels are developed. • Net change in capacity and summary of remaining capacity in meeting remaining Regional Housing Needs Allocation (RHNA). In addition, the City will make no net loss findings at the time of project approval and require replacement units when required by State law. d) If the housing programs and incentives are not successful in maintaining compliance with SB 166, the City will consider rezoning of religious institution sites or expand existing incentives or propose new incentives, such as providing for priority development processing, or reducing develop- ment fees for projects involving affordable housing within six months of the APR. e) Development on non-vacant sites with existing residential units is subject to replacement requirements, pursuant to AB 1397. The City will amend the Zoning Code to require the replacement of units affordable to the same or lower income level as a condition of any development on a non-vacant site consistent with those requirements set forth in State Density Bonus Law. 82  Housing Plan f) The City will implement the rezoning program as outlined in the table above to accommodate additional housing capacity. Agency: City Manager, Community Development Department Financing: General Fund Time Frame: a) With Housing Element adoption b) Upon Housing Element adoption with annual updates c) By the end of 2022 d) Take corrective action within 6 months after APR reporting of noncompliance with SB 166 e) Within 1 year from adoption of the Housing Element f) Within 3 years from adoption of the Housing Element 7. Water and Sewer Master Plans The City’s water, wastewater, and sewer capacity will remain adequate to accommodate the projected RHNA allocation. However, the City acknowledges that water and sewer services can be major infrastructure constraints to housing production. As a result, the City of Rosemead is committed to developing water and sewer master plans by the end of 2025 to ensure of adequate infrastructure capacity is available throughout the planning period. Master plans are anticipated to analyze existing capacity and maintenance factors as well as estimate future water, wastewater and recycled water facilities that will be necessary to provide adequate services to future residents and business based upon projected growth. Objectives: a) Develop water and sewer master plans to ensure adequate service is available to accommodate future growth, including development of potential RHNA sites. b) Monitor infrastructure capacity and update plans accordingly. Agency: City Financing: Grant funding, General Fund Time Frame: a) Adopt Master Plans by late 2025 b) Bi-annually 8. Opportunity Sites Marketing and Outreach The City’s Community Development Department will maintain a list of economic development opportunity sites within the City on the City’s economic development website. In an effort to promote lot consolidation and housing development, the City will highlight those sites on the opportunities list where two or more adjoining properties are available for sale and consolidation. The City will provide technical assistance to interested buyers/developers of those opportunity sites zoned for residential uses, as well as for mixed- use. Through adoption of the Garvey Avenue Specific Plan and the draft FCMU, the City has established a program that expedites the permitting process for mixed-use development projects and property acquisition process for lot consolidation. The City will continue to update the opportunity sites list as needed. Additionally, the City will establish an outreach program to the various real estate brokers who do business in Rosemead, as well as the West San Gabriel Valley Association of Realtors, to encourage them to contact property owners concerning possible housing development opportunities that involve lot consolidation. As part of this program, the City is in the process of developing a GIS database of available properties that are suitable for development. This will assist further in making property owners aware of opportunities to sell their property for the purpose of a larger development. Rosemead 2021-2029 Housing Element Housing Plan  83 Objectives: a) Continue maintaining an updated listing of opportunity sites, using GIS to visually catalogue and display information about each site and the surrounding properties. Coordinate listing with RHNA sites availability. b) Initiate contact with the West SGV Association of Realtors regarding residential development opportunities involving lot consolidation. Agency: City Manager, Community Development Department Financing: General Fund Time Frame: a) Opportunity Sites Program will be updated annually b) Contact West SGV Association of Realtors annually Program Strategy: Special Housing Needs and Zoning Amendments 9. Special Housing Needs and Zoning Transitional and Supportive Housing Recent State law (AB 2162, 2018) requires that supportive housing, meeting certain criteria, be allowed by-right in zones where multi-family and mixed uses are permitted. State law also stipulates that minimum parking standards for units occupied by supportive housing residents are prohibited if the development is within one-half mile of a public transit stop. Currently, transitional and supportive housing are permitted in all residential zones and the R/C zone of the Garvey Specific Plan area. State law also includes provisions for low barrier navigation centers (LBNCs) to assist persons experiencing homelessness. LBNCs must be allowed by-right in mixed-use and nonresidential zones where multi-family uses are permitted. Emergency Shelters State law requires that the City address the emergency housing needs of persons experiencing homelessness, based on the point-in-time count as described in Section 2.F. Cities must provide a zone which permits emergency shelters by-right. Additionally, emergency shelters are subject only to the same development standards that apply to the other permitted uses in the zone and written objective standards unique to emergency shelters as set forth in §65583(a)(4) of the California Government Code. The City is currently processing an amendment to the Zoning Ordinance that will allow emergency shelters by- right to address current housing needs. The Zoning Ordinance amendment is anticipated to be adopted in January 2022. Code Amendments and Incentives Evaluate potential for additional code amendments to facilitate affordable housing. Flexible zoning regulations and streamlined permit processing can reduce costs and serve as incentives to development. Objectives: a) Amend the Zoning Ordinance to address changes to State law including AB 101 (Low Barrier Navigation Center) and AB 139 (Emergency and Transitional Housing) b) Amend the Zoning Ordinance to allow supportive housing by-right in the RC-MUDO and FCMUO zones. In addition, remove minimum parking requirements for units occupied by supportive housing residents if the development is located within one-half mile of a public transit stop per AB 2162 (Supportive Housing). c) Amend the zoning code to be consistent with the latest State Density Bonus Law requirements. 84  Housing Plan d) Monitor shelter capacity needs based on the Biannual Homeless Census (point-in-time) count, and report findings in Annual Progress Reports. e) Amend the Zoning Code to facilitate affordable housing including reducing R-3 Zone parking standards for affordable housing. f) Develop objective design standards for the MUDO and R-3 Zones to minimize time and cost associated with permit processing. g) Amend the City’s Land Use Map to include information on minimum densities in the mixed-use and high-density mixed-use designations h) Encourage housing providers to designate a portion of new affordable housing developments for persons with disabilities. i) Review the Zoning Ordinance for provisions for large group homes (7+ persons) and develop mitigating strategies to remove potential constraints and facilitate development of large group homes. j) Amend the Zoning Code to allow housing for six or fewer employees, including farmworkers, to be treated as a regular residential use in compliance with the California Employee Housing Act. k) Amend the Zoning Code to allow manufactured housing in the R-1 Zone by-right, in compliance with State law. l) Adopt SB 35 (Streamlining Provisions) to allow streamlined ministerial approval for qualified residential developments with at least 10% affordability, in compliance with State law. m) Share information on available incentives as a part of the development review process by the end of 2022. Agency: City Financing: General Fund Time Frame: a), b) and c) Within one year from adoption of Housing Element and updated annually d) Every 2 years e), f) and g) Within 2 years from adoption of the Housing Element h) Ongoing i) Ongoing j), k), l) and m) Within 2 years from adoption of the Housing Element 10. Development of Housing for Extremely Low-Income Households Pursue grants and other funding opportunities that support the initiation, operation, and expansion of affordable housing programs. The City shall, on a case-by-case basis, assess the financial incentives needed to facilitate the development of affordable housing for Extremely Low Income (ELI) households. Financial assistance could include equity subsidies to new construction projects and/or purchase of covenants. Financial assistance could also take the form of funding a fee waiver program in which developments proposing to include a minimum percentage of ELI units are exempted from plan check fees. The City will work with the appropriate agencies to ensure a dedicated source of funding for housing for ELI households in Rosemead. Funding possibilities for ELI include: 1) HOME funds for ELI housing development; and 2) pursuing HUD Section 202 funds, and other State and federal loans and grants, according to the specific nature of the project. The City will also provide regulatory incentives, such as implementing the density bonus program. Rosemead 2021-2029 Housing Element Housing Plan  85 Objectives: a) Target funds from CDBG, HOME and other sources to assist in the development of ELI units as necessary b) Implement priority processing procedure for ELI housing development projects c) Monitor financial assistance programs administered by the California Department of Housing and Community Development and apply for funding as appropriate. Current program information is posted on the HCD website at: https://www.hcd.ca.gov/grants-funding/index.shtml. Agency: City Financing: CDBG, HOME, project-specific State and federal loans and grants, as necessary and appropriate Time Frame: a) Within 1 year from adoption of the Housing Element b) Ongoing implementation 11. By-Right Approval of Projects with 20 Percent Affordable Units on “Reuse” Housing Element Sites Pursuant to Assembly Bill 1397 passed in 2017, the City will amend the Zoning Ordinance to require by- right approval of housing development that includes 20 percent of the units as housing affordable to lower income households, on sites being used to meet the 6th cycle RHNA that represent a “reuse” of sites previously identified in the 4th and 5th cycles Housing Element, as well as rezoned sites identified in the 6th cycle Housing Element. Objectives: Amend Zoning Code to provide for by-right approval of projects meeting the 20 percent affordable requirements on Housing Element reuse sites. Agency: City Financing: City General Fund Time Frame: Within 3 years and 120 days from the 2021-2029 Housing Element statutory deadline Program Strategy: Rental Assistance 12. Section 8 Rental Assistance Payments/Housing Vouchers This program, administered by the Los Angeles County Development Authority (LACDA), Housing Assistance Division extends rental subsidies (vouchers) to low-income families and elderly persons who spend more than 30 percent of their income on rent. The assistance represents the difference between the excess for 30 percent of the monthly income and the actual rent. Conduct outreach regarding availability of the voucher program and new source of income protection per SB 329 (2019). SB 329 outreach refers to sharing information that the term “source of income” was redefined in regard to housing discrimination laws to mean verifiable income paid directly to a tenant or paid to a housing owner or landlord on behalf of a tenant, including federal, State, or local public assistance and housing subsidies. Objectives: a) Continue participating in the LACDA Section 8 Program b) Post website materials regarding availability of the Section 8/Housing Choice Voucher Program and new source of income protection per SB 329 (2019). Agency: County, HUD Financing: Section 8 86  Housing Plan Time Frame: Annually 2014-2021 13. Mobile Home Park Assistance Program (MPAP) This program is offered by the State Department of Housing and Community Development. It provides financial and technical assistance to mobile home park residents who wish to purchase their mobile home parks and convert the parks to resident ownership. Loans are made to low-income mobile home park residents, or to organizations formed by the park residents, to own and/or operate their mobile home parks. Then the residents control their own housing costs. Loans are limited to 50-percent of the purchase price plus the conversion costs. They are awarded by the State on a competitive basis. Depending on the funding by the State and if the program is available, the City has the option to serve as co-applicant for any resident organizations applying to the State for funding. In addition, continue to implement the City’s Mobile Home Park Ordinance. The Ordinance establishes the requirements to close or convert an existing mobile home park, including the submittal of a Conversion Impact Report and Relocation Plan. In addition, a public hearing would be required on the Conversion Impact Report at least 90 days prior to any evictions allowing the City Council ample time to review and comment on the document. Objectives: a) Assist in the application process for loans to low-income mobile home park residents when State funding and MPAP program is available. b) Provide ordinance information to mobile home park owners. Agency: City, HCD Financing: State Funds and City General Funds Time Frame: a) Annually, depending on funding availability b) Monitor funding availability and support applicants upon request. Provide information on an ongoing basis. Program Strategy: Equal Opportunity Housing 14. Fair Housing Program The City has had an ongoing commitment to prevent, reduce, and ultimately eliminate housing discrimination and other barriers related to equal opportunity in housing choice, and adopted an updated Five Year Analysis of Impediments to Fair Housing Choice (AI) in January 2020. Affirmatively furthering fair housing (AFFH) requires taking meaningful actions to address impediments identified in the AI, and to additionally address other impediments that were discovered through the AB 686 assessment completed as a part of the Housing Element Update. The AFFH Assessment is provided as Appendix D, and the resulting programs are identified as follows. All of the factors are High Priority contributing factors as they have direct and substantial impacts on fair housing. Rosemead 2021-2029 Housing Element Housing Plan  87 Table 49 Fair Housing Program Fair Housing Issue High Priority Contributing Factor Meaningful Action Outreach and Enforcement Implementation of fair housing laws Lack of public awareness of fair housing laws and affordability housing advocacy Lack of funding and knowledge about existing housing placement services, rental assistance, and rent deposit services/ programs. Work with the Housing Rights Center (HRC) to expand its Fair Housing Program in Rosemead to: • develop a local outreach program about the positive impacts of affordable housing. • Begin educational programs that promote the positives of integrated income neighborhoods to change local attitudes about affordable housing. • Annually review and report on apartment rental advertisements released by private housing companies. Provide CDBG funding to the HRC to handle fair housing cases and education. Assist 10 households and conduct 5 tenant or landlord training sessions. Segregation and Integration Housing Mobility Increasing levels of segregation with high concentrations of Asian and/or Hispanic popula- tions, but is likely the result of natural settlement patterns. All census tracts have a high concentration of minority residents. Adopt an official affirmative marketing policy designed to attract renters and buyers of protected classes. Assign HRC, as a part of its Fair Housing Contract, to annually review and report on apartment rental advertisements released by private housing companies. When holding community meetings, proactively outreach to a wide range of community groups. R/ECAP and Access to Opportunity City has a TCAC area of High Segregation and Poverty. City has no R/ECAPs, but is in a region with R/ECAPs Low homeownership Difficulty in securing housing using Housing Choice Vouchers Enhance place-based investments Barriers to mobility Lack of opportunities for residents to obtain housing in higher opportunity areas Provide more outreach and education to housing providers and potentially qualified residents regarding Housing Choice Voucher program Pursue community revitalization through development in the mixed-use overlay zones and the Garvey Avenue Specific Plan (GASP). Increase public investment to provide public services, “green” characteristics, public amenities and overall characteristics that foster positive economic, environmental and educational opportunities. Accommodate persons with disabilities who seek reasonable waiver or modification of land use controls and/or development standards pursuant to procedures and criteria set forth in the Municipal Code. Identify vacant residential properties for targeted rehabilitation. Stimulate economic growth by providing low interest loans to business owners using CDBG funds, including two business owners in TCAC areas. Support Infill, Site Recycling and ADU development per Program 3. 88  Housing Plan Fair Housing Issue High Priority Contributing Factor Meaningful Action See also Programs 6 and 8 regarding adequate sites and marketing economic development opportunity sites. Safe and Green Neighborhoods Land use planning and economic development decisions Limited amount of recreation and open play areas and public spaces Evaluate all proposed amendments to the General Plan’s Land Use Map and the Zoning Map for their effect on AFFH. See Program 3. Pursue funding to assist neighborhoods of concentrated poverty for investment in factors such as rehabilitation, parks, transit, and active transportation. Ensure economic development plans reflect the needs of lower-opportunity neighborhoods. Disproportionate Housing Needs and Displacement Risk Displacement in Vulnerable Communities Lack of affordable housing in a range of sizes Land use and zoning laws High housing land, construction and labor costs High cost of repairs Displacement risk as higher-income households move into the community Increase City efforts to enable and promote residential development through use of the mixed-use overlay zones, the Small Lot Ordinance and GASP. These initiatives provide new opportunities for a variety of residential development types and prices, and include areas where residential development was previously not allowed. Promote use of the State Density Bonus Law through website materials and counter assistance. Preserve the City's existing affordable housing stock for low- and moderate-income households (LMI) in the 0 to 80 percent of Area Median Income (AMI) category Acquire land for affordable housing using CDBG funding to assist 20 low-income families. Review ways to control rent and or housing sale costs for City rehabbed properties. To assist in the housing needs for persons with developmental disabilities, the City will implement programs to coordinate housing activities and outreach with the Eastern Los Angeles Regional Center (ELARC), encourage housing providers to designate a portion of new affordable housing developments for persons with disabilities, especially persons with developmental disabilities, and pursue funding sources designated for persons with special needs and disabilities Provide low interest loans to five low- to moderate-income homeowners of single-family home and condominiums to make home repairs using HOME funds. Promote, increase, maintain homeownership for LMI households. See Programs 1 and 2 regarding rehabilitation and down payment assistance programs. Continue to monitor and preserve affordable senior housing units for lower income elderly households. Promote fair housing among all income categories. Access to services Provide more outreach and education to extremely low- income households regarding Housing Choice Voucher and other supportive programs, as described in Program 12. Rosemead 2021-2029 Housing Element Housing Plan  89 Fair Housing Issue High Priority Contributing Factor Meaningful Action Provide supportive services for non-homeless persons with special needs. • Provide nutritious meals to 50 seniors each week. • Provide employment opportunities for 15 high school- aged youth. • Coordinate housing activities and outreach with ELARC and pursue funding sources designated for persons with special needs and disabilities Rental housing conditions Review the feasibility of establishing city-wide rental property inspection programs as a way to combat issues of blight and deterioration in rental housing. A local program could be created with other jurisdictions to share costs. Enforces routine rental inspection that encourage landlords make financial decisions to either reinvest or to sell. Aging housing stock Continue and expand rehabilitation programs based on available funding, including CDBG funding to rehabilitate 10 units. Assist with energy efficient improvements. Develop innovative code enforcement methods to create a larger pool of decent housing options. Review the feasibility of establishing a city-wide rental property inspection program as a way to combat issues of blight and deterioration in rental housing. • A local program could be created with other jurisdictions to share costs. • Enforces routine rental inspection that encourage landlords make financial decisions to either reinvest or to sell. Create a revolving loan fund for homes with dire code violations so that properties could be available for purchase or rent. Objectives: Provided individually as noted in table Agency: City Financing: State, federal and regional sources as available, General Fund Time Frame: Provided individually for distinct actions as noted in table C. Quantified Objectives The Housing Element is required to provide quantified objectives for new construction, rehabilitation, and conservation. Housing needs in Rosemead far exceeded the resources available to the City. The quantified objectives, as permitted under State law, are established at levels that acknowledge the limited resources available. 90  Housing Plan Table 50 Quantified Objectives Income Category RHNA Targets for 2021-2029 Units that Could be Constructed by 2029 Units that Could be Rehabilitated Units that Could be Conserved (At-Risk Housing) Extremely Low1 577 6832,3 15 – Very Low 577 6842,3 16 – Low 638 9103 19 – Moderate 686 1,285 – – Above Moderate 2,134 3,317 – – Total 4,612 6,879 50 04 Notes: 1. State Housing Element law requires local jurisdictions establish quantified objectives to include also extremely low-income households. For projected RHNA housing needs, local jurisdictions can evenly split the very low income RHNA into extremely low and low income. 2. New construction objectives are estimated at about 25 percent of the extremely low/very low income RHNA and 25 percent of the low income RHNA. 3. The total of 2,277 lower-income units are allocated as follows: Low (40%), Very Low (30%), Extremely Low (30%). 4. The City has no at-risk housing but intends to monitor and conserve all 125 existing affordable housing units.