San Carlos

Continue the Rental Inspection Program to preserve and improve existing housing stock and neighborhood quality.

Ongoing; annually conduct approximately 240 inspection visits

Retention of subsidized (i.e., assisted) housing is a critical part of maintaining the supply of affordable housing in San Carlos. San Carlos will continue to monitor the affordability of existing deed-restricted units and coordinate with property owners to encourage the retention of affordability of these units. At this time, San Carlos has no units at-risk of converting to market rate in the next ten years; however, programs are included in the unforeseen event that affordable units become at-risk during or immediately following the Housing Element period. • Annually monitor the affordability status of at-risk rental units. • Maintain and update the City’s list of nonprofit and community-based organizations to contact regarding possible ownership and management of the at-risk units if they are in imminent risk of conversion. • In the event a project becomes at risk of converting to market-rate housing, work with property owners or other interested non-profit housing providers to preserve the units as affordable housing.

Ongoing; Annually monitor/report the affordability status of at-risk rental units as part of the Annual Progress Report process; Contact owners with expiring covenants two years in advance of the expiring covenant

As taller and denser housing developments are constructed as a result of the City Density Bonus and revisions to the Zoning Ordinance, determine whether additional incentives are necessary for the development of small and odd-shaped lots and/or lot consolidation. Incentives could include: • Rounding up when calculating allowable units to encourage lot consolidation. • Providing technical assistance, such as land development counseling by Community Development staff, with consolidation or development of small and odd-shaped lots. • Conduct proactive outreach by advertising lot consolidation and potential site opportunities to existing property owners and prospective developers. Advertising efforts may include the preparation and distribution of a brochure with information about program incentives and an invitation to attend a working session to discuss opportunities for lot consolidation or the development of small and odd-shaped lots. • Providing priority processing for affordable housing and projects that exceed minimum BMR requirements. • Continue to provide fee deferrals and waivers for 100% affordable housing projects.

Ongoing; conduct a review to assess the City Density Bonus and density, height, and parking standards in the Zoning Ordinance in 2025; as needed identify additional incentives and present options to Council in 2026; review this action item on an annual basis to evaluate its effectiveness and make recommendations as needed; conduct proactive outreach annually

Extremely low-income households and households with special needs have limited housing options. To meet the needs of special needs groups, innovative housing options should also be implemented. • Continue to apply the commercial/housing linkage fee to fund affordable housing and monitor fee amount to ensure it reflects market conditions. Encourage concurrent production of on or off-site affordable housing, in lieu of fee payment. Collaborate with existing and new major employers to encourage the development and funding of more affordable housing. • Offer financial and technical assistance for housing development projects for persons with special needs. • As part of the Housing Element Annual Progress Report, track and report the number of new affordable housing units providing a preference for people with special needs, including seniors, homeless, people with developmental disabilities, etc. that are added to the housing stock each year. • Monitor and pursue county, state, and federal funding programs and sources for the creation of affordable housing. Prioritize available housing funding to assist in the development of housing affordable to extremely lowincome households and other special needs populations. Conduct annual proactive outreach to identify development opportunities and funding and incentives for special needs housing. • Proactively contact non-profit service providers and developers for persons with disabilities and other special needs groups and notify them about funding opportunities, as they become available. • Continue to consult with the San Mateo County Center on Homelessness to further align efforts and coordinate homeless services.

Ongoing; re-evaluate opportunities for construction in-lieu of fee payment in 2024; collaborate with city’s 10 largest employers at least every other year; annually monitor and pursue funding opportunities through county, state, and federal funding programs and sources to leverage City funds; offer funding and technical assistance to projects as they are proposed, acquire property, or issue a Notice of Funding Availability when sufficient funds are acquired; conduct proactive outreach to identify development opportunities, funding, and incentives for housing affordable to extremely low-income and other special needs households and report annually through the Housing Element Annual Report.

Support the development of accessory dwelling units during the planning period and as new State laws modify accessory dwelling unit requirements, update the City’s ordinance to comply. The City last updated its ADU ordinance in August 2022. The City will draft amendments to address laws passed in 2022, including AB 2221 and SB 897 to reflect an up-to-date ordinance compliant with Government Code Section 65852.2. • Collaborate with surrounding jurisdictions through the 21 Elements working group to determine best approach for tracking affordability throughout the planning period. • Encourage the legalization of unpermitted accessory dwelling units to better ensure that they are safe and habitable. As sunset date of San Carlos Municipal Code Section 18.23.210(H) approaches, consider an extension, based on history of use of this provision and anticipated ongoing need. • Work with other regional/agencies countywide partnerships to identify potential funding sources for ADU construction. • Meet with three or four ADU builders to discuss needs and best practices. Review best practices from other cities for “pre-approved” ADUs and expedited review. Create submittal materials with documentation to facilitate expedited review. Update the City’s website and include links to “pre-approved” plans. Conduct ongoing outreach with community. • Provide homeowner/applicant assistant tools by including and promoting State funding resources including the CalHFA ADU grant program and Casita Coalition financing guide on the City’s website. Review and as new information is available, update public education materials on accessory dwelling units, including planning and building requirements, streamline processing, funding possibilities, and other resources. • Encourage local agencies, districts, and utility providers to reduce hook-up or other fees to facilitate the development of accessory dwelling units. • Prioritize ADU applications to be consistent with Government Code Section 65852.2(a)(3) requirements for approval/denial within 60 days from the date a completed application is received. • In 2024, research and pursue the development of an incentive program to provide low-interest loans and grants to single-family homeowners to develop accessory dwelling units with affordability restrictions on their property and other incentives to accept Section 8 Housing Choice Vouchers. This research should also explore outside funds. If funding is available, establish a pilot program within one year of funding identification and implement at least annually thereafter with a goal of achieving at least five affordable ADUs annually. • Promote home sharing programs to connect ADU owners and renters. • Identify and retain an ADU specialist within the Planning Division to respond to inquiries and support outreach efforts.

Ongoing; update the ADU ordinance by June 2023; as new State laws modify accessory dwelling unit requirements, update the City’s ordinance within a timely manner (i.e., within six months); San Carlos Municipal Code Section 18.23.210(H) - 2028; work with 21 Elements – 2023; identify funding for incentive program and complete pre-approved plans - 2024; establish priority process in development review and ADU specialist in 2023; all others - Ongoing

• Continue to implement the BMR ordinance, which specifies Housing Choice Voucher (Section 8) eligibility in the BMR program. • Continue to work with the San Mateo County Department of Housing and nonprofit organizations to implement Housing Choice Voucher Rental Assistance programs. Continue to provide information on the Housing Choice Voucher program, including new legal requirements pursuant to SB 329, which prohibits housing discrimination on the basis of source of income (including Housing Choice Vouchers). • Continue to collaborate with other cities in San Mateo County, regional organizations, and/or nonprofit organizations to evaluate and quantify potential discrimination against Housing Choice Voucher users or other rental assistance voucher programs. Continue to develop and act upon measures to address these issues. • Coordinate with the San Mateo County Housing Authority in 2024 about utilizing a mobility counseling program in San Carlos. This program would market to landlords and property owners and inform Housing Choice Voucher holders about their residential options in areas throughout the city and provide holistic supports to voucher holders seeking to move to highest resource areas. Through landlord outreach and mobility counseling, the City's goal will be to increase the use of Housing Choice Vouchers in San Carlos by five percent and through implementation of the City’s SB 9 and ADU ordinances, seek to integrate at least five units annually in highest opportunity areas.

Ongoing; update the City’s website annually; coordinate with the San Mateo Housing Authority in 2024

Government Code §65863 states that no jurisdiction shall “reduce, or require, or permit the reduction of, the residential density for any parcel to, or allow development of any parcel at, a lower residential density, or allow development at a lower residential density than projected” for properties identified in the Housing Element sites inventory unless the jurisdiction makes written findings that the reduction is consistent with the General Plan, and that the remaining sites identified in the Housing Element are adequate to accommodate the jurisdiction’s need. • Develop and maintain a sites inventory throughout the planning period. • Evaluate residential development proposals for consistency with goals and policies of the General Plan and the 2023-2031 Housing Element sites inventory and make written findings that any density reduction is consistent with the General Plan and that the remaining sites identified in the Housing Element are adequate to accommodate the RHNA by income level. • If a proposed reduction of residential density will result in the residential sites inventory failing to accommodate the RHNA by income level, identify and make available additional adequate sites to accommodate its share of housing need by income level within 180 days of approving the reduced density project.

Sites Inventory – 2023, All Others - Ongoing

Promote residential development on nonvacant sites by: • Targeting nonvacant sites identified in the Housing Element as priorities for fund allocation as funds are available. • Building on outreach conducted during the Housing Element update, continue to proactively outreach to property owners with a survey on how the city can support redevelopment/new housing efforts.

Ongoing; proactively outreach to property owners in 2023 and, in response to any additional identified constraints, draft amendments to existing policies and procedures and bring to hearings by 2024.

Noting historical inequities amplified/perpetuated by single family zoning, encourage small units in residential neighborhoods through development of ADUs, JADUs, and SB 9 units. • See Action HOU-3.3 for specific measures to incentivize ADUs in San Carlos. • Adopt an Ordinance in 2023 to expand the housing supply in single-family zones by allowing for lot splits and duplexes under the parameters of SB 9. These include adopting updated definitions, use regulations, development standards, and ministerial processes based on the outcome of a complete SB 9 analysis. As revisions to State law occur in the future, update the City’s Zoning Ordinance and Subdivision Ordinance accordingly. • In coordination with research being conducted at the State level, evaluate and pursue opportunities to incentivize and, as available, provide funding assistance for homeowners to provide affordable units under SB 9.

Bring SB 9 ordinance for consideration by City Council in Fall 2023. Production and affordability will be monitored every two years thereafter and alternative actions will be implemented if necessary to meet the RHNA. Conduct proactive outreach to housing developers and property owners to promote the SB 9 ordinance through information on the City’s website, the Good City newsletter (mailed to all property owners and renters), at least two times during the planning period. Evaluate and pursue incentive opportunities in 2024.

In 2022, the City amended its City Density Bonus program to allow rental projects to add bonus market rate units at a ratio of 4:1 for each very-low Income unit and 2:1 for each low-income unit that is included in a development project. This City Density Bonus program currently applies citywide to rental housing developments, where multi-units and mixed-use projects are a permitted land use. In conjunction with the Housing Element update to meet the RHNA, modifications to allowable density, building height, and number of stories are proposed (see Action HOU-4.2), and it is understood that the State Density Bonus allows developments to go beyond the City’s height limits to fit all the units to which the project is entitled by the bonus. Under this action, staff will evaluate the City Density Bonus biannually to review use and implementation of the revised City Density Bonus and, as needed, to identify if the City Density Bonus should be revised to target particular areas rather than apply the Bonus uniformly throughout the City, based on place and in areas that are least impactful. Use an equity lens to ensure affordable housing and density bonuses are not concentrated in any one particular area of the community.

Ongoing; conduct a review to assess the City Density Bonus based on place and present options to Council in 2024; reevaluate biannually thereafter.