Where Will We Live?*

R1

The city should consider increasing affordable housing in PDAs. Response: This recommendation has not yet been implemented but will be implemented in the future, within the next year. The City of Walnut Creek has undertaken the West Downtown Specific Plan and North Downtown Specific Plan in the designated PDA and has considered the PDA objective of providing more affordable housing in close proximity to jobs, transportation, and services. A side effect of new development in a PDA relates to potential displacement of existing lower income residents who may reside in older housing stock that is being replaced by new development, some of which can be mitigated with increased affordable housing requirements in the new development. What those requirements are, and which other anti- displacement measures should be taken are currently under consideration. The City of Walnut Creek previously sponsored several affordable housing projects within the PDA. (See Exhibit 1)

R2

The city should consider adopting an Inclusionary Housing Ordinance. Response: This recommendation has been implemented. The City first adopted its Inclusionary Housing Ordinance in 2004, with adopted revisions to the ordinance approved in 2009 and 2010. (See Exhibit 2)

R3

The city should explore rehabilitating existing housing stock as affordable housing for purchase or rental, and identify funding to do so. Response: This recommendation has been implemented. Currently, the City invests its affordable housing resources primarily into new development of affordable housing. A small portion is used to provide downpayment assistance to help moderate-income households purchase a home in Walnut Creek. The City is also willing to invest in a rental rehab project that will result in rent restricted affordable units if a good opportunity and partnership (with an affordable developer) arose. The City also has a home rehabilitation loan and emergency grant program for low-income homeowners in need of repair and rehabilitation of their home. Additional funding would increase the City of Walnut Creek's ability to dedicate more resources to this aspect of its affordable housing programs and projects.

R5

The city should explore increasing existing "impact fees" or "linkage fees" or enacting such fees in order to generate revenue with which to assist funding affordable housing. Response: This recommendation has been implemented. The City recently commissioned new residential and commercial nexus studies. Both studies demonstrated a higher fee is justifiable and feasible. The Housing and Community Development Committee reviewed the reports and City Council of the City of Walnut Creek Response to 2015-2016 Grand Jury Report No. 1614 recommendations in April of 2016 and the City held a stakeholder meeting in May of 2016. In July of 2016, the Planning Commission reviewed the studies and recommendations. Staff anticipates there will be a City Council Study Session in December of 2016, followed by Planning Commission and City Council meetings on the revised ordinances as necessary to address related programmatic and fee aspects.

R6

The city should consider designating an employee within the city's planning or housing department to coordinate with property management to maintain current waiting and interest lists of available affordable housing and ensure information is posted in the city website, and identifying funding to do SO. Response: This recommendation has been implemented. The City's Housing Division has designated staff who is in contact with property managers. When property managers notify the City that their waitlists are open the City posts that information on the Affordable Housing section of the City's website. The City also maintains an "interest list" of persons interested in affordable housing who are provided with information regarding current developments and contacts at management companies. To further coordinate and/or centralize the affordable projects waitlists, more extensive jurisdictional collaboration would be required. The City does not currently have the resources to act as a centralized location for maintaining waitlists, but could participate in a more streamlined and centralized process, perhaps by a non-profit entity.

R8

The city should consider partnering with for-profit and not-for-profit builders to secure land suitable for affordable housing, and identify funding to do so. Response: This recommendation has been implemented. The City regularly partners with affordable housing developers to secure land suitable for affordable housing. In 2014, Satellite Affordable Housing Associates completed 48 affordable rental units on property that was identified by the City, and acquired with City funding. Also in 2014, Habitat for Humanity completed 10 affordable ownership units on property that was partially purchased by the City from CalTrans and then donated to Habitat. The City also funded infrastructure improvements and downpayment assistance. In 2015 and 2016, Resources for Community Development received entitlements for two affordable housing projects (Riviera Family Apartments - 58 units; and St. Paul's Commons – 45 units), both of which received acquisition, predevelopment, and/or construction financing from the City. Also in 2016, Habitat for Humanity was approved for an acquisition and predevelopment loan to acquire County property located in Walnut Creek for City Council of the City of Walnut Creek Response to 2015-2016 Grand Jury Report No. 1614 the development of up to 52 affordable ownership units. Through the City, funding sources for these projects included Housing Impact Fees, Redevelopment (or Housing Successor) Agency funding, Community Development Block Grant funding, and the State BEGIN program funding.

R9

D. Approval. An Inclusionary Housing Agreement between the Developer and the City shall be required by the applicable decision-making body as a condition of approval of any tentative map, parcel map, conditional use permit subject, or design review to this Article. If the foregoing approvals are not required, an Inclusionary Housing Agreement in a form approved by the Community Development Director shall be executed prior to issuance of a building permit. The Inclusionary Housing Agreement shall provide for the implementation of the requirements of this Article. All Inclusionary Housing Agreements must include, at minimum, the following: Description of the development, including whether the Inclusionary Units will

R11

The city should consider undertaking an education initiative in the earliest phase of affordable planning projects in order to alleviate community concerns regarding affordable housing, and identifying funding to do so. Response: This recommendation has been implemented. The City works closely with affordable housing developers to notify and educate surrounding neighborhoods when developments are proposed and going through the entitlement process. The City is currently in the process of recruiting an intern to assist in an Affordable Housing Community Education campaign. This campaign is not currently tied to a specific project or development phase.

R13

The city should consider identifying all infill and vacant land not in PDAs and encourage use of it for affordable housing through tax incentives, density bonuses, etc. Response: This recommendation will not be implemented because it is not warranted or is not reasonable, based on the following explanation. The City of Walnut Creek has an adopted and State- certified Housing Element that identifies opportunity sites which are vacant or underdeveloped and already designated in the General Plan and zoning for appropriately scaled development that is sufficient to meet the RHNA allocation for the eight-year planning period. Other sites throughout the city may also be available on the market at different times, and may be appropriate for private redevelopment as housing sites. However, researching and creating a list of vacant sites would only induce speculation which tends to increase prices and reduce the opportunity for affordable housing development. Instead, the city maintains an informal awareness of opportunities and works with land owners, for-profit developers and affordable housing developers to define projects that meet a variety of objectives including economic development and new housing.