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Draft Housing Element Study Session <br />June 23, 2009 Joint City Council / Planning Commission Meeting Page 3 <br />Availability of Sites for Housing <br />State law requires that jurisdictions provide an adequate number of sites to allow for and <br />facilitate production of their regional share of housing (RHNA). California Government Code <br />Section 65583(c)(1) states that adequate sites are those with appropriate zoning and development <br />standards, with services and facilities, needed to facilitate and encourage the development of a <br />variety of housing for all income levels. <br />"Appropriate zoning and development standards," in the context of this law, means a higher <br />residential density, because a factor directly related to development cost is development <br />density. With an increase in the number of units built in a project, overall costs generally <br />decrease as builders benefit from economies of scale. Because of this, State law equates the <br />identification of higher density sites with meeting the RHNA. Specifically, HCD guidance states: <br />"The densities of sites identified in the inventory must be sufficient to encourage and facilitate <br />the development of housing affordable to lower-income households." <br />As noted throughout the Housing Element, Colton has more than met its obligation to <br />accommodate affordable housing. Low rents, low purchase prices, and the age of existing <br />housing have created entire neighborhoods where virtually any unit is affordable to lower- <br />income households. The City's overall focus is to create a much better local economy that will <br />facilitate investment in these neighborhoods, with that economy including opportunities for <br />move -up and higher -quality housing. The City's primary housing goal is to encourage and help <br />current property owners improve aging and substandard housing, and to make neighborhoods <br />safer. Any higher density housing that is to occur — both for -sale and rental - will be focused in <br />the two specific plan areas, as part of new communities, where housing for persons of all income <br />levels can be provided in integrated neighborhoods. With these goals in mind, the City of Colton <br />has defined an overall strategy for accommodating new housing that includes identifying sites <br />available for new housing construction within a range of densities. <br />Cost of Housing and Density Assumptions <br />HCD has deemed affordability to be correlated with density. Consequently, State law has <br />established "default densities" that by definition are considered sufficient to provide market- <br />based incentives for the development of housing for lower-income households. For jurisdictions <br />that have a population greater than 25,000 and are located within a Metropolitan Statistical Area <br />(MSA) with a population of more than two million, the default density is 30 dwelling units per <br />acre (or higher). This default standard applies equally to communities of relative affluence, with <br />higher residential property values (such as Rancho Cucamonga or Claremont), and to <br />communities with significant economic challenges, where home prices, rents, and the cost of <br />vacant land is significantly below the regional average. <br />Colton has a population greater than 25,000 and is within the Riverside -San Bernardino -Ontario <br />MSA. Thus, State law establishes a default density for Colton of 30 units per acre. However, <br />the City's General Plan land use and zoning standards do not allow densities at this level, as the <br />historic suburban character of Colton represents the historically desired land use pattern and as <br />shown, households of lower incomes have been able to afford housing in the City. <br />