TECHNICAL ADVISORY COMMITTEE
ITEM:		ACTION ITEMS
2.	DISCUSS AFFORDABLE HOUSING DEFINITIONS
Meeting Date:			October 3, 2006
From:			David A. Berger, General Manager
Prepared by:			Stephanie Pintar

SUMMARY: Under District Rule 24.5 (Exhibit 2-A), the District reduces its connection charges for affordable housing projects. Dwelling units meeting the definition of “moderate income housing” receive a 50 percent reduction in the connection charge, and dwelling units meeting the definition of “low income housing” receive a full exemption from the connection charge. These connection charge reductions are available for the length of time that the units are maintained as affordable housing. The District’s current definitions were last updated in 1994 (Exhibit 2-B), and staff is endeavoring to simplify the existing definitions to make them easier to understand by both the staff and the public. This will be accomplished in a follow-up ordinance to Ordinance No. 125, the water permit/water credit clarification ordinance, which was adopted by the District’s Board on September 18, 2006. In addition to simplifying the definitions, staff will be proposing removal of definitional language from District Rule 24.5 that is redundant.

At the June 6, 2006, TAC meeting, District staff notified the TAC that the proposed clarifications to the District’s definitions for “affordable housing” had been deleted from draft Ordinance No. 125. The Board referred the affordable housing definition (which had been part of the Ordinance No. 125 water permit/water credit comprehensive update) back to the TAC for further consideration of a jurisdiction-wide definition. The TAC agreed to provide the District with copies of ordinances or other documents that codify their affordable housing definitions and eligibility requirements. There was consensus among the committee members at the June TAC meeting that the District’s regulations should recognize each jurisdiction’s affordable housing definitions.

In attempting to achieve District-wide affordable housing definitions, District staff reviewed the responses from the jurisdictions and concluded that a slightly modified version of the existing District definitions for “Moderate Income Housing” and “Low Income Housing” should be acceptable to all jurisdictions within the District. These new definitions were reviewed with key personnel in the jurisdictions. The cities and the County within the District rely on income limits and maximum rental allowances and on Housing and Urban Development (HUD) median income standards that are prepared annually by the Monterey County Housing Office. The proposed District definitions also comply with the California Health and Safety Code Section 50052.5 and 50053 pertaining to redevelopment agency affordability standards.

RECOMMENDATION: The TAC should recommend to the Board that the following definitions (shown below in bold text) replace the existing definitions for low and moderate income housing in the District’s Rules and Regulations. The proposed definitions appear to be relevant throughout the District and also encompass the income levels for redevelopment agency projects.

AFFORDABLE HOUSING ‑ "Affordable Housing" shall mean and refer to housing that is affordable to households that meet the District’s definitions of Low Income Housing and Moderate Income Housing.

LOW INCOME HOUSING – “Low Income Housing” shall mean housing that is affordable to households with incomes at or below 80 percent of the Monterey County median income adjusted for household size.

MODERATE INCOME HOUSING – “Moderate Income Housing” shall mean housing that is affordable to households with incomes between 80 percent and 120 percent of the Monterey County median income adjusted for household size.

BACKGROUND: During February and March 2006, the TAC reviewed a proposed ordinance to amend the water permit process to comply with current Board policies and to clarify a number of policy interpretations. The District’s Board reviewed the draft ordinance in April and May 2006. During the May review, the Board asked staff if there were definitions for affordable housing and for low and very-low income housing that could be applied unilaterally, rather than referring to each jurisdiction to determine qualifications. Without a clear answer, staff was directed to amend the draft ordinance to delete proposed affordable housing definitions that referred the qualification decision to the jurisdiction and to retain the current language until the Technical Advisory Committee (TAC) had an opportunity to review the issue and propose a recommendation.

EXHIBITS

2-A District Rule 24.5, Connections for Affordable Housing

2-B District Rule 11, Definitions for Affordable Housing

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