The Housing Dilemma
January 30, 2019
Last week I had the chance to attend the ‘League of California Cities New Mayors and Council Members Academy’ in Sacramento, where I met with Councilmembers and Mayors from several cities in California. Almost every city has unique challenges and opportunities that they grapple with. However, no discussion on challenges was complete without a discussion of the Housing Crisis.
As a Councilmember, I now have better appreciation of the problem and have a more open mind to consider and evaluate potential solutions. Throughout my professional career, I have had the chance to work on complex products and initiatives, and I have taken pride in being able to simplify them for external customers and internal stakeholders. So as I gained more information and understanding of the magnitude of the housing problem, the current regulatory landscape, the role of state government and potential solutions, and the overall complexity of the issue, I felt that it is important to present a perspective for everyone to consider.
Overall, it is important for all of us to understand the problem and realize that it is not as simple as saying yes or saying no to housing. It is also critical to understand the projections for the future. It is becoming more critical to understand the important role of local government in advocacy efforts.
The Problem
The major problem with housing in San Mateo County is the fact that housing development has not kept up with the tens of thousands of new jobs added over the last several years - and the problem has gotten worse in recent years. Between 2010 and 2016, approximately 80,000 new jobs were created in San Mateo County, but only 3,844 new housing units were built, a 16:1 ratio.
In 2017 and 2018, job growth increased by 1.8 percent each of those years. Economists project job growth in San Mateo County to increase at an average of 0.9 percent per year from 2019 to 2022. During that same period, San Mateo County municipalities are projected to issue only 1,000 housing permits per year (Source: CA EDD, US Census, American Community Survey).
For the most part, people want to live close to their work, which creates a housing demand that drives up the cost of housing for homebuyers and renters, especially along the Peninsula. Also, because workers with a moderate income cannot afford to live in San Mateo County, the demand produces congestion on our local roads and highways and creates longer commutes for workers.
State’s Role
Foster City’s Housing Element was updated in February 2015 (for the period between 2015-2023). For each housing element period, State law mandates that local governments plan for their share of the region’s housing need for all income categories. The Association of Bay Area Governments (ABAG) authorized San Mateo County and its cities to work together to determine each jurisdiction’s Regional Housing Needs Allocation (RHNA) numbers. In addition to the overall number, the units are also required to be distributed according to income level.
Under State planning law, a housing element must describe how a municipality will be able to meet its RHNA numbers. In determining how to achieve its RHNA numbers for the 2015-2023 planning period, Foster City’s Housing Element committed to creating an Affordable Housing Overlay (“AHO”) Zone that would result in the potential for additional housing units to meet our state obligations. The City Council and Planning Commission will conduct study sessions on the AHO in the next several months.
Solutions
Several tools have been used successfully by cities to address the housing crisis, and Foster City currently uses some of these tools. Adjusting development standards to require less parking, allowing the use of innovative materials or designs to reduce construction costs, second unit ordinances, development incentives, housing overlay zone, inclusionary zoning, and affordable housing impact fees are all strategies to create more affordable housing opportunities in our community.
Local Government’s Role
In general, the City’s Housing Element is intended to be the vehicle to address our housing needs in a manner that maintains the "balance" of housing types, the design and character of housing and neighborhoods, and the affordability of housing in the City. As more State requirements are placed on top of existing requirements, many cities find it more and more difficult to comply.
It is important for the community to understand the requirements that will be imposed for Foster City. The City will be participating in regional efforts to become informed regularly regarding this subject matter. Equally important is understanding Foster City residents’ views and emotions on this topic, our unique geographic location and traffic challenges. Advocating for solutions such as building housing around transportation hubs and collaboration of private and public sector is crucial.
In closing, I urge you all to understand the problem at a deeper level and form fact-based opinions on the issues we are facing. We must work together to find solutions and it starts with understanding every challenge with an open mind. We need your engagement and involvement. I am happy to be available to discuss this or any other topic you’d like and can be reached at rawasthi@fostercity.org.
