After several months of discussion, the Brentwood City Council took a step toward fixing the city’s housing shortage because it has fallen far short of its state-mandated housing goals.
The new amendment to the Municipal Code, approved at the council’s July 12 meeting, will require developers to set aside 13% of future housing projects to be available as affordable housing units. This is up 3% from the current requirement and pertains to both rentals and owner-occupied homes.
For ownership units, the ordinance, in its current iteration, mandates 3% for very-low income, 4% for low income, and 4% for moderate income. For rentals, it is 5% each for very-low and low-income units, with no requirement for moderate income. It also provided developers the option to pay an in-lieu fee to avoid having to build any below-market-rate homes in proposed single-family developments, but in-lieu payments for rental projects were by approved waiver only.
Changes under the new amendment will make the percentages for both owner-occupied and rental units the same. Very-low and low income will remain at 3% and 4%, respectively. However, the requirement for moderate-income units will be raised to 6%. While this is a slight decrease for very-low and low income rental units, it does mean moderate income earners will be included for affordable rental options. Additionally, the option to pay in-lieu fees will be available only to developers proposing single family housing projects of five to nine units.
All new affordable housing units are required to “be comparable to the market-rate units in exterior design, quality, materials, architectural elements and overall construction quality, as well as number and proportion of bedroom types,” according to Brentwood Municipal Code, which is the “endeavor to ensure the supply of safe, decent, and sound housing for all residents.”
While the amendment aims to keep single-family homes as the predominant housing type, it offers the possibility of “construction of affordable duets, duplexes, triplexes or fourplexes on corner lots within single-family areas,” according to the code. This keeps the amendment in line with the city’s General Plan, with the goal of providing a diversity of housing opportunities to enhance the city’s living environment and to satisfy the shelter needs of all Brentwood residents, according to City Goal H 1.
Since 2013, single-family home prices in Brentwood have skyrocketed. In June 2022, the median listing home price was $899,000, trending up 12.5% year-over-year, according to realtor.com. In order to qualify for the city’s Affordable Housing Program, a family of four can make up to $71,400 to be considered very-low income, $109,600 to be considered low-income, and $171,350 for moderate income. If qualified, this would set affordable home prices at $203,000, $326,000, and $684,000, respectively, for a three-bedroom home.
Ordinance 756, which established Brentwood’s Affordable Housing Program, was added to the city’s Municipal Code in 2003. Since its inception, several amendments have been made throughout the years. When the Affordable Housing Ordinance was adopted, the City Council approved the Affordable Housing Ordinance as a “living” document that would need to be amended from time to time. As staff implemented the direction of the ordinance, market conditions may change over time, according to the report by Sylvia Elias, Brentwood’s Senior House Analyst.
Elias also stated that more than 65% of Brentwood’s workers earn comparatively lower wages, and those who live in Brentwood spend more than 50% of their earnings on housing. Housing options for very-low and low income families in the city are becoming scarce.
Brentwood falls significantly short of the state-mandated goal for permits issued for very low-income and low-income housing, according to the most recent data from Cycle 5 of the Regional Housing Needs Allocation (RHNA), which runs from January 31, 2015 to January 31, 2023. In the time frame stated, the RHNA Plan set the goal of 234 units for very low-income individuals and 124 units for low-income people, but only 4 and 14 permits have been issued, respectively, coming in at a mere 1.7% towards the final goal for very low-income and 11.3% for low-income. In the same time period, 3,543 permits have been issued for homes being built and sold to people with above-moderate Incomes, or 1,269.9% of the RHNA’s 279-unit goal.
Cycle 6 RHNA goals are being determined. If the projected numbers for the upcoming cycle, which runs from January 31, 2023 until January 31, 2032, are adopted, it shows an even greater need for housing units across all levels of affordability – upwards of 50% more.
