AgdaPkt 2014-10-20 Closed and Special Joint with SA_Revised_10_17_2014

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8.A. - Page 127 Community Development Department Telephone: (650) 780 -7234 Planning & Housing Services Redwood Facsimile: (650) 780 -0128 1017 Middlefield Road O California TDD: (650) 780 -0129 Redwood City, CA 94064 limed MU Website: www.redwoodcitvorg August 26, 2014 Diana Reddy Member, Redwood City Local Housing Committee 23 Hillview Avenue Redwood City, CA 94062 Dear Ms. Reddy, Thank you for your comments on the draft Redwood City Housing Element that was submitted to HCD. We appreciate the active participation and the ongoing dialogue on these important issues. HCD has forwarded us four letters that they received from outside interest groups on the Redwood City Draft Housing Element, including your organization. A theme throughout the letters indicates concern with rising rents displacing long -time residents from the community. The City shares this concern, which is a difficult regional issue. At its foundation is a mismatch between demand and supply, with the demand for housing in the Bay Area far exceeding supply. Redwood City has been a regional leader in increasing housing supply, with over 2,000 new units approved since 2010. However, rents continue to rise, and it is anticipated that it will take a significant period of time along with regional action before demand and supply is better balanced. To facilitate efforts toward this goal, the City is addressing these disparities through the following programs in the Housing Element: • Community Benefits Study (Program H -14) • Second Units, also known as accessory dwelling units (Program H -12) • Countywide Nexus Study (Program H -3) • Small Lot Duplex, Triplex, and Multi - Family Development (Program H -11) A critical component of the 2010 Redwood City General Plan (and subsequent implementing zoning amendments) was to allow and facilitate increased supply of housing in locations that are well served by transit and residential amenities. Many of these locations are within Priority Development Areas. The City sought out designation of Priority Development Areas because these d esignations can be a benefit to the production of housing, and help access potential funding opportunities and technical assistance. HCD has also indicated in their guidance to jurisdictions that these areas can be more feasible for new residential development, due to market trends and available incentives. The Community Benefits study (identified in Housing Element Program H -14) is currently underway and will evaluate the Priority Development Areas to assess potential for community benefits, including affordable housing, in concert with development of these areas.