Council weighs risks on new housing plan

State formula would require Ojai to allow up to 427 new units by 2014, deadline to be certified already past

By Nao Braverman

If the city of Ojai wants to follow the rules of the state of California and make room for new housing, it looks as if some of its boasted assets, clean air, water and quality of life, would likely be at stake.
A look at some surrounding cities shows that a very small number of municipalities have not followed the state’s requirements, with little consequence. Others have defied the state’s rules and faced costly litigation. No cities in Ventura County have had their plans certified yet.
At a special City Council meeting Tuesday evening, council members revisited the Housing Element, a required plan to accommodate new housing to be certified by the state’s Housing and Community Development Department.
The topic was last discussed in May when council members said they were not ready to adopt a plan to accommodate the 427 new housing units required by the state.
While council members all agreed that they would like to provide affordable housing for Ojai’s work force, they were not ready to open the door to the development of 427 new units, a housing increase that does not coincide with the city’s pre-existing growth management plan.
At a prior discussion of the topic, council members said they were not entirely opposed to defying the state’s mandates. They had asked consultants and city staff to look into the consequences of not complying with the state requirements.
“We have to decide what level of risk we are comfortable with,” said Mayor Sue Horgan on Tuesday. “If we provide affordable housing in the way the state wants us to do, I think that is a risk for our quality of life in Ojai. If we don’t follow the state’s mandates, we are opening ourselves up to litigation from developers. Is that more risky than providing a road map for developers to exploit Ojai?”
Housing consultant Tom Figg presented three Housing Element options that the city could pursue. The first plan, the most likely to be accepted by the HCD, allows for new development of new units primarily through housing overlays which allow property owners to build residential units on land that is zoned for commercial development. That is essentially the same plan, rejected by the council, that Figg presented months earlier.
The second option, though less likely to be approved by HCD, proposes to increase affordable housing in ways that will be less likely to add as many new developments, such as turning existing non-compliant units into permitted homes. The second option also accommodates new development, though not as much as the first option. The third option is essentially defying the state, relying primarily on existing housing, and linking new development projects with non-resident employees of local businesses.
“As a professional consultant, I continue to promote option No. 1,” said Figg, “because it is the most likely to get you certified.”
If HCD receives a housing plan for Ojai that the department contends does not substantially comply with the Housing Element law, then the city must either change their plan in accordance with HCD’s requirements, or self-certify. Self-certification means that the city adopts the plan that has not been certified by the state’s HCD, but makes findings as to why it thinks the plan does comply with the law.
If a city with an HCD-certified plan gets sued by developers, the state government will back them up. If it gets sued with a self-certified plan, the city is on its own.
While 20 percent of California communities have not implemented housing plans that have been certified by HCD, all except for 8 percent hope to eventually be certified by the state.
Pismo Beach is self-certified because of its lack of available land at reasonable cost, with no consequence to date. The self-certified city of Buellton in Santa Barbara County, however, was faced with a lawsuit by California Rural Legal Assistance, which resulted in the city paying more than $360,000 in damages, and adopting programs which designated sites for high-density housing. The latter was illustrated in the council’s staff report, along with lawsuits against Fillmore and Camarillo.
Council members, still in search of ways to increase affordable housing with minimum development, showed interest in a new bill that was passed to address foreclosures. The Housing and Economic Recovery Act of 2008 allows local governments to purchase foreclosed homes. Another recent law allows local governments to re-finance mortgages on owner-occupied homes, using tax-exempt bond funds. Since the housing plan does include assistance to existing households, it could use such a program in some credit toward assisting households that are at risk of losing their homes, according to Figg’s report.
A recent development also requires the city to accommodate emergency shelters and transitional housing facilities for the homeless in their plan. If the city moves forward with a housing plan it must take the latter into consideration, according to Figg.
Councilman Steve Olsen asked staff to look into more creative ways to accommodate new housing, without increasing the possibility of overwhelming build-out.
Sue Broidy, local resident and commissioner for the Area Housing Authority, urged the council to examine the need for affordable housing and opt for Figg’s proposed plan. Local residents Stan Greene, Jim Ruch and Bill Miley, pleaded for consideration of Ojai’s water, and asked for additional studies on water availability in the valley.
The urban water management plans for the Golden State Water Company and the Casitas Municipal Water District both show the availability of water, but are somewhat incomplete, according to the staff report.
Since no decision was required for the meeting Tuesday, council members agreed to resume discussing the housing plan at the Jan. 27 meeting.
Councilwoman Rae Hanstad received a standing ovation for her eight years of service at her last meeting with the council. She thanked her colleagues and members of the public, and accepted praise from fellow councilmen.
Councilwoman Carol Smith applauded her for taking the reins and leading the city through tough times during Hanstad’s term as mayor.
“The city will miss your leadership and your wisdom,” said Horgan.