Housing Readiness Report

Local housing programs, as part of a housing element, have significant impacts on a city or county reaching its affordable housing goals. Each additional housing policy has a significant impact on the residents who are most in need of affordable housing. However, the number of programs that a jurisdiction includes in their housing element is not meant to imply how well a city or county is addressing local housing needs since the quality and impact of each will need to be determined as well.

PROGRAM NUMBER	ACTIONS	DELIVERABLE	DELIVERABLE DATE
2B	Place a measure on the 2024 ballot to rescind the provision of Albany’s Measure K (1994) related to the 10.79-acre parcel (APN 66-2760-10-7) located on Pierce Street on the south side of Albany Hill. New zoning for the site should accommodate the production of at least 130 units of housing at a density of no less than 20 units per acre, with housing clustered on the most accessible western portion of the site, improved protection of sensitive habitat on the eastern portion, and incorporation of wildfire protection measures across the entire site.	At least 130 units of housing on APN 66-2760-10-7 by 2031	2031
2D	Implement the San Pablo Avenue Specific Plan, including its provisions for transformation of San Pablo Avenue from an auto-oriented commercial corridor to a corridor that advances residential mixed-use development. Monitor the Plan’s effectiveness and maintain ongoing communication with property owners to support and facilitate residential development. Modify the Plan as needed if it is not achieving its intended goals. (See also Program 4.C)	700 new units in the Specific Plan Area by 2031	2031
2G [sic] (actually 2I)	Update the Density Bonus Ordinance (Albany Municipal Code 20.40.040) to eliminate the requirement that all bonuses, incentives, and concessions must be approved by the City Council. Increase public awareness and understanding of density bonuses, including requirements for concessions and waivers.	Eliminate the requirement that all bonuses, incentives, and concessions must be approved by the City Council. Increase public awareness and understanding of density bonuses, including requirements for concessions and waivers.	Density Bonus Fact Sheet by End of 2023 Municipal Code Amendment by 2026
4E	Complete an evaluation of residential parking standards, and revise the standards based on the findings. The revisions should consider reductions to the required number of spaces for single family residential, multi-family residential, and mixed use development.	Evaluation; revise standards based on the findings	2024
2C	Conduct an evaluation of the City’s inclusionary housing program to ensure it is achieving its intended goals. The City should consider modifications that increase the number of affordable units produced by the program, while maintaining strong incentives for providing below market rate (BMR) units on-site....This could include raising the percentage of affordable units from 15 to 20 percent, requiring that a certain percentage of inclusionary units be fully ADA accessible, or providing variable percentage requirements based on factors such as the number of bedrooms in the BMR units (e.g., lower BMR requirements might be accepted if more three-bedroom “family” units are provided. See also Program 3E.). The evaluation should include consultation with local builders and developers to understand the economic impacts of increasing the percentage requirement and its likely impacts on construction and market rate housing costs. It should also include consultation with the community, affordable housing developers, housing advocates, and neighbors. Potential impacts on project size and scale also should be considered, including the potential for greater density bonuses for projects with deeper levels of affordability. Revisions to the Ordinance should be considered based on the evaluation. As part of the Ordinance update, the City should consider extending in-lieu fee requirements to projects with three and four units, which are currently exempt.	Evaluation; consider modifications	Revise ordinance by 2024
2F [sic] (Actually 2G)	Provide technical assistance and support to the University of California in its plans to add 289 apartment-style units for graduate students on its Albany property. Continue efforts to have this housing recognized by the State of California in the City’s annual reporting of housing production.	The University of California is planning to add 289 apartment-style units targeted to single graduate students without children. The housing will be built during the 2023-2031 period on a 3.8-acre site in Albany Village. It will triple the supply of university-owned housing for single graduate students and create an essential resource for a special needs group that currently represents 15% of Albany’s population. Most of the residents will be low or very low income, and the housing is below market rate.	Initiate construction of 289 units in 2023
4F	Continue to provide reduced fees and expedited processing procedures for affordable housing. Review the impact of these incentives every four years and revise them as necessary....The City has established policies and procedures for fee deferrals and reduced fees for lower income housing. This is an ongoing activity and was used most recently for the 62-unit Satellite Affordable Housing Associates Project. Applications are evaluated on a case-by-case basis depending on the attributes of each project. Given limited financial resources, fee deferrals may be preferable to waivers. Deferrals would allow a fee to be collected once a project is under construction or completed, rather than during the permitting and financing stage. The City will also continue to provide technical assistance to developers of affordable housing, including technical support in funding and grant applications.	Review and revise as necessary	Review every four years
4I [sic] (actually 4J)	Evaluate Planning and Building Code provisions for non-traditional housing types such as “tiny homes,” micro” units, container homes, 3-D printed housing, modular construction, and homes constructed of sustainable building materials. As appropriate, develop Code provisions which accommodate such housing types and support their construction in Albany. Description: There continues to be an interest in the use of non-traditional building materials and housing types as a way to reduce housing costs and provide new housing opportunities. This program includes ongoing evaluation of new technologies, building types, materials, and construction methods, including reporting out to the Planning and Zoning Commission and City Council as needed. As appropriate, this program could also include Code amendments and other steps to support alternative housing throughout the city in the future.	As appropriate, develop Code provisions which accommodate such housing types and support their construction in Albany.	Complete evaluation by 2026
6A	Create a City of Albany Affordable Housing Fund which becomes a repository for funds that will be used to help support affordable housing development in the city. Description: This program is being carried forward from the 2015-2023 Housing Element. Although resources were insufficient to justify a dedicated housing fund during the last cycle, the need for housing remains critical. The City should continue to research potential sources for a dedicated housing fund, such as grants, corporate donations, State and County bond measures, housing fees for 2-4 unit projects, and other sources. A priority will be placed on using these funds in a manner which benefits extremely low income (ELI) and very low income (VLI) households.	Continue to research potential sources...Prioritize funding to increase affordable housing opportunities east of Masonic Ave.	2023
6B	Prioritize programs which benefit extremely low-income households in the disbursement of funds through the annual CDBG and HOME programs.	Prioritize funding to increase affordable housing opportunities east of Masonic Ave.	Annual
6G	Work with local non-profit developers to identify potential housing sites, and to pursue available funding, including CDBG and HOME funds, for the construction of affordable housing, particularly in Albany’s higher-resource areas. Description: A number of non-profit developers are active in the East Bay area. Over the past few decades, they have collectively built thousands of units of affordable housing in the region, providing an essential resource for the region’s lower income households. Albany is committed to working with such developers to encourage the construction of affordable housing within the city. The City will provide technical assistance in the completion and/or co-sponsoring of applications for funds and will work with non-profit developers to address issues of concern and to explore incentives to reduce project costs. This could also include assistance with lot consolidation, notification when development opportunities arise, and information about local development standards and density bonus laws. The City will provide outreach to non-profit housing developers at least once a year to discuss needs and opportunities for affordable housing in Albany and to identify potential funding opportunities	Continue to	Annual
1A	Revise the R-1 (Single Family Zoning) district to allow for a greater mix of housing types and increased access to affordable housing opportunities in Albany’s residential neighborhoods (See also Program 4.A). Description Albany’s R-1 zoning district currently only allows single family dwellings and accessory dwelling units (ADUs). With the median home price in the city approaching $1.3 million, affordable housing opportunities in these areas are extremely limited. Participants in the 2023-2031 Housing Element expressed unwavering support for keeping Albany an economically diverse and inclusive city. In addition, discriminatory lending practices and deed restrictions in place prior to the passage of the Fair Housing Act of 1968 resulted in the direct or indirect exclusion of certain racial and ethnic groups from some of the city’s neighborhoods. The State of California has adopted legislation such as Senate Bill 9 (SB9, 2021), compelling cities to create additional housing opportunities in single family neighborhoods, recognizing past exclusionary past practices while creating additional access to housing in higher-resource areas. Recognizing Albany’s tagline as an “Urban Village by the Bay,” this action program recommends revision of the R-1 zone to allow for a greater variety of low to moderate density housing types. The R-1 zone could be retitled as “Village Residential” and its list of permitted uses could be expanded to include two-unit buildings (either on all lots or lots meeting specific size criteria). The zone could also include allowances for triplexes and fourplexes where certain conditions exist. The zoning changes should be drafted in a way that achieve goals that are compatible with Senate Bill 9 (SB 9), while enabling greater local control over future land use decisions and incentives for affordable unit	Create at least 20 net new dwelling units in R-1 zones by 2031, excluding ADUs (which are covered in Program 1.J). The emphasis should be on neighborhoods east of Masonic Avenue, which are designated by the State as Racially Concentrated Areas of Affluence.	December 31, 2025
1B	Pursue a ballot measure to repeal the remaining provisions of 1978 Measure D, which requires majority support for neighborhood petitions prior to the rezoning of R-1 parcels. Description: In 1978, Albany voters approved Measure D, including a requirement that two parking spaces be provided for every dwelling unit. Measure D also rezoned the blocks between Kains and Masonic Avenues from R-2 to R-1. It also established a requirement that zoning changes be permitted in R-1 zoned areas only if at least 50% of the resident voters within 300 feet of the proposed change indicate their approval by signing a verified petition to this effect. This requirement effectively requires the signed approval of a majority of neighbors prior to the rezoning of any R-1 property to another district. In 2016, Albany voters approved Measure N1, which rescinded the Measure D parking requirements and allowed parking standards to be set by the City Council. Measure N1 did not repeal the other parts of Measure D. This housing program would ask Albany voters to repeal the petition requirement and restore the City Council’s authority to approve changes to R-1 zoning.	Ballot Measure by November 2024	November 2024
1J	Adopt provisions for reduced fees, fee waivers, and other concessions for owners who agree to rent-restrict their accessory dwelling units (ADUs) to low and/or moderate-income households. Description: The City amended its ADU regulations in 2020 in response to the State requirements in effect at the time. It will continue to update regulations as State law changes in the future. In addition, the City will develop strategies to incentivize the production of ADUs that are rent-restricted or “affordable by design” to low and moderate income households. This will include new incentives for units that are deed restricted to lower-income households, such as reduced fees and variations from the adopted development standards. These changes should include increasing the allowable height of an ADU. The City will also continue to promote the development of ADUs in general. Albany already has a dedicated website landing page with information on ADUs, but the page will be enhanced and improved with additional links to resources for homeowners interested in developing ADUs or Junior ADUs.	80 new ADUs between 2023 and 2031. At least one-third of the ADUs developed in the planning period should be east of Masonic Ave, in higher-resource Census Tracts 4201 and 4206	2031
2A	As required by SB 166, the City will monitor the status of the Housing Opportunity Sites listed in this element to ensure that the City maintains sufficient land to accommodate the Regional Housing Needs Allocation (RHNA) for each income group at all times during the planning period. In the event a housing site listed in Chapter 4 is redeveloped with a non-residential use, at a lower density than what is shown in Chapter 4, or with an income mix that differs from the assumptions in Chapter 4, the City will require a finding that adequate capacity remains to meet the RHNA on other sites. In the event an insufficient supply of sites would result, the City shall identify alternative site(s) within the City, and will rezone such site(s) if necessary	Sufficient capacity to accommodate 1,114 housing units between 2023 and 2031 at all times during the planning period.	Initiate in 2023
4A	Modifications to Residential Zoning Standards. Amend the City’s residential development standards, as described in the discussion below, which would facilitate home improvement and expansion as well as creation of additional dwelling units in Albany’s residential neighborhoods. (See also Program 1.A) Description: This action includes the following zoning amendments: (1) Reduce the minimum lot size in the R-1 zone from 3,750 to 2,500 square feet. This is consistent with the density allowed by the General Plan. Thirty-six percent of the lots in Albany are already less than 3,750 square feet and the existing zoning standard does not reflect this pattern. Consider reducing the required rear setbacks on lots smaller than 3,750 feet by using a sliding scale based on lot size. (2) Amend the R-1 zone site regulations to reflect requirements of state law that apply to new ADUs, duplexes, and other multi-unit projects, including the expansion of an existing home to facilitate its division into two units. (3) Increase the allowable FAR and lot coverage in the R-2 zone to ensure that it accommodates two-family units and small multi-family buildings. Although the R-2 district allows 34 units per acre, this density is extremely difficult to achieve with a 0.55 FAR. (4) Allow reduced front and rear setbacks on R-3 lots for multi-family projects in which at least 20 percent of all units are affordable. The existing requirement for a 15’ front and 15’ rear setback is a constraint to multifamily construction on small lots. For example, a 50 x 100 lot would only have 2,800 square feet of developable area after the front, side, and rear lot requirements are subtracted out. This is 56 percent of the lot area, which is below the 70 percent coverage allowed. (5) Allow increased height and FAR in the R-3 zone for multi-family projects in which at least 20 percent of all units are affordable. The increase in height and FAR bonus provides an incentive to include a higher percentage of affordable housing than is required under the City’s inclusionary zoning regulations. These bonuses are intended to be used in lieu of State Density Bonus Law (SDBL) waivers and may not be added on top of any bonuses or waivers requested through SDBL applications. (6) Make multi-family residential and supportive housing permitted uses in the R-4 zone. These are currently listed as conditional uses, yet the express purpose of this zoning district is to accommodate the city’s highest density housing.	Create at least 20 net new dwelling units in R-1 zones by 2031, excluding ADUs (which are covered in Program 1.J). The emphasis should be on neighborhoods east of Masonic Avenue, which are designated by the State as Racially Concentrated Areas of Affluence...10 additional units in existing R-2 areas by 2031	2031
4D	Adopt changes to the Solano Commercial (SC) zoning district, as described in the discussion below, which would facilitate additional multi-family, mixed use, and affordable housing development along this corridor. Description: The State mandate to affirmatively further fair housing requires that higher density and affordable housing be geographically distributed across Albany. While much of the planning focus over the last few years has been on San Pablo Avenue, the Solano Avenue corridor also presents important housing opportunities. Neighborhoods abutting Solano Avenue, particularly in the eastern part of Albany, tend to have the city’s highest home values. They are also considered the city’s highest resource areas, making them more competitive for low-income housing tax credits. Solano Avenue tends to have smaller parcels and high improvement values than San Pablo Avenue, but includes a number of housing opportunity sites. The following zoning changes should be made to the Solano Commercial (SC) district in the first two years after Housing Element adoption. These recommendations should be considered a starting point and are intended for further community discussion and analysis prior to their adoption. (1) Eliminate the maximum density standard on Solano Avenue and regulate future development using a base FAR of 2.0. The SC zone currently allows 63 dwelling units per acre (DUA) but has an FAR of 1.25. This zoning density is extremely difficult to achieve with this FAR, particularly when the ground floor is dedicated to commercial uses. As an example, the recently approved project at 1600 Solano Avenue used a density bonus to increase the allowable FAR from 1.25 to 3.79, a 203 percent increase. This increase was permitted because the 50 percent density bonus was calculated using a density metric (63 DUA * 1.5 = 94 DUA) rather than an FAR metric. Using FAR as the basis for calculating the bonus would have resulted in a maximum FAR of 3.0 assuming a 50% bonus on a 2.0 base. There would have been no limit on the number of units in the building, potentially resulting in some of the units being smaller and more affordable. (2) Maintain the 35’ height limit but allow an automatic increase for projects in which 15% of the units are affordable to lower income households. This would apply to most future residential and mixed use projects, since the City has a 15% inclusionary requirement. It would avoid the need for waiver requests through density bonus applications. This bonus would be used in lieu of the State bonus, and not in addition to it. Commercial-only projects would continue to be subject to a 35’ height limit. Eliminate the use permit requirement for ground floor residential space for projects in which 20% of more of the units are affordable. The SC zoning currently allows residential on the ground floor through a use permit process. The proposed waiver would create an incentive for affordability levels that exceed the 15% required by the City’s inclusionary ordinance. (4) Reduce the common open space requirement from 200 square feet per unit to 100 square feet per unit. This is in line with the recent changes made along San Pablo Avenue. In addition to the changes listed above, this program includes adoption of objective development and design standards (ODDS) for Solano Avenue. The ODDS would allow for “by right” approval of multi-family and mixed use projects meeting the adopted standards.	Initiate construction of 289 units in 2023	2025
6F	Continue to participate in the Alameda County HCD Mortgage Credit Certificate Program, which provides home ownership opportunities for moderate income first- time home buyers. Description: The Mortgage Credit Certificate (MCC) is a federal program to assist first-time buyers in purchasing a home. It is administered by Alameda County Housing and Community Development. The program allows homeowners to take a tax credit of 20% of their annual mortgage interest. Homeowners adjust their federal withholding to reflect the value of the MCC, resulting in thousands of dollars in tax savings each year. This substantially increases the affordability of the home and makes purchases possible for persons who might not otherwise qualify. Funding to support this program is currently not available but may be restored during the planning period. If funding is restored, the City will advertise their availability to Albany residents.	Initiate construction of 289 units in 2023	Annual
1E	Monitor housing units with affordability restrictions to ensure that prices are maintained at affordable levels and that occupants meet approved affordability criteria. Description: The City’s Inclusionary Zoning Ordinance requires that 15 percent of the housing units in market-rate projects with five or more units be set aside for lower income households. While the number of below market rate (BMR) units previously created through this program is small, it will increase substantially as recently approved projects are completed and new development comes on-line in the next eight years. In Spring 2014, the City initiated a monitoring program to ensure that property owners were aware of the income and resale restrictions. This process will continue in the future, with City notification required if a BMR unit is listed for sale or for rent. Similar provisions will be applied when future inclusionary units or other units are created. As the volume of BMR units increases, the City will allow third party enforcement of such agreements.	Ongoing	Ongoing
5C	Conduct an evaluation of the rent review and non-binding conciliation and mediation program established in 2018. Use the findings of this evaluation to either make the program more effective or replace it with more effective measures. Seek input from both housing providers and tenants in this process. Description: The City started a rent review and non-binding conciliation and mediation program in 2018. The ordinance regulates most residential rental units in Albany and provides a mediation process for qualifying rent increases. Housing provider participation in the rent review process is mandatory, but all recommendations are non-binding. Housing providers were required to register all rental units with the City starting in November 2018. From that time forward, housing providers have also been required to inform tenants of the availability of the rent review procedure in English, Spanish, and Chinese. Requests for rent review may be provided using a form developed by the city. The program does not limit rent increases but does establish a two-step process for tenants to appeal rent increases that exceed 5 percent over a one-year period. The City has contracted with ECHO Housing to administer the program. After receiving a rent review request, ECHO Housing contacts the housing provider, and begins a two-step process involving conciliation and mediation. Disputes are often resolved during the conciliation phase. Mediation is used when necessary. These are mandatory processes, and the rent increase becomes void if the housing provider does not participate. Feedback from tenant advocates received during the Housing Element update suggested that some tenants found the process intimidating and suggested that a rent control program was preferable. Feedback from housing providers indicated that the process was working as intended, that it was rarely used, and that the limits on rent increases adopted by the State in 2019 were adequate to protect tenants. By the end of 2023, the City will complete an evaluation of the existing program, including data on the number of cases and their outcomes. The findings of the evaluation will be presented to the City Council for discussion, along with recommendations for addressing any identified deficiencies or replacing the program with new tenant protection measures. In the interim period, awareness of the program among housing providers and tenants should be increased.	Complete evaluation of existing program by end of 2023. Prepare report for City Council consideration including options for addressing program deficiencies or replacing the program (see Program 5D for additional measures to be evaluated)	Complete evaluation of existing program by end of 2023. Prepare report for City Council consideration including options for addressing program deficiencies or replacing the program (see Program 5D for additional measures to be evaluated)

PROGRAM NUMBER

ACTIONS

DELIVERABLE

DELIVERABLE DATE

Place a measure on the 2024 ballot to rescind the provision of Albany’s Measure K (1994) related to the 10.79-acre parcel (APN 66-2760-10-7) located on Pierce Street on the south side of Albany Hill. New zoning for the site should accommodate the production of at least 130 units of housing at a density of no less than 20 units per acre, with housing clustered on the most accessible western portion of the site, improved protection of sensitive habitat on the eastern portion, and incorporation of wildfire protection measures across the entire site.

At least 130 units of housing on APN 66-2760-10-7 by 2031

2031

Implement the San Pablo Avenue Specific Plan, including its provisions for transformation of San Pablo Avenue from an auto-oriented commercial corridor to a corridor that advances residential mixed-use development. Monitor the Plan’s effectiveness and maintain ongoing communication with property owners to support and facilitate residential development. Modify the Plan as needed if it is not achieving its intended goals. (See also Program 4.C)

700 new units in the Specific Plan Area by 2031

2031

2G [sic] (actually 2I)

Update the Density Bonus Ordinance (Albany Municipal Code 20.40.040) to eliminate the requirement that all bonuses, incentives, and concessions must be approved by the City Council. Increase public awareness and understanding of density bonuses, including requirements for concessions and waivers.

Eliminate the requirement that all bonuses, incentives, and concessions must be approved by the City Council. Increase public awareness and understanding of density bonuses, including requirements for concessions and waivers.

Density Bonus Fact Sheet by End of 2023 Municipal Code Amendment by 2026

Complete an evaluation of residential parking standards, and revise the standards based on the findings. The revisions should consider reductions to the required number of spaces for single family residential, multi-family residential, and mixed use development.

Evaluation; revise standards based on the findings

2024

Conduct an evaluation of the City’s inclusionary housing program to ensure it is achieving its intended goals. The City should consider modifications that increase the number of affordable units produced by the program, while maintaining strong incentives for providing below market rate (BMR) units on-site....This could include raising the percentage of affordable units from 15 to 20 percent, requiring that a certain percentage of inclusionary units be fully ADA accessible, or providing variable percentage requirements based on factors such as the number of bedrooms in the BMR units (e.g., lower BMR requirements might be accepted if more three-bedroom “family” units are provided. See also Program 3E.). The evaluation should include consultation with local builders and developers to understand the economic impacts of increasing the percentage requirement and its likely impacts on construction and market rate housing costs. It should also include consultation with the community, affordable housing developers, housing advocates, and neighbors. Potential impacts on project size and scale also should be considered, including the potential for greater density bonuses for projects with deeper levels of affordability. Revisions to the Ordinance should be considered based on the evaluation. As part of the Ordinance update, the City should consider extending in-lieu fee requirements to projects with three and four units, which are currently exempt.

Evaluation; consider modifications

Revise ordinance by 2024

2F [sic] (Actually 2G)

Provide technical assistance and support to the University of California in its plans to add 289 apartment-style units for graduate students on its Albany property. Continue efforts to have this housing recognized by the State of California in the City’s annual reporting of housing production.

The University of California is planning to add 289 apartment-style units targeted to single graduate students without children. The housing will be built during the 2023-2031 period on a 3.8-acre site in Albany Village. It will triple the supply of university-owned housing for single graduate students and create an essential resource for a special needs group that currently represents 15% of Albany’s population. Most of the residents will be low or very low income, and the housing is below market rate.

Initiate construction of 289 units in 2023

Continue to provide reduced fees and expedited processing procedures for affordable housing. Review the impact of these incentives every four years and revise them as necessary....The City has established policies and procedures for fee deferrals and reduced fees for lower income housing. This is an ongoing activity and was used most recently for the 62-unit Satellite Affordable Housing Associates Project. Applications are evaluated on a case-by-case basis depending on the attributes of each project. Given limited financial resources, fee deferrals may be preferable to waivers. Deferrals would allow a fee to be collected once a project is under construction or completed, rather than during the permitting and financing stage. The City will also continue to provide technical assistance to developers of affordable housing, including technical support in funding and grant applications.

Review and revise as necessary

Review every four years

4I [sic] (actually 4J)

Evaluate Planning and Building Code provisions for non-traditional housing types such as “tiny homes,” micro” units, container homes, 3-D printed housing, modular construction, and homes constructed of sustainable building materials. As appropriate, develop Code provisions which accommodate such housing types and support their construction in Albany. Description: There continues to be an interest in the use of non-traditional building materials and housing types as a way to reduce housing costs and provide new housing opportunities. This program includes ongoing evaluation of new technologies, building types, materials, and construction methods, including reporting out to the Planning and Zoning Commission and City Council as needed. As appropriate, this program could also include Code amendments and other steps to support alternative housing throughout the city in the future.

As appropriate, develop Code provisions which accommodate such housing types and support their construction in Albany.

Complete evaluation by 2026

Create a City of Albany Affordable Housing Fund which becomes a repository for funds that will be used to help support affordable housing development in the city. Description: This program is being carried forward from the 2015-2023 Housing Element. Although resources were insufficient to justify a dedicated housing fund during the last cycle, the need for housing remains critical. The City should continue to research potential sources for a dedicated housing fund, such as grants, corporate donations, State and County bond measures, housing fees for 2-4 unit projects, and other sources. A priority will be placed on using these funds in a manner which benefits extremely low income (ELI) and very low income (VLI) households.

Continue to research potential sources...Prioritize funding to increase affordable housing opportunities east of Masonic Ave.

2023

Prioritize programs which benefit extremely low-income households in the disbursement of funds through the annual CDBG and HOME programs.

Prioritize funding to increase affordable housing opportunities east of Masonic Ave.

Annual

Work with local non-profit developers to identify potential housing sites, and to pursue available funding, including CDBG and HOME funds, for the construction of affordable housing, particularly in Albany’s higher-resource areas. Description: A number of non-profit developers are active in the East Bay area. Over the past few decades, they have collectively built thousands of units of affordable housing in the region, providing an essential resource for the region’s lower income households. Albany is committed to working with such developers to encourage the construction of affordable housing within the city. The City will provide technical assistance in the completion and/or co-sponsoring of applications for funds and will work with non-profit developers to address issues of concern and to explore incentives to reduce project costs. This could also include assistance with lot consolidation, notification when development opportunities arise, and information about local development standards and density bonus laws. The City will provide outreach to non-profit housing developers at least once a year to discuss needs and opportunities for affordable housing in Albany and to identify potential funding opportunities

Continue to

Annual

Revise the R-1 (Single Family Zoning) district to allow for a greater mix of housing types and increased access to affordable housing opportunities in Albany’s residential neighborhoods (See also Program 4.A). Description Albany’s R-1 zoning district currently only allows single family dwellings and accessory dwelling units (ADUs). With the median home price in the city approaching $1.3 million, affordable housing opportunities in these areas are extremely limited. Participants in the 2023-2031 Housing Element expressed unwavering support for keeping Albany an economically diverse and inclusive city. In addition, discriminatory lending practices and deed restrictions in place prior to the passage of the Fair Housing Act of 1968 resulted in the direct or indirect exclusion of certain racial and ethnic groups from some of the city’s neighborhoods. The State of California has adopted legislation such as Senate Bill 9 (SB9, 2021), compelling cities to create additional housing opportunities in single family neighborhoods, recognizing past exclusionary past practices while creating additional access to housing in higher-resource areas. Recognizing Albany’s tagline as an “Urban Village by the Bay,” this action program recommends revision of the R-1 zone to allow for a greater variety of low to moderate density housing types. The R-1 zone could be retitled as “Village Residential” and its list of permitted uses could be expanded to include two-unit buildings (either on all lots or lots meeting specific size criteria). The zone could also include allowances for triplexes and fourplexes where certain conditions exist. The zoning changes should be drafted in a way that achieve goals that are compatible with Senate Bill 9 (SB 9), while enabling greater local control over future land use decisions and incentives for affordable unit

Create at least 20 net new dwelling units in R-1 zones by 2031, excluding ADUs (which are covered in Program 1.J). The emphasis should be on neighborhoods east of Masonic Avenue, which are designated by the State as Racially Concentrated Areas of Affluence.

December 31, 2025

Pursue a ballot measure to repeal the remaining provisions of 1978 Measure D, which requires majority support for neighborhood petitions prior to the rezoning of R-1 parcels. Description: In 1978, Albany voters approved Measure D, including a requirement that two parking spaces be provided for every dwelling unit. Measure D also rezoned the blocks between Kains and Masonic Avenues from R-2 to R-1. It also established a requirement that zoning changes be permitted in R-1 zoned areas only if at least 50% of the resident voters within 300 feet of the proposed change indicate their approval by signing a verified petition to this effect. This requirement effectively requires the signed approval of a majority of neighbors prior to the rezoning of any R-1 property to another district. In 2016, Albany voters approved Measure N1, which rescinded the Measure D parking requirements and allowed parking standards to be set by the City Council. Measure N1 did not repeal the other parts of Measure D. This housing program would ask Albany voters to repeal the petition requirement and restore the City Council’s authority to approve changes to R-1 zoning.

Ballot Measure by November 2024

November 2024

Adopt provisions for reduced fees, fee waivers, and other concessions for owners who agree to rent-restrict their accessory dwelling units (ADUs) to low and/or moderate-income households. Description: The City amended its ADU regulations in 2020 in response to the State requirements in effect at the time. It will continue to update regulations as State law changes in the future. In addition, the City will develop strategies to incentivize the production of ADUs that are rent-restricted or “affordable by design” to low and moderate income households. This will include new incentives for units that are deed restricted to lower-income households, such as reduced fees and variations from the adopted development standards. These changes should include increasing the allowable height of an ADU. The City will also continue to promote the development of ADUs in general. Albany already has a dedicated website landing page with information on ADUs, but the page will be enhanced and improved with additional links to resources for homeowners interested in developing ADUs or Junior ADUs.

80 new ADUs between 2023 and 2031. At least one-third of the ADUs developed in the planning period should be east of Masonic Ave, in higher-resource Census Tracts 4201 and 4206

2031

As required by SB 166, the City will monitor the status of the Housing Opportunity Sites listed in this element to ensure that the City maintains sufficient land to accommodate the Regional Housing Needs Allocation (RHNA) for each income group at all times during the planning period. In the event a housing site listed in Chapter 4 is redeveloped with a non-residential use, at a lower density than what is shown in Chapter 4, or with an income mix that differs from the assumptions in Chapter 4, the City will require a finding that adequate capacity remains to meet the RHNA on other sites. In the event an insufficient supply of sites would result, the City shall identify alternative site(s) within the City, and will rezone such site(s) if necessary

Sufficient capacity to accommodate 1,114 housing units between 2023 and 2031 at all times during the planning period.

Initiate in 2023

Modifications to Residential Zoning Standards. Amend the City’s residential development standards, as described in the discussion below, which would facilitate home improvement and expansion as well as creation of additional dwelling units in Albany’s residential neighborhoods. (See also Program 1.A) Description: This action includes the following zoning amendments: (1) Reduce the minimum lot size in the R-1 zone from 3,750 to 2,500 square feet. This is consistent with the density allowed by the General Plan. Thirty-six percent of the lots in Albany are already less than 3,750 square feet and the existing zoning standard does not reflect this pattern. Consider reducing the required rear setbacks on lots smaller than 3,750 feet by using a sliding scale based on lot size. (2) Amend the R-1 zone site regulations to reflect requirements of state law that apply to new ADUs, duplexes, and other multi-unit projects, including the expansion of an existing home to facilitate its division into two units. (3) Increase the allowable FAR and lot coverage in the R-2 zone to ensure that it accommodates two-family units and small multi-family buildings. Although the R-2 district allows 34 units per acre, this density is extremely difficult to achieve with a 0.55 FAR. (4) Allow reduced front and rear setbacks on R-3 lots for multi-family projects in which at least 20 percent of all units are affordable. The existing requirement for a 15’ front and 15’ rear setback is a constraint to multifamily construction on small lots. For example, a 50 x 100 lot would only have 2,800 square feet of developable area after the front, side, and rear lot requirements are subtracted out. This is 56 percent of the lot area, which is below the 70 percent coverage allowed. (5) Allow increased height and FAR in the R-3 zone for multi-family projects in which at least 20 percent of all units are affordable. The increase in height and FAR bonus provides an incentive to include a higher percentage of affordable housing than is required under the City’s inclusionary zoning regulations. These bonuses are intended to be used in lieu of State Density Bonus Law (SDBL) waivers and may not be added on top of any bonuses or waivers requested through SDBL applications. (6) Make multi-family residential and supportive housing permitted uses in the R-4 zone. These are currently listed as conditional uses, yet the express purpose of this zoning district is to accommodate the city’s highest density housing.

2031

Adopt changes to the Solano Commercial (SC) zoning district, as described in the discussion below, which would facilitate additional multi-family, mixed use, and affordable housing development along this corridor. Description: The State mandate to affirmatively further fair housing requires that higher density and affordable housing be geographically distributed across Albany. While much of the planning focus over the last few years has been on San Pablo Avenue, the Solano Avenue corridor also presents important housing opportunities. Neighborhoods abutting Solano Avenue, particularly in the eastern part of Albany, tend to have the city’s highest home values. They are also considered the city’s highest resource areas, making them more competitive for low-income housing tax credits. Solano Avenue tends to have smaller parcels and high improvement values than San Pablo Avenue, but includes a number of housing opportunity sites. The following zoning changes should be made to the Solano Commercial (SC) district in the first two years after Housing Element adoption. These recommendations should be considered a starting point and are intended for further community discussion and analysis prior to their adoption. (1) Eliminate the maximum density standard on Solano Avenue and regulate future development using a base FAR of 2.0. The SC zone currently allows 63 dwelling units per acre (DUA) but has an FAR of 1.25. This zoning density is extremely difficult to achieve with this FAR, particularly when the ground floor is dedicated to commercial uses. As an example, the recently approved project at 1600 Solano Avenue used a density bonus to increase the allowable FAR from 1.25 to 3.79, a 203 percent increase. This increase was permitted because the 50 percent density bonus was calculated using a density metric (63 DUA * 1.5 = 94 DUA) rather than an FAR metric. Using FAR as the basis for calculating the bonus would have resulted in a maximum FAR of 3.0 assuming a 50% bonus on a 2.0 base. There would have been no limit on the number of units in the building, potentially resulting in some of the units being smaller and more affordable. (2) Maintain the 35’ height limit but allow an automatic increase for projects in which 15% of the units are affordable to lower income households. This would apply to most future residential and mixed use projects, since the City has a 15% inclusionary requirement. It would avoid the need for waiver requests through density bonus applications. This bonus would be used in lieu of the State bonus, and not in addition to it. Commercial-only projects would continue to be subject to a 35’ height limit. Eliminate the use permit requirement for ground floor residential space for projects in which 20% of more of the units are affordable. The SC zoning currently allows residential on the ground floor through a use permit process. The proposed waiver would create an incentive for affordability levels that exceed the 15% required by the City’s inclusionary ordinance. (4) Reduce the common open space requirement from 200 square feet per unit to 100 square feet per unit. This is in line with the recent changes made along San Pablo Avenue. In addition to the changes listed above, this program includes adoption of objective development and design standards (ODDS) for Solano Avenue. The ODDS would allow for “by right” approval of multi-family and mixed use projects meeting the adopted standards.

Initiate construction of 289 units in 2023

2025

Continue to participate in the Alameda County HCD Mortgage Credit Certificate Program, which provides home ownership opportunities for moderate income first- time home buyers. Description: The Mortgage Credit Certificate (MCC) is a federal program to assist first-time buyers in purchasing a home. It is administered by Alameda County Housing and Community Development. The program allows homeowners to take a tax credit of 20% of their annual mortgage interest. Homeowners adjust their federal withholding to reflect the value of the MCC, resulting in thousands of dollars in tax savings each year. This substantially increases the affordability of the home and makes purchases possible for persons who might not otherwise qualify. Funding to support this program is currently not available but may be restored during the planning period. If funding is restored, the City will advertise their availability to Albany residents.

Initiate construction of 289 units in 2023

Annual

Monitor housing units with affordability restrictions to ensure that prices are maintained at affordable levels and that occupants meet approved affordability criteria. Description: The City’s Inclusionary Zoning Ordinance requires that 15 percent of the housing units in market-rate projects with five or more units be set aside for lower income households. While the number of below market rate (BMR) units previously created through this program is small, it will increase substantially as recently approved projects are completed and new development comes on-line in the next eight years. In Spring 2014, the City initiated a monitoring program to ensure that property owners were aware of the income and resale restrictions. This process will continue in the future, with City notification required if a BMR unit is listed for sale or for rent. Similar provisions will be applied when future inclusionary units or other units are created. As the volume of BMR units increases, the City will allow third party enforcement of such agreements.

Ongoing

Conduct an evaluation of the rent review and non-binding conciliation and mediation program established in 2018. Use the findings of this evaluation to either make the program more effective or replace it with more effective measures. Seek input from both housing providers and tenants in this process. Description: The City started a rent review and non-binding conciliation and mediation program in 2018. The ordinance regulates most residential rental units in Albany and provides a mediation process for qualifying rent increases. Housing provider participation in the rent review process is mandatory, but all recommendations are non-binding. Housing providers were required to register all rental units with the City starting in November 2018. From that time forward, housing providers have also been required to inform tenants of the availability of the rent review procedure in English, Spanish, and Chinese. Requests for rent review may be provided using a form developed by the city. The program does not limit rent increases but does establish a two-step process for tenants to appeal rent increases that exceed 5 percent over a one-year period. The City has contracted with ECHO Housing to administer the program. After receiving a rent review request, ECHO Housing contacts the housing provider, and begins a two-step process involving conciliation and mediation. Disputes are often resolved during the conciliation phase. Mediation is used when necessary. These are mandatory processes, and the rent increase becomes void if the housing provider does not participate. Feedback from tenant advocates received during the Housing Element update suggested that some tenants found the process intimidating and suggested that a rent control program was preferable. Feedback from housing providers indicated that the process was working as intended, that it was rarely used, and that the limits on rent increases adopted by the State in 2019 were adequate to protect tenants. By the end of 2023, the City will complete an evaluation of the existing program, including data on the number of cases and their outcomes. The findings of the evaluation will be presented to the City Council for discussion, along with recommendations for addressing any identified deficiencies or replacing the program with new tenant protection measures. In the interim period, awareness of the program among housing providers and tenants should be increased.

Complete evaluation of existing program by end of 2023. Prepare report for City Council consideration including options for addressing program deficiencies or replacing the program (see Program 5D for additional measures to be evaluated)

Albany

Housing Programs

6th Cycle Programs

Overview of Program Deliverables

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