MVFREE Statement on DEI Work Plan for Affordable Housing, to City Council June 21st, 2021
Dear Director Kelly, Mayor McCauley, and City Council,
We are writing on behalf of the Equitable and Affordable Housing Working Group of MV FREE (formerly Mill Valley DEI Task Force) to respond to the written MV Planning and Building Department Update of the DEI Work Plan for Affordable Housing, Item 4 on the June 21, 2021 Agenda.
As you know, the Mill Valley DEI Task Force was created to investigate, research, and recommend racial equity best practices to address the historic and persistent racial inequities in our community. Housing in Mill Valley has explicitly excluded everyone who was not white with restrictive deeds, supported by banks, real estate agents, landlords, homeowners, neighbors, police, and city officials, and the federal government enforcing and reinforcing a whites-only policy. These actions and inactions robbed individuals and families of the opportunity to live here and to build wealth as most of us have--through the increase in the value of our homes. For those few who overcame the resistance and did live in Mill Valley, harassment and threats followed, many of which the police refused to investigate.
With the current price of housing in Mill Valley, it has become harder and harder to be a vibrant community with people from all walks of life living here. If we wish to be a diverse city, we must actively pursue diversity. Equitable and affordable housing is the cornerstone of this effort.
We look forward to working with you.
Sincerely,
MV FREE’s Equitable and Affordable Housing Group
Mill Valley DEI Work Plan: Elements related to equitable and affordable housing
3. ADUs & JDUs: Encourage and allow Accessory Dwelling Units [ADUs] and Junior Dwelling Units [JDUs] . . . to increase affordable housing.
Already implemented
4. ADU: Application Process: Streamline process
Already implemented
5. ADA: Require all substantially remodeled affordable housing meet ADA requirements.
Staff Comments: This recommendation is already completed. Chapter 11A of the building code requires ground floor to multifamily units to be adaptable to meet the standards of accessibility. The City’s Multi-Family Design Guidelines state: “the needs of the elderly and disabled are an important consideration in design proposals. Universal design elements that meet the provisions of the Americans with Disabilities Act (ADA), as referenced in the California Building and Standards Code and related regulations in the City’s Municipal Code, must be adequately addressed.
Could staff please be more specific about what “adaptable to meet the standards of accessibility” means? We are asking the City to require that Universal access is met without the need for further construction or modification, so that there is no further cost to a person who requires such things as a wheel-in shower, a ramp or no step to the front door, a 5-foot turning radius in the bathroom, grab bars, taller toilets, 3-foot doors and hallways, or a wheel-under sink in both the bathroom and the kitchen. We are happy to show staff homes with some of these elements built into the original design for further clarification.
We consider this item: Ongoing
10. Commercial Buildings: Reimagine Mill Valley’s commercial buildings to allow local businesses to build affordable housing above their commercial establishments. Consider changing city planning to allow three or four stories on Miller and other commercial areas.
Staff Comments: This recommendation is already completed. All of Mill Valley’s commercial areas allow for residential units above the ground floor. Three stories are allowed on Miller Avenue. Four stories could be built utilizing the State’s Density Bonus Law.
In many cases, building a single story of housing above a commercial establishment would not be financially feasible. Our suggestion is that the City look for opportunities to allow an additional floor (if it would not have adverse impacts) in order to encourage affordable housing. If a landlord would be willing to make units permanently affordable, either as rental or ownership units, the city would allow an additional story.
We consider this item: Requires additional research/Council Direction
13. Waive fees: Waive fees for affordable housing.
Staff Comments: This recommendation is already completed. See Municipal Code Section 5.32.010. “Low- and moderate-income housing-- Exemption from fees, licenses and taxes.” Affordable housing is exempt from payment of 50% all City licenses, fees and taxes contained in certain sections of the Municipal Code. City staff can provide additional information to promote and advertise this exemption.
The need for additional affordable housing is so great that we recommended that the entirety of the fees be waived for affordable housing. We appreciate that the City exempts 50% of all City licenses, fees and taxes, but we recommend that the City exempt 100% of all City licenses, fees, and taxes for all deed-restricted affordable housing.
We consider this item: Partially implemented/In progress
11. City-Owned Land: Consider building affordable housing on city owned lands such as over the community center parking lot. Use “transfer of development rights,” e.g., save Kite Hill as a park by instead building over Alto Shopping Center. Use surplus school or church lands for new affordable housing.
City Resources: City Council, Planning & Building.
Staff Comments: City-Owned Land is an implementation measure under the current Housing Element. On May 25, 2021, the Mill Valley Housing Advisory Committee (HAC) reviewed an analysis of City-owned parcels that could feasibly be developed as an affordable housing project and financial resources required for the City to partner with a non-profit affordable housing developer. The analysis concludes that the parcel connected with the Public Safety Building at 1 Hamilton Drive is the most viable. The Committee determined that the sites analysis was sufficient for the City Council to consider next steps in partnering with a non-profit developer to pursue an affordable housing project at 1 Hamilton Drive. The City Council will hear the item at its June 21 meeting.
We enthusiastically endorse the City’s efforts to build permanently affordable homes in Mill Valley.
The Sub-committee has engaged a very experienced consultant who extensively analyzed physical and financial feasibility and determined 1 Hamilton is a feasible and very attractive site.
The City will be able to attract sufficient county, state and federal funds to finance the entire development with the City offering the land for free.
The consultant has identified ways to relocate ALL of the public parking and the public restroom in the area -- either on the adjacent public safety building or elsewhere on the same road -- without interfering with the use of Hauke Park. In addition, they have allowed for 1 1/2 parking spaces per household.
New multifamily housing in Marin (even at the extreme of 1000 additional units) will have little to no impact on MMWD water (<1%), because of the high efficiency in new buildings and the fact that most water in Marin is consumed through landscape watering.
Mill Valley has 6,600 total housing units, so this development will represent less than a 1% increase. Much of our traffic problem results from our local workforce needing to commute in and out of Mill Valley every day because it is too expensive to live here. The proposed development is in part targeted at people who work locally but presently need to commute from the outside. The fact that the PSB site is so close to 101 and commercial services, and is partially served by the Seminary on and off-ramps, makes the site better than much of Mill Valley from a traffic perspective. Final approval of the project will require a detailed traffic impact study and measures to mitigate adverse impacts. Independent of this proposed development, there needs to be improvements to the traffic flow in Mill Valley, especially the design of the East Blithedale-Highway 101 interchange.
We support residents—especially those who live in the neighborhood—having influence over the design and details.
We consider this item: In-progress
1. Affordable Housing Easement: This program would offer owners of homes valued at the median value or below an opportunity to apply for an affordable housing easement that would preserve the home as affordable in perpetuity in exchange for property abatement.
Staff Comments: This program requires additional research and input from the City Attorney. As noted in the referenced February 18, 2021, City Council staff report, “about 74% of property taxes go to the County or other agencies. The City receives a distribution of $25.8% from property taxes.” This program can be further researched for consideration as part of the Housing Element Update.
Leveraging the property taxes in this way is a cost-effective way to fund affordable housing. We recommend that Mill Valley officials strongly advocate for this county tax abatement.
An affordable housing easement would help current residents remain in Mill Valley and would create integrated affordable housing in the city. A non-profit Community Land Trust would be the most likely vehicle for receiving and managing the easement and ensuring affordability for generations to come.
We agree that this item: Requires additional research/Council Direction
Numbers 3-7: We believe that there is a need for proactive rental inspection and more oversight of rental maintenance but acknowledge that Mill Valley has an agreement with the County of Marin to be the lead agency for administering a rental inspection program for Mill Valley.
8. Rent Control - Rent control is worth a thorough investigation and consideration by the Council. Though research is mixed on rent control measures, according to Policy Link: “Market controls affect a lot of housing at once, at relatively low cost to the government. In places where very little land is available for development or where existing housing is too expensive to acquire, regulating the existing housing market may be the most practical way to take housing affordability to scale.”
City Resources: City Council, Planning & Building, Housing Advisory Committee.
Mill Valley has 2000 rental units. It is up to the city to initiate Rent Control on rental properties. Several Marin cities and unincorporated Marin have already passed laws like mandatory mediation and just cause. Pursuant San Francisco and Berkeley the city could also enforce rent control for specific kinds of units - for example apartment buildings or duplexes that are exempted from AB 1482 (The Tenant Protection Act of 2019). This is one of the most effective ways to create and maintain affordable housing in Mill Valley and to prevent price fluctuations that force long term Mill Valley residents out of their homes.
We consider this item: Needs additional direction, research, or consideration.
16. Pursue Regulatory Options to Expand Affordable, Equitable Housing Opportunities: This Report offers a variety of recommendations including, among others: permissive zoning and incentives to encourage the conversion of single-family homes into two homes.
16. Change the residential zoning regulations to allow all single-family houses in Mill Valley to be divided into two homes.
We understand that Council must balance a number of factors, including emergency evacuation, with affordable housing, but please don’t let the perfect be the enemy of the good. Rather than discard this recommendation because of legitimate concerns, we ask Council to discuss the conditions a house would have to meet in order to change its zoning so that it could be divided into two condominiums that could be bought and sold separately.
Currently, Mill Valley allows and encourages ADUs and JDUs in order to increase affordable housing. It also has spent time and resources on a home match program to provide affordable housing in underutilized homes.
Unlike ADUs and JDUs, changing the single-family zoning in certain areas of Mill Valley to allow owners to divide their houses into two condominiums would not increase square footage. Unlike the home match program, it does not require that adults be amenable to having roommates. It helps to tackle the problem of skyrocketing housing costs and provides a way for folks that have been priced out of the current housing market to purchase a home here. Funds from the sale can help retired Mill Valley residents to have a large enough nest egg to remain in Mill Valley and age in place. So many now need to move to fund their retirement.
It is important that the public and council members understand that this “form zoning” will mean that homes will look the same from the outside, except for a second door or entrance. The houses will be divided internally, so that the look and feel of the neighborhood would remain the same. The traffic and parking impact will be no greater than growing families with multiple cars. Research shows that wealthier families have more cars and make more car trips daily than less wealthy families. It is notable that the population of Mill Valley has remained the same while the traffic has increased markedly. Clearly the traffic problem is not due to a growing population.
We consider this item: Requires additional research/Council Direction
9. Short Term Rentals
Regulate Short-Term Rentals in ways that encourage STRs for cost-sharing rather than profit-making. Consider regulations recommended by the Sustainable Economies Law Center to:
Restrict STRs to primary residences only.
Require that a resident occupy the unit for a minimum amount of time before hosting STRs.
Prohibit remodeling or structurally altering units that would prevent the residence from being used as a residence in the future.
Prohibit short-term rental of single-family structures that were constructed less than five years prior to the date of application for an STR permit.
Set a cap of 30 nights per year.
We also recommend that the City provide all current STR owners (with properties that meet the criteria) with a rental license for long-term rental at the same time as these regulations are put in place so that there is a minimal loss of income for these homeowners.
Status: Needs additional direction, research, or consideration.
City Resources: City Council, Planning & Building, Housing Advisory Committee.
Staff Comments: The City was one of the first municipalities in Marin that has put rules in place to address this issue; the City maintains a contract with ost Compliance, a short-term rental compliance and monitoring company that serves local government agencies. Their services include maintaining a database of short-term rentals in Mill Valley with detailed information about rental listings on numerous platforms and sending letters to homeowners who are advertising their properties for short-term rental purposes to request that they comply with the City’s registration process. This system has worked well for Mill Valley and results in a high rate of compliance with the registration program. There are currently 101 registered STRs in Mill Valley. This program can be further researched for consideration as part of the Housing Element Update. Alternatively, Council may wish to consider the benefit of advancing this recommendation given the small number of short-term rentals in Mill Valley.
We strongly urge the City to advance this recommendation. The City may manage STRs well, but STRs take living units that could be long-term rentals off the market. Our recommendations allow for cost sharing, thus helping residents with their housing costs such as mortgage and taxes. Other towns simply ban short-term rentals. We think our recommendations, which come from the Sustainable Economies Law Center, strike the right balance.
The numbers of STRs in Mill Valley vary. In January, 2019, Mill Valley had 122 short-term rental registrations. The number of units had more than doubled between 2017 and 2019. Sixty-six were entire single-family units. Twenty were second units. Four were multi-family units. Fifteen were rooms in a single-family unit.
Based on the 2019 data and the current number of 101 STRs in Mill Valley, it is likely that if Mill Valley were to adopt the regulations we propose, we would have about 90 to 100 long-term rentals added to the Mill Valley rental market. This would have an immediate effect on the availability of much-needed housing in Mill Valley, without any additional building or impacts in terms of traffic or parking.
Sausalito and Tiburon are among the towns that prohibit short-term rentals.
We consider this item: Needs additional direction, research, or consideration
18. Investigate & Redress Historical Inequities: The City should investigate, acknowledge, and provide redress for the historic exclusion of people of color and plunder of Native Lands. Restitution and conservation easements benefiting descendants of those affected are among the appropriate remedies.
18.a. Restitution
Provide restitutions for descendants of those who were restricted by law from purchasing a home in Mill Valley. Marin County is the most racially segregated county in California, a deliberate result of “purposeful segregationist policies and practices” during a period of major population growth between 1940 and 1970. In Mill Valley, it was not uncommon for deeds to restrict home sales to Whites only, and today the City is 87% White. In contrast, Marin City is 32% White and 68% Black and people of color.
Status: Proposed alternative approach.
City Resources: City Council, City Manager, City Attorney, Planning & Building.
Other Resources: County of Marin, Board of Supervisors.
Staff Comments: Staff does not recommend pursuing this recommendation as written. However, staff proposes an alternative approach. At previous Council meetings, Councilmembers have expressed an interest in eliminating restrictive deed covenants. Staff has learned the County of Marin is considering developing a program to communicate and educate residents about the history of restrictive covenants and historically discriminatory government policies and develop a program to help residents identify and amend their deeds with the support and assistance from the County. Staff would participate in the development of this program, and then its subsequent implementation in Mill Valley. Staff recommends working with the County Board of Supervisors to determine next steps.
18.b. Conservation Easements - Work with Marin County and the appropriate Tribal government to create conservation easements to preserve Indigenous lands and land trusts for Indigenous management.
18.c.Transaction Tax - Increase the transaction tax on the sale of homes and commercial buildings to be designated to direct payments to descendants of the Indigenous peoples of this area and projects that foster and support the tribal histories and cultures of this area.
Status: Beyond scope of City. Not recommended.
Other Resources: State of California.
Staff Comments: These recommendations are beyond the scale or size of our local government and should be considered at the State-level. In September 2020, Governor Newsom released a Statement of Administration Policy on Native American Ancestral Lands to “encourage State entities to seek opportunities to support California tribes’ co-management of and access to natural lands that are within a California tribe’s ancestral land and under the ownership or control of the State of California, and to work cooperatively with California tribes that are interested in acquiring natural lands in excess of State needs.” The announcement also shared plans for other racial equity initiatives regarding indigenous groups, such as assessing place names, the formation of a “Truth and Healing Council” and a list of legislative priorities for California Native American communities.
American colonialism and genocide happened on a hyper local level, and there is nothing preventing Mill Valley from reaching out to existing Coast Miwok groups in Marin to hear what the City can and should do to work together. Waiting for state action is stalling and inaction. This isn’t really a place to pass responsibility around. The Huimen Coast Miwok were displaced by the mission system and further white settlers. Opening those lines of communication - between the Coast Miwok Tribal Council and the Federated Indians of Graton Rancheria, and the City of Mill Valley—will be an important first step.
We consider this item: In progress
We consider all of the following items: Needing additional research and consideration
20.b. Taxes - Consider a sales or parcel tax for an affordable housing fund.
Status: Not recommended.
City Resources: City Council, Planning & Building, Housing Advisory Committee.
Staff Comments: Staff does not recommend pursuing this recommendation. The City does have an existing Affordable Housing Fund. Staff does not foresee such a funding measure raising enough money to be significantly impactful given the projected cost of a development project and would have significant hurdles in time and resource with limited chance of successful passage requiring a 2/3 majority of voters.
20.c. Estate Giving - Encourage a program of estate giving.
Status: Needs additional direction, research, or consideration.
City Resources: City Council, Planning & Building, Housing Advisory Committee.
Staff Comments: This recommendation needs additional direction, research, or consideration. The City has an Affordable Housing Trust Fund to accept funds dedicated for housing.
20.e. Distressed Mortgages - Secure commitments from local banks and credit unions and the State of California to work with the City of Mill Valley and its non-profit partners (that may secure private capital) to purchase current and future distressed mortgage notes to prevent foreclosures and develop new affordable ownership.
Status: Beyond scope of City. Not recommended.Other
Resources: State of California, Marin Housing Authority.
Staff Comments: This recommendation is outside the City’s purview. Staff recommends that the Marin Housing Authority should be the lead on this recommendation.
20.f. Trust Fund - Raise the 1% building permit fee that funds the Affordable Housing Trust Fund.
Status: Not recommended
City Resources: Planning & Building, Housing Advisory Committee.
Staff Comments: Currently, the Affordable Housing Permit Fee is scheduled to be reviewed in 2023 to determine if funds are being adequately used.
20.g. Home Repair Grants or Loans - Provide grants or low/no interest home repair loans to homeowners that meet gross household income requirements so that homes are healthy and safe for the current occupants and are preserved rather than replaced.
Status: Beyond scope of City. Not recommended.
Other Resources: Marin Housing Authority.
Staff Comments: This recommendation is outside the City’s purview. Marin Housing Authority has this program available to Marin County residents and is highlighted on the City’s website.