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ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 622 ) page 1 of 13 Jurisdiction 1/1/217 - Table A Annual Building Activity Report Summary - New Construction Very Low-, Low-, and Mixed-Income Multifamily Projects Housing Development Information Housing with Financial Assistance and/or Restrictions Housing without Financial Assistance or Restrictions 1 2 3 4 5 5a 6 7 8 Project Identifier (may be APN No., project name or address) Unit Category Tenure R=Renter O=Owner Very Low- Income Affordability by Household Incomes Low- Income Moderate- Income Above Moderate- Income Total Units per Project Est. # Infill Units* Assistance Programs for Each Development See Instructions Units See Instructions Note below the number of units determined to be affordable without financial or deed restrictions and attach an explanation how the jurisdiction determined the units were affordable. Refer to instructions. Magnolia Crossing Habitat for Humanity at Stanford Addition Habitat for Humanity at Rialto Ranchos Market-rate multifamily Development (APNs 4919119 and 49954121) 5+ R SF SF 5+ O O R 14 1 5 1 226 24 48 1 5 226 RDA RDA RDA Market rents are generally affordable to moderate-income households (9) Total of Moderate and Above Moderate from Table A3 244 (1) Total by income Table A/A3 2 48 518 762 542 1,42 (11) Total Extremely Low-Income Units* * Note: These fields are voluntary Table Footnote: Magnolia Crossing is deed-restricted and requires at lease 24 of the units to be affordable to Extremely-Low Income, Very-Low Income, Lower Income, or Moderate Income Households. Of these 24 units, 14 must be leased to Lower Income and below households. Therefore, this analysis assumes that 14 of the units are Low-Income and 1 are Moderate-Income.

page 2 of 13 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 622 ) Jurisdiction 1/1/217 - Table A2 Annual Building Activity Report Summary - Units Rehabilitated, Preserved and Acquired pursuant to GC Section 65583.1(c)(1) Please note: Units may only be credited to the table below when a jurisdiction has included a program it its housing element to rehabilitate, preserve or acquire units to accommodate a portion of its RHNA whichmeet the specific criteria as outlined in GC Section 65583.1(c)(1) Affordability by Household Incomes Activity Type Extremely Low- Income* Very Low- Income Low- Income TOTAL UNITS (4) The Description should adequately document how each unit complies with subsection (c )(7) of Government Code Section 65583.1 (1) Rehabilitation Activity (2) Preservation of Units At-Risk (3) Acquisition of Units (5) Total Units by Income * Note: This field is voluntary Table A3 Annual building Activity Report Summary for Above Moderate-Income Units (not including those units reported on Table A) 1. Single Family 2. 2-4 Units 3. 5+ Units 4. Second Unit 5. Mobile Homes 6. Total 7. Number of infill units* No. of Units Permitted for Moderate 244 244 No. of Units Permitted for Above Moderate 518 518 * Note: This field is voluntary

ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 622 ) page 3 of 13 Jurisdiction 1/1/217 - Table B Regional Housing Needs Allocation Progress Permitted Units Issued by Affordability Enter Calendar starting with the first year of the RHNA allocation period. See Example. Very Low Low Moderate Income Level Non-deed restricted Non-deed restricted Non-deed restricted RHNA Allocation by Income Level 2,321 1,145 1,18 213 and 214 1 215 216 217 218 2 3 456 395 5 4 2 1 47 5 219 22 6 7 221 8 222 9 Total Units to Date (all years) 25 1 1,321 Total Remaining RHNA by Income Level 2,321 1,12-313 Above Moderate 1,844 854 442 689 542 2,527-683 Total RHNA by COG. Enter allocation number: Total Units 6,328 854 898 1,89 1,42 3,883 2,445 Remaining Need for RHNA Period Note: units serving extremly low-income households are included in the very low-income permitted units totals. Table Footnote (1): In 217, there were 762 building permits issued for single family units. Of these single-family units, 32 percent (244 units) were estimated to be sold at prices affordable to moderate-income households and the remaining 68 percent (518 units) were estimated to be above-moderate income. See the General Comments section below for details on this methodology.

1/1/217 - page 4 of 13 Name of Program Regional Collaboration Program 1: Regional Collaboration on Housing Opportunities Objective Status of Program Implementation Continue to participate in the Countywide Housing Element Technical Committee to collaborate on housing program implementation and regional issues including, disadvantaged unincorporated communities (SB 244), infrastructure challenges, farmworker housing, homelessness, and fair housing. City Staff meet on a quarterly basis with the Countywide Housing Element Technical Committee, which includes all 13 participating jurisdictions, to work towards the goals and objectives outlined in the Housing Element by sharing best practices, exploring opportunities for further collaboration, and making the best use of limited resources. The Countywide Housing Element Technical Committee will meet at least biannually to evaluate successes in implementation of programs and to identify gaps and additional needs. The Committee will meet annually with the California Department of Housing and Community Development (HCD) to discuss funding opportunities and challenges in implementation of programs, and seek technical assistance from HCD and other State agencies in the implementation of housing programs and the pursuit of grant funding. The Committee will meet periodically with Fair Housing of Central California to discuss fair housing issues and opportunities for education. The Committee will advocate on behalf of the Fresno region for more grant funding for affordable housing and infrastructure improvements. Continue to seek partnerships with other jurisdictions in the region and other agencies (such as the Housing Authority), housing developers, community stakeholders, and agricultural employers/employees to explore viable options for increasing the availability of farmworker housing in suitable locations in the region. Develop a directory of services and resources for lower-income households available in the region, and review and update it annually. Make the directory available on City/County websites and at City/County offices.

1/1/217 - page 5 of 13 Program 2: Review Annexation Standards in Memorandum of Understanding The County of Fresno and the cities within the County shall work together to review and revise, as deemed appropriate by all parties, the standards for annexation contained in the Memorandum of Understanding between the County and the cities. The Tax Sharing Agreement limits the City s ability to annex land unless there is eminent development on half of the area, which includes an approved tentative map, or site plan review. City Staff has had discussions with the County of Fresno to propose language that would allow the City to prezone and annex land for purposes of meeting the RHNA, without the requirement for entitlement. Adequate Sites Program 3: Provision of Adequate Sites City Staff are continually identifying properties that could be adequate to accommodate residential development, and making efforts to contact and meet with these property owners. City Staff are striving to re-designate several properties simultaneously as one General Plan Amendment. Maintain and annually update the inventory of residential land resources. Provide the inventory on the City website and make copies available upon request. Monitor development and other changes in the inventory to ensure the City has remaining capacity consistent with its share of the regional housing need. Actively participate in the development of the next RHNA Plan to better ensure that the allocations are reflective of the regional and local land use goals and policies. Program 4: Rezoning for RHNA Provide adequate zoning on at least 221 acres of land by December 31, 216 to cover the unaccommodated need from the Fourth Cycle RHNA of 4,425 lower-income units. 216 The Clovis City Council will be adopting a Resolution to summarize the steps that the City has taken to address housing needs within the city of Clovis and affirm the City's committment to meeting its Fourth and Fifth Cycle RHNAs. The Resolution affirms the City's plan to continue an aggressive rezone effort to increase multifamily, higher-density housing development to cover its unaccommodated need from the Fourth Cycle RHNA. (Note: Resolution was adopted 3/12/18) If annexation of the prezoned sites is not completed within three years of adoption of the Housing Element, the City will conduct an analysis to determine if adequate capacity exists on the remaining sites in the inventory to meet the Fifth Cycle RHNA. If the City cannot identify adequate capacity, the City will rezone sites within four years of adoption of the Housing Element to meet the RHNA. The rezoned sites will meet the criteria for lower-income housing described above. 219 In addition to adopting the Resolution, the City is actively working toward the third annexation of the Community Center North under the Shaw- Leonard Northwest Reorganization.

1/1/217 - page 6 of 13 Program 5: Monitoring of Residential Capacity (No Net Loss) Develop and implement a formal evaluation procedure pursuant to Government Code Section 65863 by 216. Monitor and report through the HCD annual report process. 216 City Staff are working towards developing and implementing a formal evaluation procedure pursuant to Government Code Section 65863 by early 219. City Staff are submitting APRs for 216 and 217 to fulfilll annual reporting requirements to monitor and report throught the HCD annual report process. If rezoning/upzoning is required to replenish the sites inventory for meeting the RHNA shortfall, the sites shall be large enough to accommodate at least 16 units per site at a minimum density of 2 units per acre, and shall be rezoned within two years. 218 Program 6: Water and Wastewater Service Continue to monitor water and wastewater capacity and make improvements, as appropriate and feasible, to better serve existing development and strive to accommodate the RHNA. Establish procedures by the end of 216 for granting priority water and sewer service to developments with lower-income units in compliance with California Government Code Section 65589.7. 216 The water and wastewater service masterplans respond directly to the land use plan established by the General Plan and apply appropriate design safety factors to insure that adequate capacity is provided to all. These service plans provide equal and comprehensive consideration to all land uses and do not necessarily grant priority to any particular type of housing unit. The water and wastewater masterplans are in the final stages of being updated to provide full service to the plan area as well as strategies to implement capacity enhancements as systematic growth occurs.

1/1/217 - page 7 of 13 Affordable Housing Development and Preservation Program 7: Affordable Housing Incentives Continue to seek partnerships and regularly meet, at least annually, with other agencies (such as the Housing Authority), housing developers, community stakeholders, and employers to discuss and pursue viable opportunities for providing affordable housing. Continue to offer incentives such as gap financing, density bonus, streamlined processing (such as preapplication consultation to identify potential issues early on and concurrent processing of required permits to the extent feasible) to facilitate the development of affordable housing, with an emphasis on housing opportunities for very low and extremely low income households, as well as special needs populations, such as the elderly, disabled (including developmentally disabled), farmworkers, the homeless, and those at risk of becoming homeless. City Staff are working with affordable housing developers to expand affordable housing development opportunities. During the past year, Clovis has provided subsidies to the following affordable housing developments/programs: 1) Magnolia Crossing - This is a 48 unit, senior, assisted living facility built developed by Innovative Living Solutions of California. Clovis donated the land for the project. In exchange, 24 of the units are restricted to rental to low-income seniors; 2) Rialto Ranchos Subdivision - This is 1-units of single-family housing developed in conjunction with Habitat for Humanity Fresno County. Clovis donated the land for the project, and engineered and paid for the site improvements and infrasture. Five of the 1 building permits were pulled in 217, and construction was completed on 7 of the units in 217 (complete buildout of subdivision will be completed by Summer 218); 3) Stanford Addition Infill - Clovis transferred ownership of 3 scattered site, vacant parcels in the Stanford Addition to Habitat for Humanity Fresno County for development of 3 single-family homes to be occupied by low-income households. Construction of 1 home is underway, and the 2 remaining homes will be started in Summer 218; 4) First-Time Homebuyer Program - In the past year Clovis has provided FTHB assistance to 8 low-income homebuyers for the purchase of a home in Clovis; 5) In the past year, Clovis provided new mobile homes to 15 very-low income mobile home owners who were living in severly dilapidated mobile homes; 6) In the past year, Clovis provide home repair grants to 77 low-income households to correct critical health and safety-related deficiencies in the home. Continue to streamline the environmental review process for housing developments to the extent possible, using available State categorical exemptions and Federal categorical exclusions, when applicable. pursue State, Federal, and other funding opportunities to increase the supply of safe, decent, affordable housing in Clovis for lower income households (including extremely low income households), such as seniors, disabled (including persons with developmental disabilities), farmworkers, the homeless, and those at risk of homelessness. Expand the City s affordable housing inventory by 7 units over the next eight years 16 extremely low income, 24 very low income, and 3 low income units. 223

1/1/217 - page 8 of 13 Name of Program Objective Status of Program Implementation Program 8: Farmworker Housing There were no applications for farmworker housing in 217. Continue to support and encourage other agencies and housing developers, such as the Fresno Housing Authority and Self-Help Enterprises, in the application of funds for farmworker housing, including State HCD and USDA Rural Development loans and grants and other funding sources that may become available. Continue to offer incentives such as gap financing, density bonus, streamlined processing to facilitate the development of farmworker housing. monitor the status of farmworker housing as part of the City s annual report to HCD on Housing Element progress and evaluate if City efforts are effective in facilitating the provision of farmworker housing. If appropriate, make necessary changes to enhance opportunities and incentives for farmworker housing development. Program 9: Preserving Assisted Housing Monitor the status of any HUD receipt/approval of Notices of Intent and Plans of Action filed by property owners to convert to market rate units. Clovis has not received any notices of intent or plans of action filed by property owners to convert to market rate units. City Staff continue to monitor the objectives of this program. Identify non-profit organizations as potential purchasers/ managers of atrisk housing units. Explore funding sources available to purchase affordability covenants on atrisk projects, transfer ownership of atrisk projects to public or non-profit agencies, purchase existing buildings to replace at-risk units, or construct replacement units. Ensure the tenants are properly noticed and informed of their rights and eligibility to obtain special Section 8 vouchers reserved for tenants of converted HUD properties.

1/1/217 - page 9 of 13 Program 1: Encourage and Facilitate Accessory Units (Second Units) By 218, consider fee reductions for second units. By 219, implement a public education program advertising the opportunity for second units through the City website and at the planning counter. 218 219 In 217, the State adopted additional regulations for ADUs. The City is in the process of modifying its Development Code and fee structure to comply with the ADU legislation. In 217, Clovis implemented a Cottage Home Program to encourage infill residential development of 4-square foot second units that have alley access. Clovis funded the cost of preparing and approving three sets of building plans which can be used for free by anyone participating in the program. This represents approximately $9, savings. In addition, development fees are exempted for the cottage homes and there is no requirement for separate utilities for the secondary unit. The City is advertising the Cottage Home Program on the City website, social media, and media mail. Removal of Governmental Constraints Program 11: Zoning Code Amendments Amend Zoning Code to address State law requirements within one year of Housing Element adoption. 217 City Staff are working toward amending the Development Code to comply with Program 11 expects to complete by the end of 218. Review residential parking standards for studio and one-bedroom multifamily units and take action by 217 to modify the requirements based on the findings of the review. 217 review the effectiveness and appropriateness of the Zoning Code and process any necessary amendments to remove or mitigate potential constraints to the development of housing. Program 12: Lot Consolidation and Lot Splits Assist interested developers/property owners in identifying opportunities for lot consolidation or lot splitting. City Staff continue to identify and process requests for lot consolidation and lot splitting pursuant to the Subdivision Map Act. Process requests for lot consolidation and lot splitting concurrent with other development reviews. Encourage the use of master plans/specific plans to provide a cohesive development strategy for large lots. Program 13: Monitoring of Continue to monitor the various fees Planning and Development Fees charged by the City to ensure they do not unduly constrain housing development. As appropriate, consider incentives such as deferred or reduced fees to facilitate affordable housing development. City Staff continue to complete a comprehensive update of impact fees, as well as fees for services provided, at least once every 2 years. In this process, consideration is given to appropriately assigning cost of infrastructure on the basis of fair and equitable share of the cost. In addition, the City has implemented short-term incentive programs to incentivize infill development, which includes affordable housing projects. The Core Area Fee Reduction was authorized by Council in 213 to reduce development fees for infill development in the core area south of Sierra Avenue and west of Locan Avenue. In some cases, the program reduces fees by as much as 7 percent.

1/1/217 - page 1 of 13 Housing Quality Program 14: Housing Rehabilitation Program Continue to apply for CalHOME funds to maintain the housing rehabilitation program. Promote Home Rehabilitation Program on City website, at public counters, and to income-eligible households identified through the Code Enforcement program. In 217, Clovis provided new mobile homes to 15 very low income mobile home owners who were living in severly dilapidated mobile homes and home repair grants to 77 low-income households to correct critical health and safety-related deficiencies in the home. Clovis continues to apply for the very important funds as they become available. The City continues to promote the Home Rehabilitation Program. Program 15: Code Enforcement Continue to use code enforcement and substandard abatement processes to bring substandard housing units and residential properties into compliance with city codes. Refer income-eligible households to housing rehabilitation programs for assistance in making the code corrections. Clovis formed a Code Enforcement Team which uses Staff from the Building Department, Affordable Housing Department, City Manager's Office, Police Department, Fire Department, Public Utilities, and Legal Counsel to work together to bring substandard housing units and residential properties into compliance with City Code. The Code Enforcement Team brings substandard housing units and residential properties into compliance with city codes, and makes referrals to City housing rehabilitation programs. Conduct a housing conditions survey by 22 to assess the extent of housing rehabilitation needs, as resources are available. 22 Housing Assistance Program 16: Homebuyer Assistance Program Continue to pursue CDBG, HOME, and other funding opportunities annually to maintain the first time homebuyer assistance program. Clovis received a $1,, grant from HCD to operate a first-time homebuyer program. In 217, FTHB assistance has been provided to 8 lowincome households. Clovis will continue to apply for funds for this program as they become available. Program 17: First-Time Homebuyer Resources Prepare promotional materials by 216 and promote available homebuyer resources on City website and public counters. review funding resources available at the state and federal levels and pursue as appropriate to provide homebuyer assistance. 216 City Staff continue to seek additional funding from State and Federal resources to provide homebuyer assistance. Because the demand for Clovis' FTHB funds far exceeds the amount available, City Staff refer potential homebuyers to the CalPlus Conventional Program and CalHFA programs on a regular basis.

1/1/217 - page 11 of 13 Program 18: Energy Conservation Consider incentives to promote green building techniques and features in 217, and as appropriate adopt incentives by 218. Continue to promote HERO program by providing a link on the City website and making brochures available at City counters. 217; 218 The City supports and promotes the HERO program and PG&E programs that support engercy conservation. City Staff provide information about these programs to Clovis residents on a regular basis, including referals to the Fresno Economic Opportunities Commission's Weatherization Program and Solar Program for low-income clients needing energy efficiency repairs. City staff print and give potential recipients the applications. Continue to promote and support Pacific Gas and Electric Company programs that provide energy efficiency rebates for qualifying energy-efficient upgrades by providing a link on the City website and making brochures available at City counters. Continue to incorporate conservation measures in housing rehabilitation programs. Expedite review and approval of alternative energy devices (e.g., solar panels). Program 19: Housing Choice Vouchers Prepare promotional materials by 216 and provide information on the HCV program on City website and at public counters. 216 City Staff provide refferals to property owners for HCVP and work regionally to increase funding to all affordable housing agency partners. Refer interested households to the Fresno Housing Authority and encourage landlords to register their properties with the Housing Authority for accepting HCVs. Work with the Housing Authority to disseminate information on incentives for participating in the HCV program throughout city neighborhoods with varying income levels to promote housing opportunities for all city residents.

1/1/217 - page 12 of 13 Program 2: Fair Housing Clovis continues to operate under the Fair Housing Assessment that the Conduct Fair Housing Assessment as City prepared in 21, which was approved by HUD, because HUD required by HUD on a regular basis delayed submission of new plans until they release a new planning tool. (every five years). The City continues to adhere to HUD's guidance on the FHA. City Staff refer all fair housing related complaints to the Fair Housing Council of Work collaboratively with other Central California, and also distribute the California Guide to jurisdictions in the region to provide Tenant/Landlord Requirements. education to lenders, real estate professionals, and the community at large. Provide information and written materials on fair housing rights, available services, and responsible agencies in English and Spanish. Distribute materials at libraries, community facilities, City offices and public counters, and on the City website by 216. 216 Refer fair housing complaints to HUD, DEFH, Fair Housing Council of Central California, and other housing agencies, as appropriate.

1/1/217 - page 13 of 13 General Comments: Estimating moderate-income single-family units (217) Staff estimated the number of single-family units that were affordable to moderate-income units during each reporting year using the following methodology: 1. Looked up actual sale prices by address on Zillow.com for a sample (15 percent) of units that were issued permits; 2. Calculated an average ratio of the building permit valuation for the sample units by dividing the sale price by the valuation price (1.44); 3. Applied the average valuation-to-sale price ratio to the building permit valuation for all other permits to calculate an estimated sale price; 4. Calculated a maximum affordable sale price for moderate-income households ($31,553) based on the State area median income for Fresno County, using the following assumptions: a. 3.5 percent down payment (assuming an FHA loan) b. 4.5 percent interest rate; c. 3-year mortgage term; d. Assumes taxes, mortgage insurance, and homeowners insurance for 21 percent of monthly payment; and e. Assumes 35 percent of income spent on housing. 5. Counted the number of units with either an actual sales price or estimated sales price within the affordability range for moderate-income households.