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AFFORDABLE HOUSING IN CRISIS

AFFORDABLE HOUSING IN CRISIS. A Year Of Losses. Redevelopment Inclusionary Zoning (IZ) County of Sacramento IZ Court Decisions Impacting Legality of IZ Disinvestment in Homeless Programs No PSH developments in the pipeline. What Is Affordable Housing?.

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AFFORDABLE HOUSING IN CRISIS

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  1. AFFORDABLE HOUSING IN CRISIS

  2. A Year Of Losses • Redevelopment • Inclusionary Zoning (IZ) • County of Sacramento IZ • Court Decisions Impacting Legality of IZ • Disinvestment in Homeless Programs • No PSH developments in the pipeline

  3. What Is Affordable Housing? • By federal government standards, housing is considered “affordable” if households pay no more than 30% of their gross income for rent and utilities. • More than half of California’s low income households pay more than 50% for housing. • This leaves less for other necessities like food and medicine, forcing these families to make difficult choices.

  4. The Impact • Who is impacted by affordable housing? • Working poor • Seniors • Persons with disabilities • People reliant on govt. assistance • Students • Homeless People

  5. Post-Housing Bubble Realities • Foreclosure crisis impact on renters • Homeownership has gotten more affordable • But buying is much more restrictive • Increase demand = increase cost in rental market

  6. RisingRents (April 2011-April 2012) • Nationally: • Median monthly rent = $1,417 • A 3.2% increase in one year • Sacramento Metro-Area • Median monthly rent = $1,230 • A 1.3% increase in one year • The housing crisis has resulted in higher rents

  7. CA = $26.02 (3nd in US)

  8. Sacramento CountyHow Much Does It Cost to Rent? Hourly wage needed to afford: • Studio Unit = $13.62 • One-bedroom Unit = $15.48 • Two-bedroom Unit = $18.88 • Three-bedroom Unit = $27.25 *LOCKED OUT 2008- CA BUDGET PROJECT

  9. Extremely Low Income($15,000 – $22,000) • Low-wage earners • California Minimum Wage Full-time Annual Income = $16,640 • Unemployment • Max weekly - $450 • Annually - $23,400 • Average weekly - $242 • Annually - $12,584

  10. Extremely Low Income($15,000 – $22,000) • Families on govt. assistance • SSI • 2010 Average benefit $1,067 x 12 months = $12,804 • If under 25, $560 x 12 months = $6,720 • General Assistance • $250 per month • Only lasts 3 months

  11. Redevelopment… Gone. • Feb. 1st • All state-wide redevelopment agencies are shuttered • Mixed response largely due to Mermaid Bars • BUT 20% HAD TO GO TO AFFORDABLE HOUISNG • 1.2 Billion Dollars… gone • Crucial to building AH developments

  12. Redevelopment Triage • SB 654 Steinberg / AB 1585 Perez • Attempt to keep Low and Moderate Income funds available for affordable housing • Steinberg withdraws - concerned about state budget

  13. Inclusionary Zoning In Danger • County of Sacramento • Considering eliminating parts of their inclusionary zoning requirement • Court Decision • Ct ruling prevent inclusionary requirements in rental housing

  14. Current County Inclusionary Policy • At least fifteen (15) percent of the development project’s units shall be units leased or sold at an affordable rent • The breakdown: low, very low, and extremely low income households • 6% - Low Income (80% of AMI) • 6% - Very Low Income (50% of AMI) • 3% - Extremely Low-Income (30% of AMI) • Groundbreaking

  15. IZ Policy Under Attack • The IZ requirement of 15% is likely to be targeted for removal • There is likely no support for keeping the status quo of the BoS • The groundbreaking ELI component will be lost • No new program for ELI is being discussed

  16. Current City Inclusionary Policy • City of Sacramento • Mixed-Income Housing Ordinance requires • 10% of the units in a Residential Project be affordable to low income households • 5% to very low income households • Within New Growth Areas

  17. Areas Subject To Sacramento Counties Mixed Income Housing Policy

  18. Palmer Case • Costa-Hawkins – State law regarding rent control. • It allows landlords to set the initial rent amount for a new unit and to increase the rent to market levels whenever the unit vacated. (vacancy decontrol) • Ct found that the city’s affordable housing policy, which required 15% affordable units, took away the landlords right (per costa-hawkins) to set the initial rental rate because it limited the initial rate that the landlord could charge. • New rental housing cannot be required in new rental developments unless they received assistance or incentives from local government

  19. Palmer Case - Two City Projects • Aspen 1 • Total Units: 960 • Low income units with IZ: • 96 Low Income • 48 Very Low Income • Greenbriar • Total Units: 2991 • Affordable Rental Units: 449 • Low Income Units: 299 • 95 for Seniors • Very Low Income Units: 150 • 47 for Seniors

  20. Sacramento City Palmer Response • The City intends to simply not enforce current law that is not in compliance with State Law • Unsure which projects are impacted by Palmer • Projects that have been in the works for years may not require IZ

  21. Other Palmer Responses • SB 184 – Leno • Unsuccessful Two-Year Bill • City of San Mateo – • Believe that the Palmer case was wrongly decided. If a developer challenges a city’s inclusionary housing requirements, San Mateo City Attorney Shawn Mason thinks an appeals court could side with the city.

  22. Without Inclusionary • No requirement • Expansion areas with no affordable housing • Increasing pressure on existing communities • Workers living farther from jobs • Increase economic segregation

  23. Disinvestment in Homeless Programs • Permanent Supportive Housing (PSH) – • A combination of permanent community-based housing and the provision of ongoing supportive services to homeless people with disabilities • Fosters the greatest independence or self-sufficiency possible • There is no PSH in the pipeline

  24. The Losses • Redevelopment • County of Sacramento Inclusionary • Palmer Decision • Disinvestment in Homeless Programs

  25. We Need A Bigger Voice • Who is impacted by affordable housing? • Working poor • Seniors • Persons with disabilities • People reliant on govt. assistance • Students • Homeless People

  26. Home Is Where Stability Begins • Intersection of affordable housing and… • Food Insecurity: Less funds are available for healthy food • Education: Children don’t have a place to do homework • Health care and social service access: • Lack of address can be a barrier • Optimal care often requires a home • Economic Growth: Lack of address #1 barrier

  27. Your Chance To Be Heard • Housing Element Update • County • Meeting with Stakeholders in May • Planned public participation meeting – Sept 6th. • Completed by Oct 2013 • City • Completed by Oct 2013 • You Won’t Have Another Chance Until 2021!!!

  28. Thank you • Tyrone Buckley • 916-455-4900 ext. 307 • tyrone@sachousingalliance.org

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