Housing Department
Affordable Housing Workshop
William Huang2.7.11
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Housing Department
Discussion Issues
1. Funding Priorities
2. Inclusionary Housing Modifications
3. Project Housed
4. Permanent Sources
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Housing Department
Working Principles
• Affordable housing is a right• Economic and ethnic diversity is critical to a
dynamic city• Affordable housing is a Pasadena priority• Projects need to be geographically dispersed• Resources are targeted to lowest income
households• Resources are highly leveraged• Solutions should be innovative and effective• Design and property management should be
of the highest quality
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Housing Department
Affordable Housing Programs• Rental Assistance
> Section 8 > Shelter Plus Care> Supportive Housing
• Housing Production> Affordable Housing Development Assistance> Inclusionary Housing> First Time Homebuyer> Single Family Rehab
• Homeless Prevention & Rapid Re-Housing
• www.PasadenaHousingSearch.com
Housing Department
#1 Funding Priorities
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Housing Department
Housing Needs
Regional Housing Needs Assessment -- 2006-2014
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2006-2014 RHNA Goal 711 452 491 1,215
Units Produced 221 122 338 3,069
Remaining RHNA 490 330 153 0
Very Low Low Moderate Above Moderate
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Housing Department
Housing Production
• Affordable Housing Development > Completed Units
996 Rental, 204 Ownership 1,003 VL/L, 197 Mod
> Pipeline Units 171 Rental, 40 Ownership 198 VL/L, 13 Mod
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Housing Department
Housing Production
• Non-City Assisted Units> 871 Rental
• Inclusionary & Density Bonus Units> 308 Rental, 50 Ownership> 189 VL/L, 169 Mod
• First Time Homebuyer Loans> 145 Total Loans (1999 - present)
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Housing Department
HOUSING PRODUCTION Affordable Housing Inventory
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Housing Department
Arrival of Senior Bubble
Senior Bubble• In 2008, 3.2 million boomers became
eligible for Social Security• 7,000-10,000 boomers turn 65 everyday • 17 more years of boomers to come
LA County Elder Index• Senior renter required income: $23,000• 54% age 65+ (312,000 seniors) in LA
Co. have less income• Insight & UCLA Ctr. for Health Policy
Research
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Housing Department
Prelim Funding Priorities• 1. Permanent Supportive Housing
> Chronic Homeless Individuals> Formerly Homeless Families> At-Risk of Homeless Families &
Individuals> Need defined by annual homeless
count• 2. Very Low and Low Income Units
> Seniors> Families> Needs defined by RHNA numbers
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Housing Department
Prelim Funding Priorities•3. Pipeline Projects
> Predevelopment Boadway Apts Heritage
Square Nehemiah
Court Herkimer Arms Douglas Oaks Lamanda Park
> Construction Hudson Oaks Parke Street Washington
Classics
Housing Department
#2 Inclusionary Housing Modifications
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Housing Department
Inclusionary Housing
• Basic Requirements> 10 units or more> Rental requires 10% low and 5% mod> Ownership requires 15% mod
• Options> Build on or off site> Pay In Lieu Fee> Land Donation
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Housing Department
Inclusionary Housing
• Inclusionary & Density Bonus Units > 308 Rental, 50 Ownership> 189 VL/L, 169 Mod
• In Lieu Fees Paid> 9% Rental Projects> 91% Ownership Projects
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Housing Department
HOUSING PRODUCTIONInclusionary In-Lieu Fees
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Housing Department
HOUSING PRODUCTIONIn-Lieu Fees w/ Leveraging
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Housing Department
HOUSING PRODUCTION Inclusionary In-Lieu Fees
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Housing Department
Inclusionary Preliminary Ideas
• Incentivize building units over in lieu fee option
• Restrict in lieu fees to production of low and very low units
• Adjust rental requirement to 15% low (i.e., eliminate 5% mod)
• Provide larger credit for very low units• Increase inclusionary requirement in
TOD’s to 20%• Follow the impacts of the Palmer Case
Housing Department
#3 Project Housed
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Housing Department
Homeless Count
• 2011 Homeless Count was conducted on 1/26/11
• 2010 point-in-time count is 1,137 persons
• 20% decrease between 2005-2008, 17% increase between 2008-2010
• 57% of persons counted were homeless 1 year or more
• 28% are disabled
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Housing Department
Project Housed
• Chronic Homeless• Humane • Economical
> Emergency Rooms> Courts> Jails
• Vulnerability Index
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Housing Department
Vulnerability Index
Dr. Jim O’Connell, Healthcare for the Homeless, Boston, MA:
“The painfully obvious lesson for me has been the futility of solving this complex social problem solely with new approaches to medical or mental health care…I dream of writing a prescription for an apartment, a studio, an SRO, or any safe housing program, good for one month, with 12 refills.”
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Housing Department
Vulnerability Index
• Identify & house the most fragile persons> More than three hospitalizations in a year> More than three emergency room visits in the
previous three months> Aged 60 or older> Cirrhosis of the liver> End-stage renal disease> History of frostbite, immersion foot, or
hypothermia> HIV+/AIDS> Tri-morbidity: co-occurring psychiatric,
substance abuse, and chronic medical condition
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Housing Department
Vulnerability Index
• Partner with Common Ground> LA Skid Row > Santa Monica> San Diego> Hollywood
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Housing Department
Project Housed Proposed Next Steps
• Identify nonprofit organization with capacity and funding to be program manager
• Utilize Vulnerability Index• Find scattered sites housing
similar to Shelter Plus Care Program > 67 currently housed> 83% in housing after 1 year
• Permanently house the top 15 - 20 persons
Housing Department
#4 Permanent Sources
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Housing Department
Anticipated Available Funding
Housing Development Revenue and Units Funded FY 2012-2015
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Inclus. 0 0 0 0
HOME 459,025 459,025 459,025 459,025
T ax Inc. 1,161,980 1,200,210 1,244,090 4,705,128
FY 2012 $ 1,621,005 14 uni ts FY 2013 $ 1,659,235 14 uni ts FY 2014 $ 1,703,115 14 uni ts FY 2015 $ 5,164,153 43 uni ts
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Housing Department
Redevelopment Tax Increment Housing Set Aside Funds
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Housing Department
Documentary Transfer Tax
• $744,238 in FY 2010 at $0.55 per $1,000
• $3.86M would have been raised at LA rate of $4.50
• 32 estimated units (if $3.86M allocated to affordable housing)
• 2/3rd voter approval
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Housing Department
Permanent Funding Sources
• Commercial Linkage Fee> $0.64 - $1.06 /SF in West Hollywood > $1.69 - $2.11/SF in Sacramento > $4.79/SF in Santa Monica> $19.00 - $20.00/SF in San Francisco
> If located in Santa Monica, IDS would have generated $766,400 for affordable housing