ebho @ ca on fire april 2014
DESCRIPTION
East Bay Housing Organizations (EBHO) Presentation at California on Fire conference, April 26, 2014TRANSCRIPT
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East Bay Housing Organizations
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Agenda
1. Current Landscape- Development and Housing Trends in the East Bay
2. Causes and Contributors of Affordable Housing Crisis and Displacement
3. What are Communities Doing to Address These Concerns?
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What’s Happening in the East Bay?
1. Affordable housing crisis
2. Threat of displacement of low- and moderate- income populations and communities of color
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Affordability Crisis
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Renters Earn Half of Homeowners Income in the Bay Area
Bay Area Owner Median Income and Renter Median Income 2010
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Alam
eda
Contra
Costa
Mar
in
Napa
San
Fran
cisc
o
San
Mat
eo
Sant
a Cla
ra
Solano
Sono
ma
Owner
Median
Income
Renter
Median
Income
6
Source: U.S. Census Bureau, American Community Survey, 5-year Estimates 2010
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Source: U.S. Census Bureau, American Community Survey 5-year Estimates, 2010
Housing Cost Burden is Most Severe for Lowest-Income Renters
• In all Bay Area counties, nine out of every ten renters earning less than $35,000 per year have housing cost burdens, spending more than 30% of their income on rent
• In eight of nine Bay Area counties, only one out of every ten renters earning more than $75,000 per year face the same rent cost burdens
7
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Rent Gap / Housing Wage
9 Based on HUD April 2013 estimated “fair-market rent” of $1,222 for a one-bedroom apartment in Alameda or Contra Costa County, and on 2013 wage data from http://www.labormarketinfo.edd.ca.gov.
Occupation Median
Hourly Wage Median
Annual Salary Weekly hours of work to afford a 1-BR apt.
Calif. Minimum Wage $8.00 $16,640 118
Food Preparation and Serving Workers $9.40 $19,552 100
Cashiers $10.93 $22,734 86
Security Guards $14.47 $30,098 65
Janitors $14.98 $31,158 63
Preschool Teachers $15.18 $31,574 62
Office Clerks $17.29 $35,963 54
Construction Laborers $24.24 $50,419 39 Licensed Practical and Vocational Nurses $28.60 $59,488 33 Police, Fire and Ambulance Dispatchers $32.88 $68,390 29
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Displacement
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Story of the Lee family in San Francisco
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One of many: the bigger struggle
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The Region: Uneven Impact
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WHAT IS DISPLACEMENT?
• People losing their homes & communities against their will.
• Describes what happens when external forces make living in a home or community impossible.
• When market forces or public policy cause people to be pushed out of their neighborhoods & replaced by people who may be of a different race, economic status, & background.
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Impacts of displacement If the displacee(s)…
• Re-settles nearby… • Moves far away… • Doubles up with
family/friends… • Moves into a single-race, lower
income community…
• Takes on the higher cost for housing…
• Can’t find anything else…
Then they are at risk of…
• Repeated displacement • Higher transportation costs • Over-crowding & illegal
conversions • Increasing segregation &
breaking-up of political power of minority groups
• Decrease money left for other necessities
• Homelessness
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Causes of affordable housing crisis & threat of displacement
• Bay Area’s Hot Housing Market and Profit-Driven Response
• Lack of Government Funding
• Lack of Equity in Transit-Oriented Development
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Bay Area’s “hot” housing market
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Capitalizing on the Hot Market
• Evictions
• Foreclosures
• Condo conversions
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Foreclosure & speculation
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Completed Foreclosures (2007-2011)
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Investor purchased properties (2007-2011)
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Displacement by condo conversion
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Brief history
• Condo as form of ownership emerged in the 1960s and grew in the 1970s in CA as house prices rose and people looked to condos as a less expensive route to homeownership.
• However, condo conversions can negatively affect low-income renters by taking affordable rental units off the housing market and by threatening eviction.
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• Condo buyers – Paying $300,000 -
$500,000
– Need down payment of $30,000 to $50,000
– And monthly mortgage payment of $2,000 - $3,000
– Affordable to incomes of $75,000 to $120,000
• Renters:
– Paying $900-$1200/ month
– Affordable to incomes of $35,000 to $50,000
During the recent real estate boom in the late 2000s, Oakland lost about 800 apartments.
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Lack of Government Funding
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Transit-Oriented Development
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New Regional Plan
• Adopted 2013
• Reduce sprawl and congestion
• Housing close to transit
• “Complete communities”
• Equity issues
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Displacement Risks
40
• Direct Displacement
– Publicly owned sites (BART, etc.)
– Privately owned sites
• Indirect Displacement
– Rent Increases
– Condo conversions
East Bay Housing Organizations
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TOD in Oakland
Coliseum City
International Blvd –
Bus Rapid Transit
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TOD in Oakland
East Bay Housing Organizations 42
Broadway Valdez
Lake Merritt Station Area
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Solutions – New Affordable Housing
MURAL, BRIDGE Housing –
MacArthur BART transit village
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Solutions - Anti-displacement policies
• Replacement housing requirements
• Relocation assistance
• Preservation of existing assisted housing
• Acquisition/rehab of housing currently affordable
• Rent control
• Just cause for eviction
• Condo conversion controls
45 East Bay Housing Organizations
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Solutions – Inclusive Policies
• Funding for development of affordable housing
• “Value capture” strategies
• Commercial linkage fees
• Inclusionary zoning ordinances
• Housing impact fees
• Individual development agreements
• Land dedication and banking
46 East Bay Housing Organizations
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Opportunities for Advocacy
East Bay Housing Organizations 47
– Individual Projects
–Plan Level Advocacy • Specific Plans
• Housing Elements
–Regional Advocacy • BART and Transit agencies
• One Bay Area Grants
• Transportation Funding – Measure B?
• Cap and Trade Revenues
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Solutions- Ideological Shift
• Alter our relationship with housing-Decommodification of housing
• Change our approach to development from being profit-driven to being human-based
• Make sure that long-standing residents have a fundamental role in the development of their neighborhoods
• Build power in disinvested communities through organizing