Housing Department

Affordable Housing Workshop

William Huang2.7.11

2

Housing Department

Discussion Issues

1. Funding Priorities

2. Inclusionary Housing Modifications

3. Project Housed

4. Permanent Sources

3

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

4

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

6

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

7

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

8

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)

12

Housing Department

HOUSING PRODUCTION Affordable Housing Inventory

13

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

14

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

15

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

17

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

18

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

21

Housing Department

HOUSING PRODUCTIONInclusionary In-Lieu Fees

22

Housing Department

HOUSING PRODUCTIONIn-Lieu Fees w/ Leveraging

23

Housing Department

HOUSING PRODUCTION Inclusionary In-Lieu Fees

24

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

26

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

27

Housing Department

Project Housed

• Chronic Homeless• Humane • Economical

> Emergency Rooms> Courts> Jails

• Vulnerability Index

28

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.”

29

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

30

Housing Department

Vulnerability Index

• Partner with Common Ground> LA Skid Row > Santa Monica> San Diego> Hollywood

31

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

33

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

34

Housing Department

Redevelopment Tax Increment Housing Set Aside Funds

35

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

36

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