how california’s housing market is failing to meet the needs of low-income households
DESCRIPTION
How California’s Housing Market is Failing to Meet the Needs of Low-Income Households. James Pappas, Housing Policy and Preservation Associate California Housing Partnership SCANPH Webinar 03/17/2014. About California Housing Partnership. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/1.jpg)
James Pappas, Housing Policy and Preservation Associate
California Housing PartnershipSCANPH Webinar
03/17/2014
![Page 2: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/2.jpg)
California Housing Partnership Corporation is a 25 year old private, nonprofit organization created by the state of California to monitor, protect, and augment the supply of homes affordable to lower-income Californians and to provide leadership on affordable housing finance and policy. Since 1988, California Housing Partnership has assisted more than 200 nonprofit and local government housing organizations to leverage morethan $5 billion in private and public financing to create and preserve 20,000 affordable homes.
![Page 3: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/3.jpg)
• Nearly 1 million ELI households do not have access to an affordable home.
• Median rent in California rose over 20% from 2000 to 2012 while income declined by 8%.
• The percentage of low-income renters who pay more than 50% of income in rent continues to grow.
3
![Page 4: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/4.jpg)
4
![Page 5: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/5.jpg)
5
![Page 6: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/6.jpg)
6
![Page 7: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/7.jpg)
7
![Page 8: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/8.jpg)
8
San FranciscoSan JoseOakland
Orange CountySan Diego
Los Angeles
![Page 9: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/9.jpg)
9
![Page 10: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/10.jpg)
• ELI households are the most vulnerable residents of the state. More than 50 percent of ELI households are elderly or disabled.
• VLI households are more likely to include low-wage workers. In fact, hundreds of thousands of workers throughout the state earn less than half the state’s median household income or less than $28,510.
10
![Page 11: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/11.jpg)
11
![Page 12: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/12.jpg)
12
![Page 13: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/13.jpg)
13
• 46% of Californians rented their homes in 2012, compared to 42% in 2006.
• The number of renter households increased by over 700,000 while homeowner households decreased by over 300,000
• Increased demand in the rental market has driven up median rents.
![Page 14: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/14.jpg)
14
Number of Renter Households vs. Owner Households in LA County
2000 2006 2012
Household TypeNumber of Households % of total
Number of Households % of total
Number of Households % of total
Renters 1,634,030 52.1% 1,607,392 50.7% 1,750,538 54.2%
Owners 1,499,744 47.9% 1,564,640 49.3% 1,481,122 45.8%
Source: 2000 Census, 2006 1-year ACS, 2012 1-year ACS
![Page 15: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/15.jpg)
15
![Page 16: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/16.jpg)
16
• In 2013, the median rent in California was $1,550 while the average renter wage was estimated at $17.99/ an hour.
• The average renter would need to work at least 66 hours a week year round in order to afford that rent.
![Page 17: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/17.jpg)
17
• In September 2013, the median sale price of a single-family home in California was $428,810, a 75 % increase from the bottom of the market in 2009.
• Assuming that the average renter earning $17.99 an hour could put 10 % down and qualify for a 4.5 % interest mortgage, she would still have to devote over 60 percent of her income to afford home ownership.
![Page 18: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/18.jpg)
18
According to the Supplemental Poverty Measure, 23.8% of Californians (8,952,000 people) are living in poverty – by far the highest percentage and number of any state.
![Page 19: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/19.jpg)
19
According to the California Poverty Measure, another alternative to the official poverty measure that accounts for cost of living, including housing, and government assistance, LA County has 26.9% of its population living in poverty- the most of any county in the state.
![Page 20: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/20.jpg)
20
• The elimination of Redevelopment Agencies in 2012 led to the loss of more than $1 Billion annually in funding for affordable housing
• State housing bond funds from Propositions 46 and 1C will likely run dry by 2014 resulting in the loss of nearly $400 million annually
• Recent cuts in federal housing funds have lead to the loss of another $200 million annually
![Page 21: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/21.jpg)
21
![Page 22: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/22.jpg)
22
Funding dropped by $2 billion or 79%
![Page 23: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/23.jpg)
23
Funding dropped by at least $300 million – not including the exhaustion of state bond funds
Changes to LA County's HUD and Redevelopment Affordable Housing Funding Sources
FY 2007/08 to FY 2012/2013
2007/2008 2012/2013 % Change
CDBG $158,341,788 $110,275,258 -30%
HOME $75,878,411 $36,267,516 -52%
Redevelopment $251,148,877 0 -100%
Total $485,369,076 $146,542,774 -70%
![Page 24: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/24.jpg)
24
1) Replace the exhausted state housing bonds(Propositions 46 and 1C) by:
•Passing the Homes and Jobs Act (SB 391)• $500 million per year for affordable housing
•Making an immediate General Fund investment in the state’s existing rental housing production programs.
![Page 25: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/25.jpg)
25
2) Invest a significant portion of Cap-and-Trade auction revenues in HCD’s existing TOD program
![Page 26: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/26.jpg)
26
3) Give local governments tools to replace lost funding and comply with SB 375 obligations to create and preserve affordable homes by:
•Lowering the required voter threshold to 55% to approve funding for basic infrastructure including transportation, housing, and parks.*
•Authorizing a tax increment financing (TIF) program that gives local governments the ability to fund the development of infrastructure including transportation, housing, and parks.
•Allowing local jurisdiction to require inclusion of a percentage of homes affordable to low- and moderate-income households in new housing development by passing into law a new version of AB 1229, which the Governor vetoed in 2013.
![Page 27: How California’s Housing Market is Failing to Meet the Needs of Low-Income Households](https://reader037.vdocuments.site/reader037/viewer/2022110211/568132a0550346895d994232/html5/thumbnails/27.jpg)
California Housing Partnership Corporation
James Pappas, Housing Policy & Preservation Associate [email protected] or 415-433-6804 x320
Megan Kirkeby, Sustainable Housing Policy [email protected] or 415-433-6804 x 319
Matt Schwartz, President & [email protected] or 415-433-6804 x 311
27