TOD University 2013 Housing 201: Preservation

Brainstorm: How do we lose affordable apartments? Rent raised Slumlords run building into the ground Fixed up so rent can be raised Turned into condominiums Torn down for new development Affordability restrictions end Foreclosure Landlord harassment

Match up tools (government laws and programs) that will be most effective in saving affordable apartments Discuss ideas for new policies Select the best tool for the job

Rents Going Up? Rent Stabilization Ordinance Los Angeles City ordinance 638,000 apartments covered Apts built before 1979 Landlords can set rent on empty apartment, increases regulated “Just Cause” eviction protections How many “RSO apts” in our community?

Privately-Owned Subsidized Apartments About 69,000 of these apartments in LA City Affordability is time- limited 15,000 will expire in 5 years ( ) 40% of expiring are in transit areas (6,000 apts) How many of these in our community?

Neighborhood #1: Hollywood Great bones Huge problems Low income area 96% renters, mostly in RSO Three new Metro Red Line stations High density Lots of building in last boom

Neighborhood #1: Hollywood 96% renters, 75% under RSO

Population declined Household growth slowed Household size got smaller Fewer low-income people Higher incomes More residents own cars What Happened in Hollywood? Low income people pushed out by rising rents

Neighborhood #2: Highland Park 1st LA Streetcar suburb Gang problems Half single family Low density One new Metro Gold Line station Very little development in last boom

1,900 new homes – 57% affordable No new development around station Rents rose 38% (2000 to 2009) Displacement without new development Low income people pushed out by rising home prices What happened in Highland Park?

Neighborhood #3: Washington Blvd. Distressed commercial area LA Trade Tech, Courts Low income area Three Metro Blue Line stations, opened 1990 Very little new development in last boom

Second busiest light rail in the nation. 22 stops including 5 in the City of LA: Lots of development around Staples, but very little along Washington Blvd (Grand, San Pedro, & Washington). Neighborhood #3: Washington Blvd.

Under invested areas: perceptions of high crime Automobile- oriented with lots of parking, drive- thru restaurants Little change in commercial or residential areas. Not Much Happened on Washington

Hot Markets Cool Markets Lots of building in last boom “Good bones” Significant public investment (transit, etc) Property values relatively low Not much new building during last boom Property values and rents are low Crime and disinvestment Not much in the way of “good bones”

What neighborhoods are heating up? © 2011 Reconnecting America.15

New Policies Needed Demolition limits Safeguard the affordability of RSO buildings Condo conversions Zoning that incentivizes affordable housing Make it easy to build where development is desired Enforcement: tools we have Rent Stabilization Ordinance Just Cause Eviction Protections Primary Renovation Systematic Code Enforcement Program Relocation Benefits Condominium Disapproval

Housing Element: Site Inventory Update due Nov Includes local policies and enough sites for growing population

Housing 201: Preservation TOD University 2013 Thank you

Photo Credits Slides 1 & 4- Beth Steckler Slide 5 – Gary Minnaert, Slide Hollywood California.jpghttp://en.wikipedia.org/wiki/File:Halifax_Apartments,_ Slide 7 – Courtesy of Economic Roundtable Slide 9 – Charlotte Bromley Slide Slide 12: “A Closer Look at the Blue Line: Building Communities Around Transit,” Livable Places, Slide 15: “Preservation in Transit-Oriented Districts: A Study on the Needs, Priorities and Tools in Protecting Assisted and Unassisted Housing in the City of Los Angeles,” Los Angeles Housing Department, 2012.