TOD University (2013) Housing 202: Building New Affordable Homes

1. Land 2. Money 3. Political support

Land: Nuisance Properties

Land: Joint Development with Metro

Land: City-Owned Parking Lots Highland Park Gold Line Station

Land: Housing Authority Garden style apts Large tracts of land Owned by a public agency

Land: Joint Use on Public Land LAUSD Early education center 50 affordable apartments Shared community room & playground

$ 5 million + $25 million $30 million land construction $ 170,000/mo Financing cost Example #1: Building 100 New Apartments $ 1,700/mo + $ 600/mo $ 2,300/mo Financing cost per apt Property mgmt Rent Affordable at income of $82K/year or $6,900/mo

Subsidy to make it more affordable 3 ways to lower costs - Free land - Help with construction costs - Help with monthly operating expenses

Example #2: Free land + $10 million subsidy for construction $ 850/mo $ 600/mo $1,450/mo Financing cost per apt Property mgmt $ 0 million $15 million land construction Affordable at income of $ 52,000/year or $4,300/mo

Imagine that someone gave you a brand new building with 100 apartments. How much rent would you have to charge? Small Group Exercise #1

How much rent if land & building are free? $ 0/mo $ 600/mo Mortgage per apt Property mgmt $ 0 Free land construction

Match incomes to occupations. Match rents to incomes to affordable rents. Match what people can afford to rents in the neighborhood. Exercise # 2: Match Incomes & Rents

Operating Subsidies $ 460/mo $ 213/mo $ 74/mo Minimum Wage Mother & 2 kids General Relief Lower rents by subsidizing operations Section 8 Voucher Tenant pays what they can afford Section 8 pays the balance each month

Conventional Mortgage Redevelopment Housing Set Aside State Multi-family Housing Program (MHP) Low Income Housing Tax Credits Tax Exempt Bonds Community Development Block Grant HOME Affordable Housing Trust Fund Cal HFA Section 8 Housing Vouchers Affordable Housing Programs Conventional Mortgage Redevelopment Housing Set Aside State Multi-family Housing Program (MHP) Low Income Housing Tax Credits Tax Exempt Bonds Community Development Block Grant HOME Affordable Housing Trust Fund Cal HFA Section 8 Housing Vouchers

16 Average HOME 50% MHP 20% CRA 17% - now gone HUD CDBG 5% No General Fund contributions since 2005 Public Funding for Affordable Housing City of Los Angeles (Economic Roundtable)

Possible New Money Housing Benefit/Mitigation Fees In-lieu fees from mixed-income housing ordinances Building envelope bonuses Infrastructure Finance Districts Parking districts Business Improvement Districts Voter approved bonds or assessments

Political Support: Policy More money More land Bring affordability into land use planning Put Housing Element programs into action State legislation Federal funding

Political Support: Community Benefits Agreements Work with developer to address neighborhood concerns Encourage voluntary mixed-income Encourage developers to work with non-profit developers

Political Support: Individual Affordable Projects Support developers in working with neighbors Support applications for funding Help with planning approvals

Los Angeles Housing Department Community Housing Developers Community Economic Corporations Legal aid organizations Tenant rights organizations Bicycle & pedestrian advocates Health advocates Experts & Resources

Housing 202: Building New Affordable Homes TOD University (2013) Thank you

Photo Credits Slides 1, 4, 17, 18 - Beth Steckler Slide 2: Courtesy of Abode Communities by John Ellis Photography. Slide 3: Courtesy of Hollywood Community Housing Corporation—St. Andrew’s Court. Slide 4: Courtesy of McCormack and Adolfson & Peterson Construction Slide 5: Google Maps Slide 6: photo by Jerard Wright, aerial map by Google Maps, drawing courtesy of the Housing Authority of the City of Los Angeles. Slide 7: Courtesy of Abode Communities by Gary Krueger Project, Rio Vista Apartments Slide 16: Courtesy of Economic Roundtable Slide 19: Courtesy of LAANE Slide 20: Lakisha Hull