Housing Department Affordable Housing Workshop William Huang

Housing Department 2 Discussion Issues 1.Funding Priorities 2.Inclusionary Housing Modifications 3.Project Housed 4.Permanent Sources

Housing Department 3 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

Housing Department 4 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

Housing Department #1 Funding Priorities

Housing Department 6 Housing Needs

Housing Department 7 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

Housing Department 8 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 ( present)

Housing Department 12 HOUSING PRODUCTION Affordable Housing Inventory

Housing Department 13 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

Housing Department 14 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

Housing Department 15 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

Housing Department 17 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

Housing Department 18 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

Housing Department 21 HOUSING PRODUCTION Inclusionary In-Lieu Fees

Housing Department 22 HOUSING PRODUCTION In-Lieu Fees w/ Leveraging

Housing Department 23 HOUSING PRODUCTION Inclusionary In-Lieu Fees

Housing Department 24 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

Housing Department 26 Homeless Count 2011 Homeless Count was conducted on 1/26/ point-in-time count is 1,137 persons 20% decrease between , 17% increase between % of persons counted were homeless 1 year or more 28% are disabled

Housing Department 27 Project Housed Chronic Homeless Humane Economical  Emergency Rooms  Courts  Jails Vulnerability Index

Housing Department 28 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.”

Housing Department 29 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

Housing Department 30 Vulnerability Index Partner with Common Ground  LA Skid Row  Santa Monica  San Diego  Hollywood

Housing Department 31 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 persons

Housing Department #4 Permanent Sources

Housing Department 33 Anticipated Available Funding

Housing Department 34 Redevelopment Tax Increment Housing Set Aside Funds

Housing Department 35 Documentary Transfer Tax $744,238 in FY 2010 at $0.55 per $1,000 $3.86M would have been raised at LA rate of $ estimated units (if $3.86M allocated to affordable housing) 2/3 rd voter approval

Housing Department 36 Permanent Funding Sources Commercial Linkage Fee  $ $1.06 /SF in West Hollywood  $ $2.11/SF in Sacramento  $4.79/SF in Santa Monica  $ $20.00/SF in San Francisco  If located in Santa Monica, IDS would have generated $766,400 for affordable housing