Housing Department Affordable Housing Workshop William Huang 2

Housing Department Affordable Housing Workshop William Huang 2. 7. 11

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

Working Principles Housing Department • • 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 3

Affordable Housing Programs Housing Department • 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. Pasadena. Housing. Search. com 4

Housing Department #1 Funding Priorities

Housing Needs Housing Department 6

Housing Production Housing Department • 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 > 7

Housing Production Housing Department • 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) 8

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HOUSING PRODUCTION Affordable Housing Inventory Housing Department 12

Arrival of Senior Bubble Housing Department 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 13

Prelim Funding Priorities Housing Department • 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 > 14

Prelim Funding Priorities Housing Department • 3. Pipeline Projects > Predevelopment § Boadway Apts § Heritage Square § Nehemiah Court § Herkimer Arms § Douglas Oaks § Lamanda Park 15 > Construction § Hudson Oaks § Parke Street § Washington Classics

Housing Department #2 Inclusionary Housing Modifications

Inclusionary Housing Department • 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 > 17

Inclusionary Housing Department • Inclusionary & Density Bonus Units 308 Rental, 50 Ownership > 189 VL/L, 169 Mod > • In Lieu Fees Paid 9% Rental Projects > 91% Ownership Projects > 18

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HOUSING PRODUCTION Inclusionary In-Lieu Fees Housing Department 21

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

HOUSING PRODUCTION Inclusionary In-Lieu Fees Housing Department 23

Inclusionary Preliminary Ideas Housing Department • • • 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 24

Housing Department #3 Project Housed

Homeless Count Housing Department • • • 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 26

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

Vulnerability Index Housing Department 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. ” 28

Vulnerability Index Housing Department • 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 29

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

Project Housed Proposed Next Steps Housing Department • • • 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 31

Housing Department #4 Permanent Sources

Anticipated Available Funding Housing Department 33

Redevelopment Tax Increment Housing Set Aside Funds Housing Department 34

Documentary Transfer Tax Housing Department • • $744, 238 in FY 2010 at $0. 55 per $1, 000 $3. 86 M would have been raised at LA rate of $4. 50 32 estimated units (if $3. 86 M allocated to affordable housing) 2/3 rd voter approval 35

Permanent Funding Sources Housing Department • 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 36