Tools for Affordable Housing in LA County
Addressing the pressing need for affordable housing in LA County through insights on income gaps, unaffordability challenges, and the importance of leveraging tools like rent control, public housing developments, and value capture strategies. The article highlights the urgency for innovative solutions to combat rising housing costs and homelessness.
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THE NEED FOR TOOLS TO CREATE AFFORDABLE HOUSING IN LA COUNTY By Lisa Payne, SCANPH For Economic Sustainability Roundtable s Forum on Housing Affordability September 16, 2015
Gap Between Income & Housing Costs Basic Math To afford the median monthly rent of $1200 for an apartment in LA County, need to earn: $23 per hour $48,000 per year Median renter household income is $39,000 per year. More than half of renter households can t afford the median rent. LA Co. is short 500,000 affordable homes for households making under $43,000 per year.
Results of Unaffordable Rents LA is Overcrowding Epicenter of the Country oThere are 331 zip codes in the top 1% of zip codes for overcrowding in the County. o97 or nearly 30% -- of those zip codes are in LA County. Increasing Homelessness o44,000 homeless in LA County, up 12% from last year. oFederal government no longer provides homes for mentally ill, but also due to rising rents.
Current Strong Urban Market Intensifies Need Rising cost of homes in urban center, particularly around Transit. Neighborhoods are unaffordable to long- term residents. Increasingly drive til you qualify for rental market.
Need Better Affordable Housing Tools Rent-Controlled Apartments no new rent- controlled apartments. In hot market, landlords try to get around. Need strong protections. Public Housing Developments no more currently being created. Tenant Vouchers depend on landlords voluntarily taking them. Right now, 25% of LA City voucher recipients turn them back in because they can t find a landlord who will accept them.
Need Better Affordable Housing Tools Value Capture -- Harnessing the Market to Build & Preserve Affordable Homes Legal issues with inclusionary housing for apartments But a locality can provide building incentives to market-rate housing developers that agree to: Create affordable homes and Ensure No Net Loss of rent-controlled or other affordable apartments with development Important not to re-zone and give away densities without capturing their value for public benefit. Good tool in hot market with low starting densities (like Los Angeles).
Need Better Affordable Housing Tools Placing Fee on Commercial & Market-rate Housing Development ( Impact Fee ) To compensate for future workers needs for affordable housing. Cities that have include San Francisco, Santa Monica, and San Jose. Where fee is placed on market-rate housing development, may allow developer to build affordable homes on site instead of paying fee.
Need Better Affordable Housing Tools Private Affordable Developments, owned and operated by mission-driven developers takes public funding to build
LA City Affordable Housing Trust Fund Has Been Cut by 75%. From 2008 to 2014, annual funding in the Trust Fund fell from about $108M to about $26M. Senate Budget Bill would cut HOME by 90%, leaving $3M in Trust Fund
Funds in LA County cut 80% at federal, state & local levels; $250M lost annually due to loss of redevelopment.
Motion to Allocate Former RDA Funds for Affordable Development In 2014-15, LA County received $150 M that formerly went to RDAs throughout County. We are asking that a majority of these funds go to affordable housing. Will prioritize safety net, including families and seniors making under $43,000, formerly homeless, child-welfare-involved families, formerly incarcerated, transition aged youth. Solis office asking for focus on families making under $25,000 per year.
What You Can Do Fill out postcard to your Supervisor and return to Maira Sanchez, Chloe Chais or me TODAY. Fill out organizational endorsement form. Let one of us know you re interested in getting more involved: Lpayne@scanph.org Msanchez@scanph.org
