Preserving Affordable Housing Near Transit

A Project of the Housing the Workforce Working Group as Part of the Bay Area Regional Prosperity Plan

October 3rd, 2014Non-Profit Housing Association of Northern California Conference

James Pappas, Housing Policy and Preservation AssociateThe California Housing Partnership

Project Purpose

Land use and Transportation planning in California must now be integrated in Sustainable Community Strategies that demonstrate reductions in GHG emissions from auto use.

The Bay Area, like other regions of the state, is emphasizing residential and job growth in Priority Development Areas (PDAs) centered around transit to reduce GHG emissions.

The PDAs contain a significant portion of the existing housing affordable to lower income households so preserving this housing stock and preventing displacement are essential.

Priority Development Areas

San Francisco

Oakland

San Jose

Fremont

• Centered around present and future transit

• Focus on established urban and suburban centers

• Support infill development

• Eligible for additional planning and infrastructure funds to facilitate growth

Preserving Affordable Housing Near Transit Project Scope and Schedule

Regional Analysis (Months 1 - 3)• Identify where there are concentrations of vulnerable affordable housing

stock in the Bay Area in relation to: existing and future transit system, places most likely to see growth—the PDAs, and vulnerable communities (Communities of Concern).

 Local analysis and policy recommendations (Months 4 - 19)

• Work with local jurisdictions to create policy mechanisms to preserve affordable housing in vulnerable locations. (San Jose, Fremont, Oakland)

 

Preservation Toolkit (Months 19 - 21)• Scale local findings and recommendations to regional scale, designed

as a guide for jurisdictions with varying capacity and preservation

needs.

Regional Analysis

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Restricted Affordable Housing Risk FactorsHUD Funded and Financed Properties:

• Expiration date of HUD Rental Assistance Contract• Maturity of HUD subsidized mortgage, or

prepayment

LIHTC properties:• Risk based on remaining years of regulatory use

agreements

Ownership Type:• For-profit owners• Small non-profits

Assessing the Bay Area’s Restricted Affordable Housing

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Source: HUD, TCAC, USDA

- 100,479 total affordable units in the region in nearly 1250 properties

- 74,841 units with LIHTC- 31,017 units with HUD Rental

Assistance- 9,347 at-risk units in 128 properties the

vast majority belonging to small nonprofits or for-profit companies

Existing Transit (Bus and Rail)

• ~64,000 affordable housing units near transit

• 64% of all affordable units in the region

• 10% are at-risk (~6,500)

• 69% of all at-risk units

Major New Transit Investments

• ~16,000 affordable housing units

• 16% of all affordable units in the region

• 9% are at-risk (~1,500)

• 16% of at-risk units

Market Pressures

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Local Preservation Analysis: 3 Cities Project began with focus on 2 cities set to receive major transit investments, San Jose and Fremont, to look at preservation need. Both will have new rail stations as part of the BART to Silicon Valley project.

In addition, through the regional analysis, Oakland, was selected as a third focus for preservation analysis.

Methodology for Identifying Preservation Priorities at the

Local Level Case Study : San Jose

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Risk Assessment of San Jose’s Affordable Units

• 169 total properties with 18,690 Units, ~15,000 LIHTC and 3,600 HUD

• 11 at-risk properties are older, HUD funded properties with rental assistance

• Of 6 small nonprofits with “at-risk” properties, outreach revealed that nearly all are stable and plan to preserve long term affordability

• All 5 at-risk for-profit owned properties are owned and/or managed by the same company

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Restricted Affordable Properties in Relation to Transit

• Rent Control (max. 8% Annual increase if built before 9/8/79)• Rental Rights and Referrals Program (Housing Dept.)• Code Enforcement

San Jose Rent Control

GeographyRent Control Properties

Rent ControlUnits

Properties with 25 - 50 units

Properties with > 50 units

Near Transit 3,003 24,962 125 16

Future Transit 269 2,289 10 1

San Jose (all) 4,851 40,577 211 32

Identifying Priority Preservation Neighborhoods

• Spatial Analysis:

• Restricted Affordable Housing

• Naturally Occurring Affordable Housing

• Transit and Transportation Investments and Planning Efforts

• Demographics and Neighborhood Change

Housing Affordable to Households Earning 50% of AMI or Less

PDAs in San Jose

Areas with Major Transit Investments or Planning Focus

Areas with 50% or more Renter Households

Gentrification

Areas with Neighborhood Change 1990-2000

Areas Susceptible to Gentrification

Area of Overlap: Priority Preservation Area

Building a Preservation Toolkit

• Rent control• Rental Rights and Referrals Program• Code Enforcement• Ongoing monitoring of Restricted Affordable Properties

and owner outreach• Inclusionary Housing Policy currently being litigated

before California Supreme Court• Housing Impact fee currently under study

San Jose Existing and Proposed Affordable Housing Supportive Policies

• Increased rent control monitoring• 1-for-1 replacement of rent controlled and restricted

affordable units in event of redevelopment• Grants for tenant organizing and education• Landlord education program• Increased code enforcement• Local Preservation Ordinance• Dedicated Preservation Funding• Condo Conversion limits especially in priority pres. areas• Targeted Acquisition Strategy by Location & Building Type• Subsidy in exchange for new or extended affordability

restrictions• Land Value Recapture

San Jose Affordable Housing Supportive Policies: Possible Additional Tools

• Methodology of how to identify key areas for preservation focus- could help prioritize preservation efforts and resources

• Examples of current local tools and how cities are working to preserve subsidized and market rate housing stock.

• Recommendations derived from local work as models for other jurisdictions.

• Database of at-risk subsidized properties near existing transit, future transit, in PDAs.

Regional Preservation Toolkit could include….

Thank you!

For more information contact us:

James Pappas, Housing Policy and Preservation AssociateCalifornia Housing Partnership Corporation (CHPC)

jpappas@chpc.net (415) 433-6804 x 320

Elizabeth Wampler, Associate Initiative OfficerGreat Communities Collaborative of the San Francisco Foundation

ewampler@sff.org (415) 733-8573