The Obama Administration’sPublic Housing and Rental Assistance

Agenda

Santa Clara County Median Income in 2010

• Eligible Incomes Vary by Household Size• Hypothetical Household of Four (Median Income

of $105,500):– Moderate-Income: $127,320 (up to 120% of Median)– Low-Income: $84,900 (up to 80% of Median)– Very Low-Income: $53,050 (up to 50% of Median)– Extremely Low Income $31,850 (30% of Median)

Local Housing Problems• Housing is not affordable. Although median

incomes are high, people on fixed incomes and earning minimum wage cannot afford decent housing

• Lack of housing supply. Insufficient supply of all housing, particularly affordable housing.

• Overcrowding is common. Two or three families often squeeze into small apartments.

Housing problems (cont’d.)

• Some housing in need of repair.1960s and 1970s housing is showing signs of disrepair and need for rehabilitation

• Homelessness continues to be a problem. An estimated 7,500* people are homeless in San Jose.

• Section 8 Wait List has 55,000+ households. 500 vouchers available per year from turnover.

* Figure provided by City of San Jose

Least Affordable Metropolitan Statistical Areas (MSAs)

MSA Housing Wage for Two Bedroom Rent

• San Jose, CA $35.02 • San Francisco, CA $34.13 • Stamford-Norwalk, CT $28.71 • Oakland, CA $27.31 • Boston, MA-NH $27.29 • Santa Cruz-Watsonville, CA $25.79 • Nassau-Suffolk, NY $25.46 • Westchester County, NY $24.88 • Orange County, CA $23.46 • Washington, DC-MD-VA $23.42

Statistics from National Low Income Housing Coalition (2003)

Housing Authority Programs and Services

• Section 8 Rental Assistance Program• Affordable Housing Development Using

Tax Credit Equity and Commercial Debt• Property Management• Community Services

Obama’s Public Housing Agenda(Proposed FY 2011 Budget)

• Operating Fund close to last administration• Capital Fund @ $2B with $30B in deferred

improvements• No PBA vouchers for public housing (PH

Dispo)• HOPE VI @ $0, with new program “Choice

Neighborhood Initiative” at $250M

What works and should be expanded: Public Housing Disposition

• Transfers public ownership to non-profit entity.• Provides PBA vouchers that increases NOI.• Allows use of private equity and debt• Generates significant upfront capital to

rehabilitate • Provides funds for services

Rincon Gardens

Rincon Senior Housing

• 200 Unit Senior Housing• Built in 1981• Capital and Operating Funds Inadequate• Serious deterioration• Highly inefficient energy systems• Limited funds for services

Structural Beam Failing

Major Issues Prior to Rehab • Communication with tenants, neighbors, public

officials about upcoming changes• Coordination of real estate activities and tenant

eligibility process• Careful handling of requirements by public and

private entities• Clear tracking of expenses, timelines and key project

events• Compliance with dozens of laws, rules and

regulations.

Substantial Rehabilitation Required

Housing as Economic Stimulus

• Construction Jobs• Material Suppliers• Professional Services• Development Fees for Local

Government• Investment Community

Receives Market Returns

Housing = Jobs

Project created 400 jobs over a 2 year period.

Housing = Economic Activity

Results Expand Support for Affordable Housing

Results Expand Support for Affordable Housing

Results Expand Support for Affordable Housing

Community Leadership’s Positive Reaction

What needs to be done….• Ambitious Housing Production Program• Significant Effort to Improve Public Housing• Reform of HUD rental assistance programs• Support Regulatory Relief• Connect federal efforts on housing and

social services

Conclusion: Affordable

Housing Can Contribute to

Nation’s Economic Recovery