Presentation on theme: "The Obama Administrations Public Housing and Rental Assistance Agenda."— Presentation transcript:
The Obama Administrations Public 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 (contd.) 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
Obamas 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 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
Community Leaderships 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 Nations Economic Recovery